Private equity firm Istithmar, a subsidiary of state-owned holding company Dubai World, will become the ship's new owner. The liner will be anchored along a specially constructed pier at The Palm Jumeriah, the world's largest man-made island being built as a leisure and luxury residential destination by real estate developer Nakheel, also owned by Dubai World.

Dubai hopes that the 70,000-ton vessel, which was first launched in 1967, will become a must-see tourist destination when it is anchored off the island in 2009. In addition to serving as a luxury hotel, retail and entertainment center, Istithmar is also planning a museum on board celebrating the ship's history. Cunard will deliver the QE2 to Dubai World in November 2008.