Carnival has entered a deal with UAE's Meraas to build the Dubai Cruise Terminal as its primary hub for homeporting and transit operations in the region.

"The partnership will also result in both parties working together to identify and grow the cruise business industry in the Arabian Gulf region," the Arnold Donald-based company announced today.

Operations are set to begin in late 2020, Carnival said. Cost for the project was not disclosed.

"We have a long history in Dubai with our world-leading cruise brands," Donald said.

"We are excited to be part of this important venture that will drive new tourism opportunities for Dubai and the region through cruising.”

Carnival said it will launch new cruises from the terminal in an effort to attract new source markets from India and China.

The port will become Dubai's main cruise terminal and all cruise ships visiting Port Rashid will be redirected gradually from its opening date, Carnival said.

“In line with the agreement with Carnival Corporation, the cruise hub at Dubai Harbour will reinforce Dubai's status as an ideal holiday destination, a starting point for cruises to exclusive destinations and a gateway to exploring the world," His Excellency Abdulla Al Habbai said.

Other dignitaries at the signing event included Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and His Highness Sheikh Mansour bin Mohammed bin Rashid Al Maktoum.

Dubai Harbour will be home to two cruise terminal buildings covering 30,000 square metres and joined by a quay of about one kilometre.

The harbour, at 20 million square-feet, will be able to handle up to three cruise ships and up to 13,200 passengers at a time, Carnival said.

Meraas plans to add two more terminal buildings to increase capacity to six cruise ships.

Both companies will collaborate in several areas, including port development, terminal management and new cruise development opportunities in the harbour and the region.

The development will feature a shopping mall, luxury residential units, restaurants, cafes, hotels and a yacht club, as well as a 135-metre-tall Dubai Lighthouse with viewing platform.

The project is part of Dubai Tourism Vision 2020, aimed at drawing 20 million visitors a year to the emirate, and Dubai Plan 2021, intended to establish it as a top world city.

The maritime tourism sector is expected to contribute more than AED 1.5bn ($408.4m) to Dubai’s economy by 2030, according to the Cruise Lines International Association.