The World, a development in Dubai consisting of an archipelago of islands in the shape of the world's continents, is sinking into the sea and mired in contractual difficulties.

According to evidence cited before a property tribunal and discovered by the Telegraph, "erosion and deterioration" of the World has been found, with state-run developer Nakheel admitting that the project is "in a coma". Graham Lovett, speaking on behalf of Nakheel in the tribunal, said: "This is a ten-year project which has slowed down," but maintained: "this is a project which will be completed."

Nakheel is part of Dubai World -- the conglomerate owned by the gulf state -- which was bailed out of $25 billion worth of debts at the end of 2009. The tribunal was set up to hear the cases that emerged from the separation of the companies involved. One of those companies is Penguin Marine, who bought the rights to offer boat travel to the islands -- of which all but one are uninhabited. (Greenland, if you're curious.)


Although Nakheel claims that 70 percent of the islands have been sold, investors have had trouble financing any further work. As a result, while Penguin Marine is paying a million dollars a year to Nakheel, it's getting very little business, so is trying to exit the contract.

Penguin claims that work on the islands has "effectively stopped", with Richard Wilmot-Smith, speaking on behalf of the company, telling judges in the tribunal that the islands' sands are

eroding and that the channels between them are silting up.

Nakheel disputes this, saying: "Our periodical monitoring survey over the past three years didn't observe any substantial erosion that requires sand nourishment."

The ultimate fate of the World rests both with the court and the Gulf state's economy. If Dubai can recapture some of its glory, then perhaps the World will live again. If not, it'll slowly sink below the waves once more.