The government-owned holding company Dubai World announced it’s planning a 5.1-billion-dollar deal with MGM Mirage, one of the largest gaming companies in the world.

Under this deal, Dubai will buy a 9.5 per cent stake in MGM Mirage and another 50 per cent in the 76-acre development project CityCenter proposed by Mirage on the Las Vegas Strip.

This project would be the largest privately financed development in the United States, containing luxury condominiums, hotels, stores and a casino.

“Dubai World is looking to invest in projects that make good business sense…this investment is in line with our objective to only partner with 'the best' and MGM is one of the world's leading entertainment companies and hotel resort operators,” a statement released by the holding company read.

Dubai intends to invest 2.7 billion dollars in CityCenter, the entire project being expected to cost more than 7 billion dollars. Also, the holding company from the Persian Gulf emirate will buy 28.4 million MGM shares, offering 84 dollars per share.

The Las Vegas-based company is currently owned by billionaire Kirk Kerkorian and his Tracinda Corporation, the yearly revenue swiveling around 7.4 billion dollars. Kerkorian’s Mirage owns approximately one-third of the Las Vegas Strip since 2005.

“This is a transforming event for MGM MIRAGE and Las Vegas. This partnership with Dubai World brings us a relationship with an internationally-respected developer of large-scale luxury properties that attract an international clientele,” the Chairman and CEO of MGM Mirage Terrence Lanni said.

Through one of its subsidiaries, Dubai Ports World, the holding company planned another investment in the US last year. Dubai wanted to take over operations in six major seaports, but the Congress and public expressed their concern that the sale would compromise security and the state-owned company had to brush off its plans.