Dubai's ruler has approved a 1.6 billion US dollar island development project that would be home to what is billed as the world's biggest Ferris wheel.

The project reflects a renewed appetite in Dubai for extravagance as the economy rebounds from a debt-driven slump during the past three years.

The official WAM news agency said that the Ferris wheel - dubbed the Dubai Eye - will stand 210 metres (688 feet) tall, exceeding the London Eye's 135 metres (443 feet). Construction is set to begin this year.

Dubai has proposed a series of mega projects reminiscent of the boom years in the United Arab Emirates before the downturn hit in 2009.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.