Saadiyat Island in Abu Dhabi is set to become the first Mandarin Oriental hotel in the Middle East region, with the opening scheduled for late 2013 or early 2014.
Gulf News has reported that the boutique hotel group is keen to increase its presence in the emirates.
The hotel on Saadiyat Island, being developed by Abu Dhabi's Tourism Development and Investment Company, will feature 195 rooms, a spa and a host of food and drink outlets.
"We are still more of a boutique hotel group with just 26 properties around the world and this property [in Abu Dhabi] will be a milestone for us as a brand," said Christoph Mares, director of operations, Europe, Middle East and Africa.
The news comes after the Abu Dhabi Tourism Authority revealed that double-digit growth was experienced across key tourism performance indicators in Abu Dhabi during February.
This included news that the number of guests staying in hotels in the emirate rose by 17 per cent over the course of the month.