Dubai wants to create the "mother of all hubs" and EK is the way they are doing it. I have no doubt that the royal family is lending a hand whenever possible as there is a great rivalry between Dubai (Emirates) and Abu Dhabi (Etihad). Dubai is also building a newer and much bigger airport. This is from Wikipedia; notice the "new" name of the airport...

Dubai World Central International Airport (IATA: JXB, ICAO: Unknown) is a new airport under construction in Dubai, in the United Arab Emirates. This airport was formerly known as "Jebel Ali International Airport". The airport will cover 140 square km (54 square miles) and include facilities for cargo, finance, and other industries. It will also include a golf course. Upon completion, it will be the world's largest by physical size. Dubai intends for Dubai World Central to pass Heathrow, O'Hare, and Atlanta in passenger metrics, but it will initially service cargo airlines. The airport will complement Dubai International Airport, some 40 km (24 miles) away.

As to whether they will succeed in creating a "first class" airline, that all depends if (and when) they start working on providing consistent service and reducing unscheduled aircraft changes...