Dubai ruler Sheikh Mohammad Bin Rashid Al Maktoum announced on Saturday plans to build a new multi-billion dollar project called Mohammad Bin Rashid City.
The new city project will be built by Dubai Holding and Emaar Properties in what is being described as the biggest real estate joint venture in the region.
No value has been given for the project but plans include building the world's biggest shopping mall, a Universal family theme park and a park that is a third bigger than Hyde Park in London.
The project will comprise four key components and will feature "world class leisure facilities and provide an integrated environment for the development of entrepreneurship and innovation", a statement said. It is not clear how this project will impact the much-delayed Dubailand project.
The first component will focus on family tourism, and will include a giant park, equipped to receive 35 million visitors and a family entertainment centre set up in collaboration with Universal Studios and hotel facilities.
The second component, focusing on retail, will feature the largest shopping mall in the world called Mall of the World. Dubai already boasts the largest mall in the world, Emaar's The Dubai Mall.
A third component will include the largest area for arts galleries in Middle East and North Africa while the fourth fourth component will see the development of facilities to provide "an integrated environment for entrepreneurship and innovation in the region".
The new city will be located between Emirates Road, Al Khail Road and Shaikh Zayed Road, and will include Mohammad bin Rashid Gardens Project.
Sheikh Mohammad said in the statement: “The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city.
"Therefore we have to start work immediately on the third phase of development that is aligned to our Vision till 2030 and boost the UAE economy to enable it to enter a new era in which it will become the capital of entrepreneurship, arts, culture, and family tourism for over 2 billion people.”
He added: “Our development initiatives concerning infrastructure in all sectors should be aligned with this growth rate and we have the determination to reach our objectives and be the first in the region to achieve them.”
The new city will also include residential areas built on green building standards in terms of energy consumption, waste treatment and conservation of natural environment.
It will also feature a number of golf courses under well-known international names.