It is a measure of Doha’s change of fortunes that the InterContinental – which in 2000 was the first five-star hotel to open in the Qatari capital in 18 years – nearly didn’t get built.

With oil prices in the late1990s hovering at near $10 a barrel, funding was in short supply. Today, the vista to the north of the 245-bedroom complex is an extensive building site of leisure and real-estate. More than a dozen top-tier hotels are under construction, helping to nearly double Doha’s capacity to 12,000 bedrooms by 2012, while off the West Bay, a land reclamation project will create the Pearl, an artificial island with 15,000 apartments, four hotels and four marinas.

The strength of oil explains the shift. But it is also evidence of Qatar’s effort to establish Doha as an upmarket resort to challenge Dubai. The success of its rival city to the east looms large in the Qatari consciousness. But Doha claims to be pursuing a different path.

“We are not seeking mass tourism,” says Ahmed Nuaimi, chairman of the Qatar Tourism Authority. “We are seeking a more selective market – conferences, conventions, and sports.”

As such, Doha recognises that it mostly figures as a quick stopover for business travellers heading between Asia, Europe and the US. Through spending more than £8 billion on tourism-related projects, Qatar hopes to double both its visitors – 800,000 last year – and their length of stay.

That investment tally does not include a new $7 billion (£3.5 billion) international airport, which is planned to handle 50 million passengers a year. The city also hopes to capitalise on the extensive sports facilities it built for last year’s Asian Games. It is now bidding to host the 2016 Olympics and 2018 football World Cup.

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