Smoke and fire rose from Naama Bay, a main strip of beach hotels in the desert city popular with Israeli and European tourists, witnesses said.

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For decades, the industrial strip along the shores of Tokyo Bay has fastened the nuts and bolts of Japan's technological revolution.

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Across the bay, fancy yachts and speed boats crowd the shores of the Ilha, a once almost deserted strip of sand used mainly by poor fishermen, on which smart restaurants and nightclubs for the new elite are now springing up.

ECONOMIST: The oil money may start to trickle down