THE forest of cranes decorating the city skylines throughout the Gulf is visible proof of the effect of sustained higher oil prices on business confidence. The latest building boom is apparent throughout the region, and with mega-projects such as Dubai's Emirates Hills and Qatar's preparations for the 2006 Asian Games in the offing, it's little wonder that the construction industry and its supply chain is eyeing the Gulf with renewed interest.

Monitoring developments in the Gulf on behalf of British industry is one of the key responsibilities of British Trade International (BTI) - the joint venture between the UK's Department of Trade and Industry and the Foreign and Commonwealth Office which runs the British Government's export promotion and development effort. Richard Parry, head of their Middle East Unit, has been busy marshalling government support for activity in the sector.

'As soon as the oil price showed signs of sustaining a mid-20s level, we started planning for a surge in construction. This autumn we will be offering financial support for well over 100 British companies taking part in The Big 5, Index and Arabshop exhibitions in Dubai during October. We'll be spending something like a quarter of a million pounds ($370,000) in subsidies to get British firms to these shows - which is a clear statement of our confidence in the Gulf construction market,'' says Parry.

''We are also starting to put together a strategy for helping our companies bid for business resulting from Qatar's successful bid to host the 2006 Asian Games. My colleagues looking after Australia did a great job in positioning British companies for business coming out of the last Olympics and we can learn a lot from that experience - as well as from Manchester's Commonwealth Games project,' he adds.

Although the boom in construction was anticipated, Parry is impressed by the scale - and style - of the latest bout of building.

'Signature projects such as the Faisaliah and Kingdom Towers in Riyadh are a real sign of confidence as well as lending shape and form to the city. Dubai, of course, continues to amaze people with the pace and bravura style of its development,'' he says. ''It's only a few years ago that Le Meridien at Jumeirah looked rather lonely and out of the way. Today, it has spawned two extra towers and the complex is just part of a strip of five-star beach properties. And Dubai is fast spreading south to meet it. And the latest addition to the Deira skyline - the Marriott-managed Skywalk Towers - is going to look amazing.

''I was in Kuwait recently, and it was good to see several new construction projects under way. And with new legislation which should liberalise the economy and attract new investment going through the National Assembly, I can see this continuing. Bahrain, too, has some exciting new tourism construction projects under way.

''Our message to British companies is that the Gulf's construction sector - and all that goes with it - is in excellent shape. And with our support for The Big 5, Index and Arabshop, we're putting our money where our mouth is!'