- [Narrator] Dubai is one
of the world's hottest tourist destinations,
known for its outlandish wealth, skyscrapers,
luxury shopping,
and expensive cars.
It gained enormous wealth
with the development of the country's rich oil resources.
However, as the world moves towards a greener future,
Dubai has shifted its focus
towards creating a city so famous,
that people from all over the world would flock to it.
With ambitious structures like the Burj Al-Arab,
the world's only seven star hotel,
and the Burj Khalifa,
the world's tallest building,
Dubai has established itself as a leader
when it comes to innovative architectural projects.
Central to these plans are Dubai's man-made islands.
These islands are seen
as one of the world's most ambitious engineering projects,
and to date, only Palm Jumeirah has been fully developed.
The other islands have only been partially developed,
or the project has been shelved altogether.
But why?
Why would the development that plays such a central role
in Dubai's future all of a sudden grind to a halt?
We will take a look at this engineering masterpiece,
and explore why progress stops
and what lies ahead
for the world's most famous man-made islands.
The islands.
Dubai's man-made islands were first envisioned
by Dubai's ruler,
Sheik Mohammed bin Rashid Al Maktoum.
Sheik Mohammed,
along with Nakheel Developments,
who produced ambitious plans
to transform Dubai's coastline
into an engineering work of art.
This plan would generate enormous wealth for the emirate,
reducing their dependence
on their already diminishing oil resources
and would involve the construction of three islands,
that when viewed from above,
would resemble the shape of a palm tree.
The islands were created by a process of land reclamation,
where sand is dredged from the sea floor
and built-up in a new location to create a man-made island.
Heavy rocks were used to create a breakwater,
which is designed to absorb the impact of waves
and protect the man-made islands from beach erosion.
The most famous of the islands is Palm Jumeirah,
which is the only island
that has been fully developed to date.
It is home to some of the world's most expensive homes,
luxury shopping malls,
and the mesmerizing Atlantis Hotel.
The other islands are Palm Jebel Ali and Palm Deira,
both much larger and more complex
than the initial Palm Jumeirah.
In addition to the Palm islands,
the developers plan to redevelop Dubai's waterfront
in what would be the largest man-made development project
in the world.
Known as the Dubai waterfront,
it would consist of a group of islands
that form a star and crescent,
which in the Islamic world is a symbol of great importance.
Other iconic projects scheduled for development
included the The World and the Universe.
A group of man-made islands
that resembled all of the countries in the world,
as well as the sun, moon, and the Milky Way.
These jaw dropping projects captured
the world's imagination,
and no one was in doubt that Dubai's future looked magic.
Why work stopped.
Construction of Palm Jamira began in 2001
and was completed in 2006.
Despite some initial concerns around beach erosion
and its impact on the environment,
it is largely seen as a major success story.
Soon after construction started in October 2002
of Palm Jebel Ali,
The Worlds 300 islands began in 2003,
and construction work of Palm Deira started in 2004.
Investors looked on with excitement
as the world's economy experienced
never seen before growth,
and few people foresaw what was around the corner.
However, as 2008 drew to a close,
the world's financial crisis was well underway
when the world's banking system collapsed,
sending shock waves around the world.
The financial crisis hit the real estate market
particularly hard,
and the real estate prices
on Dubai's Palm islands dropped dramatically.
Dubai strived to maintain its glowing image
when the Atlantis Hotel
on Palm Jumeirah celebrated its opening
with a $20 million firework show.
It was reported in the world's press,
"Dubai parties as the rest of the world reels
from the economic crisis.
Perhaps not anymore."
Investors were beginning to realize
that the artificial island projects were in serious jeopardy
and billions of dollars in investments were at risk.
Demand declined rapidly on Palm Jebel Ali,
where luxury villas sold for around $4.5 million dollars,
and work soon after grinded to a halt.
The island was expected
to house around 1.7 million people by 2020.
However, in 2011,
Nakheel Properties began offering investors a refund.
Dubai's waterfront,
albeit not at such an advanced stage,
was put on hold,
and plans for Palm Deira were rebranded
with the project being scaled down.
Instead of constructing the palm-shaped island,
four islands along the original coastline
now make up what is known as Deira Islands.
The Deira Islands are a shopping, retail,
and housing development with a luxury waterfront.
It included prominent development,
such as the Deira Night Souk, Deira Mall,
and Deira Island Towers and Boulevard.
An impressive project in its own right.
However, a very much scaled-down version
of the original vision.
The land reclamation of The World
for the most part is complete,
and many of the islands mimicking the shape of The World
have been sold.
But investors have not progressed with development plans,
and the majority of the islands remain untouched.
Only two islands were developed in The World,
the first was developed as a show home
for potential investors
and the other was Lebanon Island,
which is the only island currently used
for commercial purposes.
All of the other 288 islands are not in use.
The much anticipated project,
The Universe,
which was to be located
between Palm Jumeirah and Palm Deira,
was put on hold indefinitely,
and it is unknown,
whether Nakheel Developments will try to revive the project.
Other concerns.
Investors' confidence
in the future of the project quickly diminished,
and the reality that the islands were not going
to deliver a return on investment hit hard and hurt many.
The world's media began focusing
on other concerns with the islands,
for example, there were many reports that the beach erosion
and rising sea levels posed a real risk
to the structural integrity of the islands.
Environmental campaigners were quick to point out
the negative impact on aquatic life
and that the quality of water was poor,
particularly at Palm Jumeirah.
On top of this, the poor working and living conditions
of migrant workers in Dubai came under the spotlight.
All of which makes the job of marketing a project
with such prestige,
very difficult.
More recently, projects that are now being marketed
have taken into consideration
the concerns around environmental sustainability
and labor rights,
and countermeasures have been put in place
to appease the concerns of investors.
Current state of the islands.
Does all this doom and gloom spell the end
for Dubai's man-made islands?
Despite the financial crisis,
Dubai maintained its position
as one of the top tourist destinations
and business hubs in the world.
Nakheel Developments continue to post record profits,
and the company was reported to have said,
"Construction of more hotels and resorts is in full swing
under Nakheel's strategy of bringing new
and diverse tourist offerings to Dubai
as a part of the government's tourism vision."
The claim that the global financial crisis
only temporarily halted the construction
of the palm islands,
however, investor trust and funds are needed
if the islands are to progress.
We don't think it's the end for the islands,
however, investor confidence was severely shaken.
It may take some time for investors to develop the appetite
to begin building again.
The most positive sign that there is hope for the islands
was the announcement in 2014
by an Australian real estate investor,
that they plan to develop the European islands.
Kleindienst Group will invest over $5 billion
in a project known as the The Heart of Europe.
It will include Swedish beach palaces, German villas,
a Portofino Hotel experience,
and a Cote d'Azur Resort.
You can expect outlandish ideas,
such as the world's first underwater hotel and spa,
and an artificial rainy street,
a fully dedicated hotel for weddings,
which no doubt,
will push the boundaries of luxury and entertainment.
In addition to this, another island was developed
in the South American region of The World,
called Anantara World Islands.
This resort opened in February 2022,
consisting of 70 suites and villas
with a Thailand inspired spa,
an open-air cinema,
and a floating lounge.
Anantara offers incredible views of Dubai's main city
and provides guests with privacy and seclusion,
that is, perhaps, unavailable
in many of Dubai's other resorts.
Dubai's palm islands are very much open for business
and Nakheel Developments actively engaging investors.
Whilst it may be some time before the islands are complete,
it is hoped by many that these developments
will be the spark that ignites investor interest
in Sheik Mohammed's original vision
and continue to boost Dubai's position
as a tourist powerhouse.