AIRSHOW-UPDATE 1-Arms race dominates Dubai air show

* Gulf region leads global race for new fighter jets

* U.S. to showcase F-22 fighter plane

* Ethiopian Airlines to confirm $2.9 bln Airbus order * Air Austral ushers in airliner travel with over 800 seats

(Adds expected Air Austral order, details)

By John Irish and Tamara Walid

DUBAI, Nov 15 (Reuters) - Middle East tension is driving demand for military hardware at the Dubai Air Show which opened on Sunday, but recession means fewer orders for civilian jets.

Airbus (EAD.PA) looked set to bag $3.5 billion in airliner orders early in the show -- including the first for an 840-seat version of its A380 superjumbo, the world's biggest passenger plane.

But it was the Gulf region's role as the world's busiest arms market that dominated day one of the largest Middle Eastern showcase for aviation.