Dubai already has the world’s first ski slope in a shopping mall (near the souk, just past Debenhams and around the corner from Harvey Nichols), as well as the world’s first seven-star hotel. Now it is to host the golf tournament offering the world’s largest purse – $10 million (about £5 million) – but without any likelihood of Tiger Woods, the world’s best player, appearing in it.

Starting in November 2008, golfers on the European Tour will compete for what is known at present as the Order of Merit, but will be renamed The Race to Dubai. The top 60 will play in a 72-hole strokeplay tournament in November 2009 for a first prize of $1.6 million, with the runner-up taking $1.1 million and third place $650,000.

The event will be named the Dubai World Championship, which is a clever marketing ploy in that it refers not to the World Golf Championship events but Dubai World, the sponsor.

The winner of The Race to Dubai will pocket a further $2 million for being Europe’s leading golfer of that year. Second place is worth $1.5 million and the third-placed player will get $1 million – the next 12 players will be rewarded handsomely, too. So if the winner of the Dubai World Championship is skilful enough to have won The Race to Dubai as well, his bank account will be refreshed by $3.6 million.

One thing is certain. This golfer will not be Woods because the American is not a member of the European Tour, one requirement of which is that each golfer plays a minimum of 11 events. The world No 1 played nine times this year.

Neither the European Tour nor the sponsors believe that Woods’s presence is essential. Nor is it thought that tour officials will reduce the prerequisite to accommodate him. If anything, the number is likely to be increased.

This announcement represents the playing of the tour’s ace card. The Middle East is bustling – Dubai in particular – financially very muscular and growing by the minute. It has a burgeoning leisure business to provide money when the oil runs out, as well as weather that is nearly perfect for golf. It also has excellent golf courses.

The Dubai World Championship is the European Tour’s answer to the FedEx Cup series organised by the PGA Tour in the United States, although it does not compete directly because that series finishes in September. However, it is hoped clearly to be an add-on to a highly lucrative end-of-season period.

The total investment being put up is more than $200 million over five years, with an option for an additional five years. Some of that money will be spent on supporting other European tournaments, financing an international headquarters for the European Tour in Dubai and in future joint golf course ventures. The money is coming from Leisurecorp, a company owned by Dubai World, which specialises in leisure developments such as the Jumeirah Golf Estate, the venue for the fledgeling event. This resort is typical of many venues for contemporary events in that it has multimillion-dollar homes surrounding the four courses, three of which are designed by players – Greg Norman, Sergio GarcÍa and Vijay Singh.

A further example of playing tournaments on courses surrounded by upscale housing developments and designed by present or former players is the Mission Hills resort in China, where this week’s World Cup will take place. When Mission Hills is finished – if it ever is – it will have 12 golf courses.

You may say that this announcement is providing more money for rich men. George O’Grady, the chief executive of the European Tour, believes that it is his fiduciary duty to come up with a tournament such as this, something to match the PGA Tour and something solely for his members.

“It is about European Tour players at the end of the season,” O’Grady said. “I admire the PGA Tour [in the US]. We have to accept our players are in demand now. They are charismatic, talented and in demand and we are responding to their ability, willingness and preparedness to travel.”

A businessman may be impressed by the scale of this development, but he may also question the wisdom of staging one of the world’s richest tournaments – with designs on becoming one of the best in the world, in an area where Woods has a considerable following – without the world No 1. It is a bold decision. Might it also be a rash one?

Keeping an eye on the prize

— The richest first prize in golf is £1 million, at the World Match Play Championship at Wentworth in Surrey, which is the average annual salary of Barclays Premier League footballers

— The purse for this year’s Players Championship was $9 million

— The purse for the Masters this year was $7 million, as it was for the US Open and US PGA Championship

— The purse for the Open was £4.2 million