Cunard Line has sold the QE2 to Istithmar – the investment arm of Dubai World in the UAE – for £50m (US$100m, 74.3m euro).

The iconic cruise liner will be revamped into a floating hotel, retail and entertainment complex, berthed at a specially constructed pier at Dubai World on the man-made island of The Palm Jumeirah.

Carol Marlow, president of Cunard, said: “When her legendary career as an ocean liner ends there will continue to be a permanent home for her that will enable future generations to continue to experience fully both the ship and her history.”

The refurbishment programme of the newly named QE2 at The Palm Jumeirah will recreate the original interior décor and fittings and establish a museum to celebrate the ship’s history.

Sultan Ahmed bin Sulayem, chair of Dubai World, said: “I am delighted we will be able to create a home for her as one of the must-see experiences of the Middle East, where we are investing in creating a truly global tourism destination.”

The QE2 made 25 world cruises, crossing the Atlantic more than 800 times, since its launch in 1967.