Arab island resorts are reshaping geography
United Arab Emirates building 'The World' and other enclaves

Nakheel via AP

Updated: 11:40 a.m. ET March 8, 2005
DUBAI, United Arab Emirates - From the air, it's an astonishing sight: two gigantic palm trees fallen flat on the sea, which on closer inspection turn out to be an intricate network of manmade islands.

And beyond the palms there's more — 300 artificial islets laid out like a map of the world. There's France, Florida, Ohio, even a mini-Antarctica baking in the 80-degree heat.

The $14 billion project that is reshaping this segment of the Persian Gulf coast is the world's largest land reclamation effort and the focus of one of its most fanciful land rushes. It's also part of Dubai's ambitions to rival Singapore and Hong Kong as a business hub, and Las Vegas as a leisure capital.

The wealthy are already snapping up the homes on offer, even though few have been built, none has been occupied, and some exist only on maps of what is still open sea.

Even so, nonexistent properties are being sold and resold at serious premiums.

"We have watched it from the beginning. It has just been extraordinary," said Brian Scudder of Oryx Real Estate, a Dubai firm. Scudder said the properties, listed at $780,000 to $1.4 million, have doubled in price since hitting the market in May 2003.