Dubai-based developer Emaar could make a surprise announcement this week of a possible plan to build a new skyscraper.
A senior source at Emaar told Construction Week that the company could announce plans for its own new mega-tall skyscraper along with Nakheel's announcement at a property exhibition in Dubai this week.
One-year-old Dubai-based developer Meraas is also looking to build a skyscraper that would not only dwarf Emaar's Burj Dubai, but also Nakheel's upcoming "Tall Tower" project.
When told of Nakheel's planned announcement, the Emaar source said, "Well, we've got another one," adding, "I wouldn't be surprised if we do something in concert with that (the Nakheel announcement)."
But an Emaar spokesperson has denied any links to a new tower saying, "Burj Dubai is the world's tallest tower and continues to rise. Emaar currently has no plans to announce a taller tower."
Another industry source also denied Emaar's plans to build a rival tower but stated different reasons.
"Where is it going to build this tower? Emaar has no more land left. Whatever land it had, it has already planned for and has even begun construction on."
It is believed that the Nakheel announcement will centre on the Al Burj, or "Tall Tower," which will be located in the Jebel Ali area between Jumeirah Lake Towers and Ibn Battuta Mall on Sheikh Zayed Road.
Last November CW disclosed the location of the tower with following reports on its construction process.
Initial designs for the Al Burj, or Tall Tower, indicated a 228-storey building that reached 1.4km.
Last month, Nakheel's CEO Chris O'Donnell said that the tower will be "an iconic building," and indicated that an official announcement would be made by December.
Renderings of a giant 2.4km tower called the "Dubai City Tower" have been circulating, with Emaar denying any link to the structure.
Dubai City Tower has been linked by some reports to Meraas, the development firm operating under UAE vice-president and ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum.
Meraas is constructing the Jumeirah Garden City project, which is being developed in the Satwa area of Dubai.
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