Dubai World, the emirate’s state-controlled investment vehicle, is to invest $5bn (£2.5bn) into a partnership to develop casinos with MGM Mirage.

The investment will go into a 76 acre resort on the Las Vegas Strip. Dubai World will also buy up to $2.4bn of MGM Mirage shares.

The first phase of development, CityCenter, will comprise a 4,000-room casino, two non-gambling hotels, 2,650 flats and 470,000 sq ft of retail. It is due to be completed in 2009.