LONDON, 17 October 2004 — Dubai is set to launch its own Formula One team in the 2006 world championship, becoming the second new outfit planning to make its entrance into the competition.

The announcement comes just days after Midland Formula One, which is backed by a Russian-Canadian billionaire, also said that they would be planning to run a team in the 2006 series.

The bid from the United Arab Emirates, which is believed to be the brainchild of Sheikh Ahmed bin Saeed Al-Maktoum, would also utilize the technological expertise of McLaren and the engines of Mercedes.

“I can confirm the existence of negotiations at this time between Dubai and Mercedes and McLaren,” said spokeswoman Ellen Kolby who added that the official announcement would be made at a November news conference.

It is understood that Dubai will pay a $48-million deposit to the world motorsport governing body, the FIA, which would secure their place in the championship.

The UAE venture, under the banner of Team Dubai F-1, has ruled out making a bid for the Jaguar team which has been put up for sale by Ford. Midland F-1, backed by 36-year-old Russian-Canadian businessman Alexander Shnaider, will use cars built by Italian company Dallara. “The car will be built by Dallara and the operations side will be based in England,” Trevor Carlin, who has been appointed as team boss of the Midland F-1 team, told Autosport magazine. “I have got to start building a team now to be ready to run in testing from the middle of next year. “I am very excited about it. Formula One is at a crossroads and from the cost point of view. I am under no illusions over how difficult it will be.

“Mr Shnaider is great and very passionate about the sport and the business will be run very efficiently.” Carlin said the team will be realistic about its objectives.

“Dallara can build a nice, compact, effective F1 car. You are not going to have a Ferrari-beater straightaway, but it will be good if we can nudge the top ten within a year.”

Shnaider’s company, which has interests in Canada, Russia, China and Eastern Europe, said Formula One would be vital for his interests.