Spain’s RIU Hotels & Resorts is set to run a new 750-key beachfront resort at Deira Islands in Dubai, which is being developed by Middle Eastern developer Nakheel – the firm responsible for the man-made Palm Islands.

The four-star hotel will be located on one of the four linked Deira Islands – which make up 15.3sq km (1,530 ha). Nakheel – known for its ability to ‘reclaim land from the sea’ – is in charge of master-planning and completing infrastructure work ready for third party development on each island.

Luis Riu, CEO of RIU Hotels & Resorts, said: "Undertaking this project is an extraordinary challenge and a great boost for RIU since we are starting on a new venture in a part of the world where we are not currently represented.”

Nakheel Chairman Ali Rashid Lootah said: “This is a major milestone for our growing hospitality business and a significant step towards creating a new range of affordable, family resort-style hotel accommodation in the emirate, in line with the government of Dubai’s tourism vision for 2021.”

In April 2014 Nakheel appointed AE7 for the design and supervision services for Deira Islands under a contract worth AED28m (US$7.6m, €7m, £4.8m). The same firm was also awarded another contract worth AED19m (US$5.3m, €4.7m, £3.4m) covering architectural and engineering services for the islands’ Night Market and boardwalk, according to Arabian Business.

Other leisure facilities on the islands are to include an amphitheatre for 30,000 people, a marina, design towers and a shopping mall. Nakheel’s Deira Islands coastal city will add 40km, including 21km of beachfront, to Dubai’s coastline.

In June 2014, Nakheel awarded a contract worth nearly AED40m (US$11m, €10m, £7m) to RSP Architects, Planners & Engineers to act as the design and supervision consultant to the Deira Islands Mall – which will comprise 200,000sq ft (18,580sq m) of leasable space.