Dubai plans to develop a 6.3 billion dirham (1.3 billion pounds) tourist resort on two man-made islands it will build either side of the Burj Al Arab, its luxury sail-shaped hotel.
It is the latest development planned by the emirate as it aims to attract 20 million visitors a year by 2020 when Dubai will host the World Expo 2020 exhibition.
Spanning 4 million square feet, Marsa Al Arab will be made up of two islands, one dedicated to entertainment and family tourism and the other featuring luxury villas and a private marina, state news agency WAM reported on Monday.
Dubai is already one of the world's most visited cities, although its hotels, shopping malls and state-owned airline, Emirates, have been buffeted by a strong U.S. dollar which has made the emirate pricier for many overseas visitors. The United Arab Emirates pegs its dirham to the dollar.