Dubai opened the world's tallest skyscraper in a glitzy ceremony this evening that was meant to put a brave face on crushing debt woes.
The £1billion tower reaches 2,717 ft, 200 storeys into the sky, exceeding the next highest structure by some 1,000 ft.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum renamed the tower Burj Khalifa after the president of the United Arab Emirates and the ruler of the neighbouring emirate of Abu Dhabi, Sheikh Khalifa bin Zayed al-Nahayan.
Abu Dhabi has facilitated $25 billion in bailout funds for Dubai in the past year, fuelling expectations that Dubai will make concessions or cede some of its commercial power to its wealthier neighbour.
Concerns about Dubai's $100-billion debt pile, which has made Dubai's stock exchange one of the world's worst performing, overshadowed both the ceremony and boasts by the builder, Emaar Propertie, that the Burj heralds a new dawn.
The £1billion tower reaches 2,717 ft, 200 storeys into the sky, exceeding the next highest structure by some 1,000 ft.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum renamed the tower Burj Khalifa after the president of the United Arab Emirates and the ruler of the neighbouring emirate of Abu Dhabi, Sheikh Khalifa bin Zayed al-Nahayan.
Abu Dhabi has facilitated $25 billion in bailout funds for Dubai in the past year, fuelling expectations that Dubai will make concessions or cede some of its commercial power to its wealthier neighbour.
Concerns about Dubai's $100-billion debt pile, which has made Dubai's stock exchange one of the world's worst performing, overshadowed both the ceremony and boasts by the builder, Emaar Propertie, that the Burj heralds a new dawn.
Blast off: More than 6,000 guests watched as the world's tallest skyscraper was officially opened with a spectacular fireworks display
'The worry for Dubai is that the event will be remembered as a second bout of hubris,' said David Butter, regional director for Middle East and North Africa at Economist Intelligence Unit.
The first bout was in November, 2008, two months after the collapse of Lehman Bros, when Dubai spent $24 million on the opening ceremony of the Atlantis Hotel, an event that did more to highlight a taste for extravagance than assuage fears that the economic crisis was not being taken seriously.
Emaar says property prices have now stabilised, confounding wider expectations for stress in the sector.
'You have to ask, "why we are building all this?" To bring quality of life and a smile to people and I think we should continue to do that,' said Mohamed Alabbar, chairman of Emaar, the Arab world's largest listed developer.
'Crises come and go,' Alabbar said. 'We build for years to come ... We must have hope and optimism.'
The first bout was in November, 2008, two months after the collapse of Lehman Bros, when Dubai spent $24 million on the opening ceremony of the Atlantis Hotel, an event that did more to highlight a taste for extravagance than assuage fears that the economic crisis was not being taken seriously.
Emaar says property prices have now stabilised, confounding wider expectations for stress in the sector.
'You have to ask, "why we are building all this?" To bring quality of life and a smile to people and I think we should continue to do that,' said Mohamed Alabbar, chairman of Emaar, the Arab world's largest listed developer.
'Crises come and go,' Alabbar said. 'We build for years to come ... We must have hope and optimism.'
A number of the higher floors - up to the 160th - have been designated as office space, while there is a restaurant on the 122nd floor and a gym, with an indoor and outdoor swimming pool, on the 123rd floor - some 1,440 feet off the ground
The complex of apartments, offices, shops, restaurants, a mosque, gym, nightclub and Giorgio Armani-designed hotel, was designed to the brief that residents need never leave.
Everything they could possibly need is supposedly provided.
The hotel takes up the first eight floors with suites on the 38th and 39th. Residential apartments go up to the 108th floor – at about 1,300 feet.
A number of the higher floors – up to the 160th – have been designated as office space, while there is a restaurant on the 122nd floor and a gym, with an indoor and outdoor swimming pool, on the 123rd floor – some 1,440 feet off the ground.
On the 124th floor is the world's highest observation deck. The Burj Dubai is also intending to host the world's highest nightclub – on the 143rd floor.
Guests watched in awe at the opening ceremony, which took place despite the building not yet being finished inside
The Burj was designed to show off Dubai's new wealth and industrial might
Over the last three decades Dubai has witnessed a massive surge in cash. Developers backed by new money invested heavily - turning the once struggling desert city into a sprawling metropolis of lights and plush buildings.
