Dubai: The new gold rush

Mike Hegedus Special Features Correspondent • Profile

Dubai — the most explosive economy on the planet — is about the size of Rhode Island but has the fiscal appetite the size of North America.

You've probably seen pictures, read stories, but you haven't really 'seen' Dubai until you've seen the Burj Al-Arab, a 321-meter tall luxury hotel with 202 duplex suites of pure opulence on the Persian Gulf, acknowledged by jet setters as the world’s only seven-star hotel. Or the Palm Jumeirah Development that is large enough to be seen from the International Space Station. It was built by dredging from the world's largest salt water port and will soon support 32 luxury hotels, villas, apartment complexes and about 70,000 people. These are two very impressive sites, but they are old news in the new Dubai.

Dubai, one of the seven United Arab Emirates on the tip of the Saudi Arabian Peninsula, is a moderate Muslim country that in the last five years has sprouted buildings like towering stalks from magic beans.

“There were two buildings when I moved here in August of 2004, and that is no lie. Those two buildings and nothing else existed,” said Mark Chapleski, managing director of Troon Golf, the Arizona-based world leader in luxury golf development, management and marketing. The company expanded its global operations to include new offices in Dubai in 2004.

Nearly 20 percent of the world's supply of construction cranes works day and night, round the clock, seven days a week on hundreds of billions of dollars worth of projects.

CNBC SPECIAL REPORT Part I: Dubai: The new gold rush Part II: An American businessman in Dubai Part III: U.S. firms seek piece of Dubai pie

“It's human nature. We want to top ourselves. We want to come up with that next big thing,” said Fatollah Shahen of Capital Partners, a company that specializes in acquisition and development of innovative real estate assets.

Plans are afoot to build two more developments similar to the Palm Jumeirah and the Burg Dubai will soon be the world's tallest building in the center of a complex that will include the world's largest shopping mall.

“You know it's incredible. When you come in here, you see an incredible amount of cranes, you see vibrancy, you see energy. I'd say it's like the gold rush,” said Allen Liebman, President of Kerzner International, a company that develops and operates luxury resorts.

Beat the heat
And if it gets a little hot in the 114 degree heat, you can head to Ski Dubai, a half-mile run connected to a shopping mall that will just have to do until they build a whole ski village and mountain indoors — which they are.

But if you just want to live sports, there is no place like Dubai Sports City, a $3 billion project. Four years from now this lonely piece of sand will house five sports stadiums, an 18-hole golf course, apartment buildings and villas. About 70 percent of it is already sold.

“Dubai Sports City is a 50 million square foot metropolis built on sports as a viewership, sports as participation, sports as education, sports as well being, sports as a lifestyle. It's a city within a city,” said U. Balasubramaniam, CEO of Dubai Sports City.

“The one thing you have to give Dubai specifically credit for is they deliver on the promises. The idea that they'll have the tallest tower, the three largest malls in the world, they'll have the largest hotel in the world with 6,500 rooms. No, they're going to deliver against it. As long as the security stays the same, the people will come,” said Lou Scotto, President of American Business Council, a nonprofit association that promotes the development of commerce and investment between the United States and Dubai.

MORE FROM CNBC TV

CNBC TV Section Front

CNBC: Two economic bubbles defined his life CNBC: Google searches for mobile edge CNBC: Coke looking for the next real thing CNBC: GE in talks to spin off NBC Universal Battle over wages brews at Wal-Mart CNBC report: Ultimate Fighting CNBC Special Report: As Seen On TV Special Report: Cruise Inc. Buffett: The economy has ‘fallen off a cliff’ CNBC on the new black overclass CNBC TV Section Front   Add CNBC TV headlines to your news reader: