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Michael Henderson, a Canadian entrepreneur, has a vision of constructing a replica of the moon measuring 274 meters (900 feet) on a 30-meter (100-foot) building in Dubai, a city already renowned for housing the world’s tallest building and other remarkable architectural marvels. The proposed venture is said to cost approximately $5 billion.
Henderson’s ambitious undertaking, known as MOON, may seem incredibly futuristic, but it could seamlessly integrate into this forward-thinking city-state. Dubai has already established a thriving real estate market, buoyed by affluent individuals seeking refuge from restrictions imposed in their home countries during the COVID-19 pandemic, as well as Russians escaping the conflict between Moscow and Ukraine.
While Dubai has experienced the rise and fall of various ambitious projects in the past, Henderson, along with other proponents, assert that his vision, backed by Moon World Resorts Inc. where he serves as the co-founder, is not as implausible as it may initially appear.
The proposed project by Henderson entails the construction of a destination resort within the spherical structure, offering a 4,000-room hotel, an arena capable of accommodating 10,000 individuals, and a simulated “lunar colony” that would provide guests with the immersive experience of walking on the moon.
The MOON project also incorporates space that could potentially be utilized for a casino. Gambling remains illegal in the UAE, a federation of seven hereditarily ruled sheikhdoms located on the Arabian Peninsula. However, renowned brands such as Caesar’s Palace already exist in Dubai, and others aspire to establish their presence. Wynn Resorts, for instance, has plans to construct a $3.9 billion resort in Ras al-Khaimah, located north of Dubai, including gambling facilities set to open in 2027. This indicates a likely change in the law to accommodate such ventures.
Previously, Moon World Resorts had commissioned artist renderings that explored potential locations for the MOON project. These renderings depicted the MOON situated at various sites, such as the Burj Khalifa, which holds the title of the world’s tallest building, soaring to a height of 828 meters (2,710 feet). Other renderings placed the MOON at the Dubai Pearl, a project that remained dormant for a long time but is now being demolished near the man-made Palm Jumeirah archipelago, as well as on its unfinished counterpart, the Palm Jebel Ali.
The Pearl and the Palm Jebel Ali are remnants of two colossal projects referred to as “white elephants,” which emerged from the financial crisis of 2009, causing significant turmoil in the sheikhdom and necessitating a $20 billion bailout from Abu Dhabi, the capital of the United Arab Emirates.
However, after nearly 15 years, Dubai has largely managed to recover. Average rents throughout Dubai have risen by 26.9% year-on-year, despite the implementation of measures to prevent price gouging. In terms of residential sales, Dubai witnessed an impressive figure of 86,849 transactions last year, surpassing the previous record of 80,831 set in 2009.
According to real estate agency Allsopp & Allsopp, newly introduced properties are being quickly sold out upon launch. Global concerns regarding inflation and rising interest rates have raised fears of a worldwide economic downturn. As the UAE’s currency, the dirham, is pegged to the dollar, it has closely followed the interest rate hikes implemented by the Federal Reserve.
Nevertheless, cash continues to dominate Dubai’s real estate market, with 80% of transactions in 2022 being made without financing, as reported by Faisal Durrani, a researcher at real estate agency Knight Frank in the Middle East.
Meanwhile, progress is being made on other significant projects. Nakheel, the government-owned developer responsible for the Palm Jebel Ali, has revived its development plans for the area. Additionally, the developer has unveiled an ambitious multibillion-dollar proposal to construct 80 resorts and hotels on Dubai Island. Although the man-made island currently has a low occupancy rate and is located beneath the flight path of nearby Dubai, development efforts are still underway.
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