Barely a year after Las Vegas casino operator Wynn Resorts Ltd. announced plans for a $4 billion resort in the United Arab Emirates, the area is crawling with construction workers erecting five-star resorts, shops and $7 million villas in what developers expect will become a major tourist hotspot.

Before that deal, the artificial Marjan islands off the emirate of Ras Al Khaimah, or RAK, had spent most of the past decade as a lost opportunity, a 2.7 square-kilometer (1 square mile) white elephant largely unused after a $1 billion football-themed resort and related Real Madrid academy was scrapped for the site.

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