Dubai developer Nakheel and leading Thai hotel group Centara Hotels have signed a joint venture agreement to create a AED500m (US$136m, €129m, £112m) beachfront resort at Deira Islands in Dubai.

The two companies will develop an upscale resort on a prime stretch of beach on Deira Islands – a new, 15.3sq km (5.9sq mile), world-class tourism, leisure, retail and entertainment hub that will include a spa and fitness centre.

Nakheel’s joint venture with Centara is the latest development in the company’s aggressive expansion into Dubai’s hospitality sector, and its second international joint venture for Deira Islands.

Nakheel chairman Ali Rashid Lootah said: “Our joint venture with Centara cements our commitment to partnering with successful, reputable international hotel brands to bring new tourism concepts to Dubai, in line with the government of Dubai’s tourism vision.”

As the first Centara establishment in the UAE, the resort is anticipated to have a soft opening in 2019 and grand opening in 2020.