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Man-made resort islands several kilometers long? An underwater hotel? A perfect replica of Elvis' Graceland? O.K., we made the last one up, but Dubai, the playground of the Persian Gulf, is developing a number of omigod attractions that combine wow factor with more than a hint of surrealism, all to capitalize on its burgeoning status as a short-break hot spot.

"It's a dream come true," says Hamza Mustafa, a sales executive at the city's Palm resort. "Ideas here become reality." Made up of two reclaimed islands in the shape of 7-km-long, stylized palm trees, the resort is the quintessential icon of the new Dubai: grandiose, opulent and implausible. The development has used 100 million cubic meters of sand and rock, and with each island featuring 17 narrow arms, they will add a total of 120 km—or 166% extra—to the emirate's shoreline. This also marks the first time that foreigners can own homes outright in Dubai, and the international glitterati (the Beckhams reportedly among them) have lost no time snapping up ready-made holiday mansions by the score.

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If you like the way Dubai looks on land, why not try it underwater? Scheduled for completion in late 2006 is the Hydropolis, the world's first undersea hotel, situated at a depth of 20 m and about 300 m from the shoreline.

If it sounds like something from the pages of Jules Verne, that's because it more or less is: a tunnel and train will carry guests to the 11-hectare property, which will feature a "floating" ballroom, a cinema, three restaurants and a spa. It will even generate its own surface mist, helping to regulate the complex's internal temperature.

And if you want more than just waterworld, how about the World? To be located 5 km off the coast, this development will consist of several reclaimed islands that will form a map of the world when viewed from above. The islands will also be themed to show similarities to the regions they're meant to represent.

Sound extravagant? You ain't seen nothing yet. Dubai's Crown Prince, Sheik Mohammed bin Rashid Al Maktoum, says he has achieved "only 10% of my visions for Dubai." How about that monument to Elvis?

• Anne Marie Ruff
• Dubai's new tourism developments are wackier than any theme park