Dubai Ruler Sheikh Mohammed has announced the launch of Marsa Al Arab, Dubai Holding’s latest tourist destination development in the emirate.

The $1.7bn mega-project, spread across 4m sq ft, will be developed on two new islands on both sides of Burj Al Arab Jumeirah. Marsa (Arabic for marina) Al Arab is expected to be completed by 2020.

One island will be dedicated to entertainment and family tourism, while the other comprises an exclusive luxury resort. The two islands will add 2.2km of beach frontage, as well as three new hotels and a number of new tourist attractions.

Overall, Dubai Holding will add 2,400 hotel rooms to Jumeirah Group’s portfolio, bringing its total offering to 8,428 rooms.

However, property investors in the emirate are already suffering from falling rental prices, and property values sliding by over 10% in the year to Q1 2017, according to Asteco.