Dubai to buy QE2 for floating hotel

State-owned private equity firm Istithmar will become the new owner of the QE2, the longest-serving ship in the 168-year history of the Cunard line, which belongs to Carnival Corp, the world's largest cruise operator.

The liner will be anchored off the 560 hectare Palm Jumeirah, the smallest of three islands shaped as palm fronds that government-owned developer Nakheel is building off Dubai's coast.