Known as Isla Moda, the project will include a fashion-themed resort, villas and shops.

The hotel will have about 250 rooms and serviced apartments. The first stage of the development will begin by the fourth quarter of 2008.

The project is the latest to be launched on The World. Local developer Aspire is planning to build a $3.4bn resort on 17 islands, and Kuwait’s Investment Dar is planning a $5bn development on the Australasian islands (MEED 12:10:07).