Designs are being finalised for Dubai's own version of the Silicon Valley.

The Dubai Silicon Oasis (DSO) will cover 6.5 million sq m and construction is expected to begin within six months after finalising the designs prepared by experts including those with similar projects.

Zarouni said German semiconductor producer Communicant Ñ owned by Dubai, US chipmaker Intel and the German government Ñ would build a $1.7 billion plant in the DSO by 2007. The construction on this project will start within two years.

The DSO will also have an Institute of Technology that will set up in collaboration with the German IHP technological centre. The park will also have an incubation centre for broadband and wireless firms. The Dubai Silicon Incubation Centre (DSIC) will partner with several high end global research and development centres and educational institutions.

The company is relying on both private and public financing. It has already secured $325 million in equity capital from Dubai. A further amount of more than $300 million is being put up by the German federal government and Brandenburg. It has yet to arrange the rest.