The Emirates Palace, an extravagant fusion of marble, gold and crystal that cost hundreds of millions of dollars, is the most obvious sign that Abu Dhabi is catching the Dubai fever. Designed as an ultra-luxurious Arabian palace, it is also Abu Dhabi's seven-star answer to the Burj al-Arab, the sail-shaped hotel tower that helped put Dubai on the map as a tourist attraction.

Awash with cash from soaring oil prices, the traditional and cautious Abu Dhabi, the largest and richest of the seven city-states making up the United Arab Emirates, is slowly adopting a more adventurous path. The interest in profligate landmarks belies a more substantive strategy aimed at diversifying the oil-based economy and preparing it for a downturn in oil prices.