The magnificent Pearl Carpet of Baroda has earned a pretty incredible price at Sotheby's in Qatar. It sold for $5.5 million, a record for a rug. The 5-foot-8-inch by 8-foot-8-inch carpet was originally commissioned by the maharajah of the former Indian state of Baroda and is exquisitely stitched with more than a million tiny seed pearls, rubies, sapphires and diamonds on a base of silk and deer hide. The previous record for a rug was set last year by a 17th-century Persian silk Isfahan rug that had belonged to the U.S. collector Doris Duke which sold for $4.5 million.

Jean-Georges Vongericthen has become the latest high-profile chef to take restaurants to the Middle East. Culinary Concepts by Jean-Georges has announced the opening of Spice Market and Market by Jean-Georges at the new W Hotel Doha. The restaurants are part of a partnership with Starwood Hotels & Resorts and represent the chef's first foray into the Middle East. "Doha is a region full of exotic spices and rich delicacies and I'm eager to infuse some of the signature dishes found at Spice Market and Market with the indigenous flavors of the region and a wealth of new ingredients," said Vongerichten. He also blogged about the experience last week.

Vongerichten is famous for eschewing the use of meat stocks and using vegetable juices and fruit essences for a light and fresh flavor. His most recent cookbook focuses on his love of Asian flavors. The decor for Spice Market at W Hotel Doha includes handcrafted screens and a series of clustered bespoke lanterns. Jean-Georges Vongericthen will be in good celebrity chef company, Nobu is also opening up a restaurant in Doha at the Four Seasons next year.

Once the undisputed land of conspicuous wealth and consumption, the United Arab Emirates is being squeezed by a large drop in oil prices. It's a shame this comes after the region's addiction to art has become fully entrenched. Sotheby's is planning its first contemporary art sale from its new Doha, Qatar branch on March 18, 2009 – also the opening day of the Art Dubai fair. Hell, it's enough to make you "scream" (see photo).

This looks like the triumph of ambition over common sense, but Sotheby's was probably too far into its Middle Eastern endeavors before the bottom fell out on the region's finances. And with Bonhams and Christie's already in town, Sotheby's had little choice but to follow.

The UAE has committed quickly to the art scene. Abu Dhabi is working on building a Louvre, and is erecting a Guggenheim. Last year, art auction revenues reached $34.9 million, up 70 percent from 2007. But, the upcoming auction should be tricky, particularly with the poor performance of the sector last fall in more established markets, like New York, London and Hong Kong.

In around two weeks, we'll see if Sotheby's will be able to make this new auction house work, or if it will fall victim to the greater recession-triggered decline in the art market. The Mei Moses All Art Index dropped 4.5 percent last year. This seems like a modest amount, but you need to remember that record-setting sales continued through the middle of the summer. Last May, Roman Abramovich was a billionaire with a new Francis Bacon piece in his collection. Today ... we know he feels pain, too. The second half of the year wiped out the first half's records and pulled prices down further.

It's a tough time to count on the market to make Sotheby's Doha a success, but the market doesn't give us choices.

[Photo: "El Grito" by Julio Aguilera]

--A rug made entirely of jewels is the star of Sotheby's first-ever auctions in Doha, Qatar. Bidding will start at $5 million.

--Some stores are still pulling in customers and they range from Urban Outfitters and American Apparel to Hermes. The ten stores we can't stop shopping in.

--Brooke Astor's co-op isn't the only deal to be found in the world of Manhattan luxury real estate. Some prices are down 20%.

The other day we wrote about the Emir of Qatar's fight with the mayor of Paris over his plans to expand a historic mansion. Now another megarich Middle Eastern potentate is having similar problems - but in this case it looks as if he'll get his way. Sheikh Mohammed Bin Rashid al-Maktoum, the crown prince and ruler of Dubai, bought the Inverinate Estate, a 14-bedroom mansion on 63,000 acres in the Scottish Highlands near the Kyle of Lochalsh, 25 years ago for about $3 million. However, the Sheikh (above, at the Royal Ascot races), who was ranked at No. 5 on Forbes' list of the world's richest royals in 2008 with a fortune of $18 billion, recently decided the place is too small, the the Scotsman reports.

The Sheikh planned to build a new modern two-story lodge featuring a penthouse suite, dining room, kitchen and 16 bedrooms, all with en-suite baths and some with living-room areas. Made from a mix of natural stone, timber paneling and glass, it consists of three main blocks linked by glassed-in walkways. Though the present mansion was built in 1929 to replace an earlier 1880 building, critics initially opposed the Sheikh's plan for the incongruous addition, noting the building is a fine example of Scottish vernacular architecture of its period. After having been brought to a vote by the planning council however, the Sheikh will now be allowed to construct what one critic described as "something you would find in the Arabian desert."

