(FORTUNE Magazine) – There's no such thing as too much waterfront property, especially in Dubai. As part of the tiny state's drive to become a tourist hot spot, the government is working with a private developer to build two palm-shaped islands that jut into the Persian Gulf--the only man-made islands large enough to be seen from the moon. Last month the $2 billion foundation for the first isle was completed, using enough sand and rock to construct a wall 6.5 feet high and 1.6 feet thick around the globe three times. Besides malls, spas, and clubs, the island will have 17,000 hotel rooms, 2,200 apartments, and 1,800 villas (which cost up to $1.3 million and will be ready in 2005). Future residents include soccer star David Beckham and other international glitterati, but all the lots are sold, so newcomers will have to settle for the second island, due to be completed in 2007. --Paola Hjelt