Developers say they will build a $1.4 billion expanse of lavish suites and residences next to the famed Atlantis resort on Dubai's man-made palm-shaped island.

Investment Corporation of Dubai and Kerzner International Holdings, which will manage the 800-room hotel, announced the plans for The Royal Atlantis Resort and Residences on Monday.

The Investment Corporation of Dubai is an investment arm of the Dubai government and has a 46 percent stake in Kerzner. Another state-owned Dubai firm, Istithmar World, owns an additional 25 percent in Kerzner.

Kerzner says the resort will also include 250 luxury residences. The architecture will be modern and feature sky-high gardens and private infinity pools overlooking the island.

Tourism is a major source for revenue for Dubai, which is preparing to host the World Expo in 2020.