The city is now dealing with a real estate crash as the borrowed money needed to make the Dubai dream come true continues dries up.
While development still surged forward at the Burj Khalifa, it was made possible only by gigantic billion dollar bailouts from rich United Arab Emirates cousin Abu Dhabi.
And on the day of its official completion, interested parties face further problems. All of the apartments are said to have been sold but its still a mystery who will eventually move in. There is also said to be little interest in new Dubai office space. Developers still say that their vision will come true.
But as the city celebrates, the building is mainly vacant and could leave officials red-faced on Monday.
Even though many of the building's 200 stories are unfinished, organisers are celebrating the launch with an arsenal of fireworks.
The city is now dealing with a real estate crash as the borrowed money needed to make the Dubai dream come true continues dries up.
While development still surged forward at the Burj Khalifa, it was made possible only by gigantic billion dollar bailouts from rich United Arab Emirates cousin Abu Dhabi.
And on the day of its official completion, interested parties face further problems. All of the apartments are said to have been sold but its still a mystery who will eventually move in. There is also said to be little interest in new Dubai office space. Developers still say that their vision will come true.
But as the city celebrates, the building is mainly vacant and could leave officials red-faced on Monday.
Even though many of the building's 200 stories are unfinished, organisers are celebrating the launch with an arsenal of fireworks.
Half a mile high: the tower was tarted at the height of the economic boom and built by some 12,000 labourers
The shadow of Burj Khalifa is seen from floor 124 of the Burj, the supertall skyscraper during a media tour in Dubai
A company employee, who asked to remain anonymous, said: 'The inauguration ceremony is to tell the world that we have finished it.
'What has been done is meeting the individual customer's needs. We have met the contracted agreement. Since it started it has continued at one floor being built every week.
'The dates are not confirmed yet but at present we will hand over the residence suites on March 22, the Armani Residences on January 17 and the corporate suites on March 1.'
Investors took little heart from today's opening with Emaar shares closing down 3.4 pe rcent, pulling Dubai's broader index 2.6 per cent lower.
'This is the culmination of Dubai's momentum and not just Emaar's,' said Saud Masud, UBS head of research.
'It is probably the end of Dubai mega projects for the next several years as the emirate tries to rationalise its resources and looks to build the economy again in some way or another.'
In a sign Dubai is trying to meet its obligations, DP World, a subsidiary of state-owned holding company Dubai World, said it had paid obligations tied to a sukuk and a bond issue on time
Dubai sent shockwaves through global markets on November 25 when it said it would request a standstill on billions of dollars of debts linked to state-held holding firm Dubai World and its property units Limitless and Nakheel, developer of three palm-shaped islands.
Dubai World is expected to pitch a formal standstill proposal on its debt payments to creditors this month, while it comes up with a restructuring plan. - www.dailymail.co.uk
'What has been done is meeting the individual customer's needs. We have met the contracted agreement. Since it started it has continued at one floor being built every week.
'The dates are not confirmed yet but at present we will hand over the residence suites on March 22, the Armani Residences on January 17 and the corporate suites on March 1.'
Investors took little heart from today's opening with Emaar shares closing down 3.4 pe rcent, pulling Dubai's broader index 2.6 per cent lower.
'This is the culmination of Dubai's momentum and not just Emaar's,' said Saud Masud, UBS head of research.
'It is probably the end of Dubai mega projects for the next several years as the emirate tries to rationalise its resources and looks to build the economy again in some way or another.'
In a sign Dubai is trying to meet its obligations, DP World, a subsidiary of state-owned holding company Dubai World, said it had paid obligations tied to a sukuk and a bond issue on time
Dubai sent shockwaves through global markets on November 25 when it said it would request a standstill on billions of dollars of debts linked to state-held holding firm Dubai World and its property units Limitless and Nakheel, developer of three palm-shaped islands.
Dubai World is expected to pitch a formal standstill proposal on its debt payments to creditors this month, while it comes up with a restructuring plan. - www.dailymail.co.uk
Besides an observation deck on its 124th floor affording 360-degree views of the entire city, Burj Khalifa is home to the world's first Armani Hotel, luxury offices and residences
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