In recent years, leveraged buyout executives scoured the Middle East mainly in search of investors. The hope was to find an oil-rich institution willing to commit capital to a buyout firm’s next fund.Now, private equity executives are headed to the region seeking a lot more: deal partners, shareholders, exit opportunities, lenders. The promise of a lucrative deal, plus red sand camel rides, Lebanese belly dancing and cigar sessions awaits a few LBO chiefs this week in Dubai.

The booming growth of sovereign wealth funds and their search for investments abroad has had a huge impact not just on private equity firms but on the investment banks and the entire mergers and acquisitions industry.

With the funds flush with cash, Western private equity chiefs are courting their business, as a credit crunch across the United States and Europe has dramatically cut off lending and deal-making within their borders.

Private equity executives have been particularly focused on sealing relationships in the Middle East, where the soaring price of oil has left countries loaded with cash to spend.

The global explosion in central bank reserves has led to the growth of state-owned investment vehicles with assets estimated at more than $2 trillion.

The vehicles, so-called sovereign wealth funds, are seeking higher investment returns by taking stakes in companies and investment firms abroad.

The budding, cross-border relationship will be on full display this week in Dubai, United Arab Emirates, where the Super Return Middle East conference will feature some of the biggest names in U.S. private equity. It is the first time the conference, which has been held annually in Frankfurt and Hong Kong, is taking place in Dubai.

David Rubenstein of The Carlyle Group, David Bonderman of TPG Capital, Jonathan Nelson of Providence Equity Partners and Tim Collins of Ripplewood Holdings and other members of large Western buyout firms will be among the featured speakers, along with major investors from Dubai, Abu Dhabi and Qatar.

The speakers will retire to the Bab Al Shams resort in the desert and be treated to camel rides on the red sand dunes, local food and Lebanese belly dancing, according to BusinessWeek, which adds that roof-top cigar smoking is popular among the Dubai’s deal-making crowd.

Stay tuned for stories and blog entries from the conference.