I made no bones of my dislike for the Q7, and was quite prepared to do the very same for the latest SUV from Audi, the smaller Q5. But whereas the enormous inelegance of the Q7 caused an even bigger divide of style opinion, the Q5 sort of saunters by unnoticed - which is a good thing. Learning from their Q7 errors, the styling of this smaller SUV is inoffensive, low-key, and somewhat conservative. There are some obvious styling cues taken from the likes of the X3 and the Cayenne, which altogether make for a neat package - and if it were not for the large grille and LED eyebrow lights I feel the Q5 could quite possibly slip under the radar without ever being noticed, with its rather ordinary appearance.

As of now Audi have not announced a price for this region, so it is hard to say if we'll be getting a bargain or not. What we have been told though, is that 18 inch alloy wheels, leather interior, three-zone climate control (which Audi claims is 20 per cent less power hungry than its rivals) and Xenon plus LED lights should come as standard for this market. It wouldn't surprise me if the bulk of orders are of SE specification too, which means rear acoustic parking and full body coloured bumpers. By the time of its release here in the Middle East, in 2009, the 3.2-litre petrol-engine quattro will be available, alongside the responsive 208bhp turbocharged 2.0-litre version. Audi's four-wheel drive Quattro and all new seven-speed dual-clutch S tronic transmission is fitted to both these models as standard.

Another standard is the S tronic transmission. In contrast to most automated manual gearboxes, the S tronic truly does offer a new level of smoothness, accompanied by swift reactions under full throttle, especially when using the paddle-shifter where the S tronic actually determines whether or not you are driving with any conviction and in response will supplement your committed driving with rev-matched downshifts.

That said, the Q5 isn't entirely the most rewarding car to drive, but the new Audi is a fairly sharp and tidy handling car. It has a comfortable enough ride and, surprisingly enough - great body control, even when pushing on hard in the corners. It almost amazes me how well SUVs handle these days, with car-like attributes and feel. I would hazard a guess that the Q5 wins hands down in the comfort stakes, against the likes of say the X3 from BMW and, in terms of its other rival (the LR2) again the Q5 wows with its refinement and smooth handling. The Q5 really is a far better product in terms of build quality too, but there are a few nit-picks. For starters, on a day-to-day basis the Audi Q5 does suffer from a lack of steering feel, and a tendency to understeer on the limit, but again these are minor criticisms for what is - at the end of the day - a capable off-road machine designed more for rocky extremities rather than super smooth cornering on tarmac, even though it does take the road bit in its stride. Needless to say, it is a remarkable achievement for a lofty SUV, with very few sacrifices - leaning your impression more towards a capable estate car than a big SUV: say an A4, albeit one that sits 198mm off the ground.

It actually feels like an A4 inside too - near enough identical - borrowing the same high-quality interior plastics, fabric, leather and wood. This alone stands the Q5 head and shoulders over the cheap cabins of its class competitors. There is also the ability to equip the Q5 with a panoramic sunroof, the expanse of light adding even more feel of space to an already roomy car, for those in the front and the rear.

Overall the styling of Audi's long-awaited BMW X3 and Land Rover LR2 competior is a touch on the forgettable side, but from behind the wheel the Q5 drives very well indeed, is beautifully engineered, well built, refined as most Audis are, and capable of carrying four adult passengers in comfort and at pace; the latter economical and low emitting without sacrificing performance. It's not likely to be cheap, as mentioned before, especially when you start adding a few options, but almost everything about this car feels upscale enough to justify what you'll end up paying for it - no doubt promising to be a very strong competitor in the premium compact SUV market.