But as with other Dubai companies, Drydocks World isn't slowing its hotel investments.

WSJ: Dubai's New Boom Is Hotel Rooms

New environment body Natural Resources Wales says Swansea Drydocks Ltd can now expand the area where it dismantles ships to include a "wet berth".

BBC: Prince of Wales dry dock, Swansea

"Dubai is a winner for tourism because the government has created conditions to promote the industry, " says Bogdan Gutkowski, the chief executive of Swiss investment firm BIG InvestConsult AG, which is joining with Drydocks World to build the underwater hotel.

WSJ: Dubai's New Boom Is Hotel Rooms