Dubai to Buy Queen Elizabeth 2 for Floating Hotel

Dubai has agreed to buy the Queen Elizabeth 2 for $100 million and turn the famous cruise ship into a floating hotel off the Gulf emirates' man-made islands, state-owned private equity firm Istithmar said on Monday.

The QE2 is the longest-serving ship in the 168 year history of the Cunard line, which is owned by Carnival Corp, the world's largest cruise operator, Istithmar said in a statement.

Istithmar is the investment arm of Dubai World, the government agency that owns real-estate developer Nakheel, which is building three palm-frond shaped islands off Dubai's coast.