Nakheel, the property arm of Dubai World, and the Trump Organisation today began receiving bids for the most expensive penthouse for their new Trump Tower on the Palm Jumeirah project.

The tower, which will house a hotel and apartments, has seen pre-sales of some of the properties sell for up to $3,000 per square foot.

The project is due to be completed in the summer of 2011, and comprise two separate towers which join at the fortieth floor to create a diamond shaped pinnacle.

The development forms part of a boom in construction in Dubai which includes the Burj - the world's tallest man-made structure - that is expected to be habitable next year.

Dubai, along with its other Gulf state neighbours, are flush with capital - petrodollars - derived from it hydrocarbon receipts. The six Arab economies last year took $400 billion in such receipts, much of which has been invested in infrastructure projects, office buildings, hotels, and apartments. Dubai itself is seeking to transform itself into a major financial centre - with banks such as Citigroup so convinced of the opportunities there, it moved one of its two co-heads of investment banking to Dubai.

Sultan Ahmed bin Sulayem, Nakheel's executive chairman, said: "Nakheel and Trump together will bring a breath taking structure to Palm Jumeirah. It is no surprise that we have broken sales records in Dubai."

Nakheel owns properties worth around $80 billion with about $20 billion invested outside the United Arab Emirates. It also owns a project off the Dubai coastline called The Universe which has reclaimed land shaped in the map of the world. Rod Stewart, the rock singer, is understood to have already purchased the island that represents Britain.

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