DUBAI: Developers have said they will build a $1.4 billion expanse of lavish suites and residences next to the famed Atlantis resort on Dubai's man-made palm-shaped island as part of the emirate's drive to build up tourism revenue.

Investment Corporation of Dubai and Kerzner International Holdings, which will manage the 800-room hotel, said The Royal Atlantis Resort and Residences will feature modern architecture that allows for sky-high gardens and private infinity pools overlooking the island and water. There will also be 250 luxury residences in the resort.

ICD — an investment arm of the Dubai government — acquired a significant stake in Kerzner earlier this year, with some state media reporting its share is 46 percent. Another state-owned Dubai firm, Istithmar World, bought out Kerzner's stake in the Atlantis Palm in Dubai in 2012.

Executive Director and CEO of ICD, Mohammed Ibrahim Al-Shaibani, said the new resort is an investment in the future of Dubai.

"This investment reaffirms ICD's commitment to support the long-term growth of our domestic hospitality market, a key pillar and growth sector for the Dubai economy," he said in a statement.

ICD's holdings include the Middle East's biggest airline Emirates and a stake in Emaar Properties, the builder of the world's tallest tower, the Burj Khalifa.

Dubai, part of the United Arab Emirates, has positioned itself as a destination for over-the-top luxury and opulence. Tourism is a major source of revenue for the emirate, which is preparing to host the World Expo in 2020.