Dubai World, the investment firm in this fast-growing Persian Gulf emirate, will pay US$2.7 billion to purchase a 50 percent stake in CityCenter, a 76-acre urban metropolis with upscale hotels, condos and retail to open by 2009.
Dubai World will also buy 14 million shares from MGM Mirage at a price of US$84 per share.
The company, owned by the ambitious ruler of Dubai, Emirates' Vice President and Premier Sheik Mohammed Bin Rashid al-Maktoum, also intends to acquire an additional 14 million shares from public shareholders, the company said Wednesday.
"The announcement today brings together two companies known for creating landmark developments that have the ability to change the face of luxury living and tourism," said Sultan Ahmed bin Sulayem, Chairman of Dubai World.
"Our vision is to create a global portfolio of signature properties that will create value for generations to come," Bin Sulayem said.
Dubai World became known in America when its subsidiary, Dubai Ports World, last year was forced to sell its U.S. port operations over security concerns in the United States.
The company is a powerful engine for this city-state's economic growth. It holds a collection of companies in the Emirates, the Gulf and abroad, including in the U.S., UK and South Africa as well as ports in China, Peru and Australia.
Dubai World also recently won control of the Barneys New York department store.