The Burj Khalifa was revealed to be 828m (2,716ft) high, far taller than the previous record holder, Taipei 101.
Known as the Burj Dubai during construction, the tower has been renamed after the leader of Dubai's oil-rich neighbour, Abu Dhabi.
Last month, Abu Dhabi gave Dubai a handout of $10bn (£6.13bn) to help it pay off its debts.
Construction of the Burj Dubai began in 2004, at the height of an economic boom.
Clad in 28,000 glass panels, the tower has 160 floors and more than 500,000 sq m of space for offices and flats.
This great project deserves to carry the name of a great man
Sheikh Mohammed
The tower also lays claim to the highest occupied floor, the tallest service lift, and the world's highest observation deck - on the 124th floor.
The world's highest mosque and swimming pool will meanwhile be located on the 158th and 76th floors.
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The opening ceremony, held 1,325 days after excavation work started, was attended by some 6,000 guests. Though not complete on the inside, it was officially opened by Dubai's ruler, Sheikh Mohammed Bin Rashid Al Maktoum.
In a surprise move he renamed it Burj Khalifa - after the president of the United Arab Emirates and emir of Abu Dhabi, Sheikh Khalifa bin Zayed Al Nahayan.
Sheikh Mohammed described the tower as "the tallest building ever created by the hand of man".
"This great project deserves to carry the name of a great man. Today I inaugurate Burj Khalifa," he said.
Sheikh Mohammed also unveiled a plaque inside the tower bearing the new name.
A dramatic fireworks and lights show took place around the tower while a screen displayed its exact height, which had previously been kept secret.
At 828m, Burj Khalifa dwarfs the 508m Taipei 101 and the 629m KVLY-TV mast in the US, the tallest man-made structure. Its spire can been seen 95km (60 miles) away.
"We weren't sure how high we could go," said Bill Baker of Skidmore, Owings & Merrill, the building's structural engineer. "It was kind of an exploration... a learning experience."
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