The mayor of Paris is blocking the Emir of Qatar's plans for a multimillion-dollar renovation of the Hotel Lambert (above), an historic 17th century mansion in the Quai d'Anjou on the city's Île Saint-Louis. Mayor Bertrand Delanoë says the Emir's upgrades pose a serious threat to the Paris' architectural heritage, the Property Wire reports. The Emir's plans for the three-story building, built in 1639 by Louis Le Vau and part of a Unesco World Heritage site, include underground parking, new elevators and a the addition of new bed and bathrooms to the living quarters. "This is a real threat to a gem of Paris' heritage, the only private house from the end of Louis the XIII's reign that remains untouched," Delanoë stated in a letter to France's Culture Minister Christine Albanel. "I want this plan to be reconsidered, taking the time for a thorough examination."

As mayor, Delanoë has the power to block real estate projects that do not conform to the city's urban code. The Emir of Qatar, Sheikh Hamad bin Khalifa Al-Thani, was ranked at No. 7 on Forbes' list of the world's richest royals in 2008 with a fortune of $2 billion. He bought the mansion at the tip of the Paris island in 2007 from the Rothschild family for about $100 million, and plans to spend about another $20 million on renovations. He owns several other properties in Paris. Critics of the Emir's plans point out the lavishly appointed mansion already has 12 bathrooms and three elevators, aside from its many historic features. As a former resident of the Île Saint-Louis, I agree with the mayor that it would be a shame to disfigure such an important edifice in such a beautiful locale merely for the sake of convenience and vanity.

Another luxury brand has made the move to Qatar, the new Bottega Veneta store is located in the Villaggio Mall in Doha, It sells men's and women's ready-to-wear, small leather goods, handbags, luggage, eyewear, shoes, and furniture. The interior is decorated with walnut tables, large glass vitrines, leather-covered door handles, ultra-suede walls, mohair furniture upholstery, and New Zealand wool carpets. The Villaggio Mall has a Venetian theme that includes canals with gondala rides and a ceiling that resemble the sky at different times of day and night. It has 220 stores and is the largest retail space in Qatar.

Luxe sushi empire Nobu, backed by Robert De Niro, plans to open an eatery in Doha, Qatar's capital city. Planning is in the early stages and the exact location is unknown, but the odds-on favorite is the landmark Four Seasons Doha in West Bay on the Arabian Gulf, the Qatari Penisula reports. This will be Nobu's second Middle Eastern outpost, following the branch at the newly-opened Atlantis in Dubai's Palm Jumeirah. Qatar, which has the highest per capita income in the world, is also the site of upcoming restaurants from famed chefs Gordon Ramsay and Jean-Georges Vongerichten, part of the country's growing luxeification. Nobu currently has has 21 restaurants in 16 cities around the world.

We've seen the splendor of China's Bird's Nest, now check out a new contender for the prize of most unique stadium. The Wall' stadium in Doha, Qatar's capital city, will be the first underground stadium and the world's first open-air, air-conditioned stadium. The stadium design by MZ & Partners Architects has already earned the nickname "The Laptop." The main stand is upright with most of its height coming from the underground field. All lights will be embedded in the surrounding architecture of the stadium. It is hoped that the underground stadium will help keep the players and spectators cooler. It is expected to be completed in 2010 and will seat 11,000 people.

Famed French fashion house Lanvin of Paris is in talks to sell a major stake in the business to Qatar's royal family. Lanvin owner Shaw-Lan Wang, a Taiwanese media magnate, is said to be keen to exploit the brand's burgeoning success under current creative director Alber Elbaz, formerly of Yves Saint Laurent, Vogue UK reports.

While nothing is set in stone, the deal is said to be worth many millions. Qatar's ruler, Sheikh Hamad bin Khalifa Al Thani, is ranked at No. 7 on Forbes' list of the world's richest royals with a fortune of $2 billion. Since Sheikh Hamad ramped up the development of Qatar's vast oil and natural gas reserves, the country now has the highest per-capita income in the world.

A rich Middle Eastern magnate believed to be a Sheikh flew his brand new Lamborghini Murciélago LP640 on a 6,500 mile roundtrip from Qatar to London just for an oil change the other day. The London Sun reports that the 640 h.p., $380,000 supercar - the same model as the one driven by Batman in The Dark Knight - painted black and gold arrived at Heathrow in the cargo hold of a Qatar Airways jet and was taken to a Lamborghini specialist in London for servicing, adding $7,000 to the estimated $40,000 cost of the flight.

News of the resource-wasting trip drew the ire of environmental groups, including Friends of the Earth's Richard Dyer who told the paper that "Flying a car thousands of miles for a service is ludicrous when planes are one of the most polluting ways to transport goods." However, David Price of the Lamborghini Club UK insisted, "If an owner wants to service his car in that way, it is his choice. Thankfully the age of excess in some areas continues."

The biggest domestic real estate development in the country of Qatar is the Lusail project.  They have recently launched the second phase of the massive project which is essentially a new watefront city. Qatar is the the richest Arab nation and the new development is expected to compete on a global scale. The development will combine commercial, residential and civic facilities with palm-lined pedestrian areas and piazzas. There will be four-to-seven story building with office space and schools, playgrounds, shops, cafes,  bike tracks, health services, libraries, fire and police stations and mosques. The development will also feature a blue water lagoon with two marinas,two golf courses, an entertainment district and beautiful beaches, mosques, schools, shopping malls and medical centers.

[via Strategiy]