The world's only (self-proclaimed) seven-star hotel, where one night in the Royal suite costs $13,600. An archipelago of man-made private islands designed to look like a map of the World from outer space. (Rod Stewart is rumored to have bought Britain for $33m).
Up next? On 31 January 2008, Christie's, the market leader in jewelry for more
than a decade, will hold its first-ever sale of jewels and watches in Dubai,
followed the next day by an art auction with pictures by top artists from the
Arab world and India. The sales will take place at the Jumeirah Emirates
Towers Hotel.
Dubai is 'an area of the world that is booming right now, that is catering to
the super-rich,' observes François Curiel, chairman of Christie's Europe and
international director of the jewelry department. 'Over the past four years, I
have noticed an increasing number of buyers from Dubai coming to our auctions
in New York, Geneva and Hong Kong.'
Booming Marketplace
Because this tiny Persian Gulf citystate has less oil than its neighboring Emirates, its billionaire Sheikh ruler, Mohammed bin Rashid Al Maktoum, is investing heavily in building a trade, financial and tourist mecca like no other.
In less than a generation, this formerly desert way station has transformed into a glittering, free-spending juggernaut, home to ever-more-gigantic shopping malls (the soon-to-open five million square foot Dubai Mall is billed as the largest on the planet), and host to increasing numbers of well-heeled tourists. In 2006, visitors to Dubai totaled seven million, while the resident population is just 1.2 million.
What luxury purveyor wouldn't want to take advantage of the increasing numbers of international open wallets, especially when there's no sales tax? Dozens have already flocked here, including high-end jewelry brands Cartier, Van Cleef & Arpels, Tiffany, DeBeers and Bulgari. For jewelry in particular, Dubai boasts a tradition as a Middle East trading center in diamonds and gold.
So it's no surprise that top auction houses Christie's and Sotheby's are taking steps to stake out art market outposts here. Christie's was first out of the gate, with a sale of modern and contemporary art in May 2006 that emphasized work from the Arab world, Iran, India and Pakistan. That auction fetched $8.5m. Sotheby's is planning to open an office in Dubai, though no date has yet been set.
Important marketplace
While the auction market surged across most categories last year - Christie's just announced a year-end revenue total of $4.67bn, up 36 per cent from 2005 - the house's jewelry sales grew a hearty 27 per cent in 2006, to $354m.
Fifteen years ago, notes Ralph Esmerian, a prominent New York jewelry dealer and collector, collectors from the Arab world, primarily from Kuwait and Saudi Arabia, were big players in international jewelry auctions. Conflicts in the Gulf dampened demand for a time. Now that Dubai has emerged as a commercial centre, it makes sense for the auction houses to move into the region.
'This is a step that must be taken,' says Esmerian. 'Dubai is an important marketplace.'
One factor driving today's jewelry market, observes Curiel, is a growing appreciation among collectors of jewelry as an art form unto itself.
This is exemplified by the intense bidding on pieces by top designers such as the reclusive, exclusive American-born Parisian designer Joel Rosenthal known as JAR, who makes one-of-a-kind pieces by appointment only.
In New York, at Christie's sale of actress Ellen Barkin's jewels in October, a pair of JAR earrings soared to $710,000, a whopping $630,000 over the high estimate.
The cover lot of the Dubai sale is a pair of wildly original diamond JAR earrings made in 2005. Pavé diamond threads crisscross to form teardrop-shaped cages that each hold a thin rectangular diamond with rounded edges. Rosenthal favours older stones, and the two large diamonds come from a pair of 18th-century brooches he picked up in London.
Catering for the Dubai market
While JAR stirs interest among jewelry collectors everywhere, Christie's is catering to the Dubai market in this sale. 'This is primarily modern, glitzy jewelry, reflecting a contemporary, with-it spirit,' observes Esmerian.
'This is a sophisticated clientele who wants to buy important, quality, fashionable signed pieces,' notes Curiel, who will be manning the gavel in Dubai. 'We made a special effort to pursue collectors of contemporary jewels because Dubai is so sexy and hot at the moment.'
In addition to JAR, the auction includes pieces by contemporary jewelers Carnet of Hong Kong, Bhagat of India and Margherita Burgener of Italy.
Christie's is also selling 21 bejeweled timepieces in this auction. 'Diamond-studded watches are doing extremely well in the Middle East and all over Asia,' maintains Curiel. The sale's total estimate: $8m-$10m.
Who will be raising their paddles? In a public auction, the answer is always a mystery until the gavel drops. 'At our last Dubai auction there were a lot of clients from India and the whole region,' says Curiel. 'We hope all those clients will be coming back this time.'
