Mohammed Ali Alabbar, who is one of the Gulf's most prominent businessmen as well as a government official in the United Arab Emirates, has found himself mired in controversy after reports that he met Ariel Sharon, Israeli prime minister,in Jerusalem last week.

Arab media have pounced on reports, first aired on an Israeli television station, claiming that Mr Alabbar offered Mr Sharon $56m for settler properties that would otherwise be demolished as part of the Israeli withdrawal from the Gaza Strip later this year.