FASHION ISLAND: An artist's impression of Dubai Infinity Holdings' Isla Moda.

Investment group Dubai Infinity Holdings (DIH) plans to create the world's first fashion island on the manmade The World archipelago being built of the coast of Dubai, the company said on Tuesday.

DIH said the multi-million dollar Isla Moda island would combine a fashion resort, themed residential villas, haute couture boutiques and luxury hospitality facilities. A spokesman for the company refused to reveal the island's exact value.

High-profile fashion designers from each continent will be involved in designing the development, it said.

Samira Abdulrazzak, CEO of DIH, said Isla Moda would cement Dubai’s position as one of top fashion and lifestyle destinations in the world.

"Isla Moda will be acknowledged as the central fashion district of the entire Middle East and a natural home for all the world’s top fashion luminaries," Abdulrazzak said in a statement.

DIH intends Isla Moda to host exclusive international events, featuring high profile-designers and attended by the fashion world’s top players. Fashion shows and limited edition product launches will also be hosted on the island.

The first stage of the development will begin by the fourth quarter of 2008, DIH said.

The World is one of five manmade islands Dubai-owned developer Nakheel is building of the emirate's coast, which also includes the Palm islands and Dubai Waterfront.

The developer has so far sold around 40% of the 300 islands that make up the world.

Nakheel announced in May last year that it was developing its first island on The World, Coral Island, a super-luxury resort on the north coast of Canada.