Christmas is widely celebrated in Dubai. Wafi is usually the best decorated mall & they even have a Santa's grotto. A couple of years ago I went here one evening a few days before Xmas and there was a school choir, made of of many nationalities, singing Xmas songs too.
Many of the hotels have special Xmas lunches and you can even order in a full Xmas lunch if you don't feel like cooking yourself. The weather is usually excellent at the end of December and I even spend part of it in the beach a couple of years ago.
Personally, I love Xmas in the sun and have no wish to be in the grey and cold UK for it.
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Column in The National newspaper 21/11/09: http://tinyurl.com/ykqccqb
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