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Dubai: Sinking fund

2009 has undoubtedly been an annus horribilis for Dubai - not only has the once glittering empire been hit hard by the global credit crisis and the billions of dollars of debt, now comes news that one of its most iconic developments could be sinking into the sea...

Dubai had the midas touch when it came to property developing - everyone from CEOs to celebs wanted a slice of the action and the emirate grew at an alarming rate.

Until that is, it all came crashing down when the credit crunch first started to darken our doors.

Such over enthusiastic development during a boom always leaves a rather vulnerable position once the bust comes along - and Dubai has learnt that the hard way, now struggling to cope with billions of dollars of debt.

And here comes the final nail in the coffin - developing giant Nakheel's flagship project, Palm Jumeirah, looks as though it is sinking into a watery grave - literally.

The £12 billion man-made island extends five kilometres into the Arabian Gulf and is sinking by an average of five millimetres each year.

European ground survey company Fugro NPA has predicted that the iconic resort could flood in the future if sea levels rise, something they are predicted to do thanks to global warming.

This is not good news for David Beckham et al, who have invested some of their celebrity millions into the project, which is also home to the Atlantis Hotel, a $1.5 billion resort which boasts an underwater aquarium, waterpark, and 1539 rooms including a $26,000-a-night suite.

Whilst this seems to be the latest blow for an already struggling emirate, the claims have been strongly denied by developer Nakheel, who says the information about the resort sinking is ‘wholly inaccurate.'

Shaun Lenehan, head of Nakheel's environment department, said, "The Palm is intact. If there were subsidence, even as little as 5mm, this would generate obvious physical manifestations including masonry cracking, leaking pipes, broken windows and so forth.

"We have no evidence of that happening," he added.

But Adam Thomas, InSar surveying project manager at Fugro said they stand by their measurements.
"We're seeing a number of locations where the ground is moving downwards.

"In future, sea levels are predicted to rise and if this goes on then it could pose a flood risk," he said.

Picture by everystock