Istithmar World, the investment arm of Dubai World, and Nakheel have joined hands to snap up a 20 per cent stake in Cirque du Soleil, the world’s leading live entertainment company providing high-quality artistic entertainment.

The deal paves way for Istithmar World’s first foray into the live entertainment sector.

Canada-based Cirque du Soleil has annual sales of over $700 million and attracts nearly ten million visitors a year, making it one of the world’s largest entertainment businesses.

Nakheel and Cirque du Soleil had in May last year announced a 15-year partnership to develop a permanent show on Palm Jumeirah.

The two organisations will jointly design and build a 1,800-seat theatre that will be home to the first-ever Cirque resident show to be staged outside of the US and the Far East.

Designs for the theatre are underway, as are plans for the custom-produced show. Palm Jumeirah will also host Cirque du Soleil’s world famous touring show ‘Alegria’ in spring 2009 as a prelude to the permanent show which is due to open on the island in summer 2011.

David Jackson, chief executive officer, Istithmar World Capital, said the deal marks Istithmar World’s debut into the live entertainment space, a key to its media focus.

’As a longstanding market leader in the live entertainment segment, Cirque du Soleil represents the ideal platform for Istithmar World to fuse its strong investment network into a highly focused and dynamic institution, with tremendous scope for growth across markets,’ he said in a statement.

’Besides being a global tourist hub, Dubai is home to one of the fastest growing entertainment and media markets in the world, presenting a huge opportunity for such world-class cultural and entertainment facilities to add to the emirate’s rich tourism and leisure offerings.’

He said the partnership was in line with Istithmar World’s strategy of realising the true growth and expansion potential of portfolio companies.

Guy Laliberté, founder and principal shareholder of Cirque du Soleil, said: ’This partnership is a unique opportunity that puts forward the dream I have forged for Cirque du Soleil to continue at another level.’

’We have found the right partners in our long-term growth in the form of Dubai World and this marks a watershed moment in our evolution. With this partnership, I can retain control of my business with the support and input of a partner that is recognized and highly respected throughout the world,’ he said.

’In the coming weeks we will implement a development structure that will allow us to become a major player in Dubai. In addition to establishing a permanent theatre in Dubai, we will open a show production office, a ticketing company and a technical equipment and set design rental company,’ he added.

’This partnership is the best of both worlds for me and my management team; we can keep control of our creative challenges and operations while accelerating our growth doing projects all over the world,’ he added.

’The opportunity to be involved in an entertainment project of this scale in conjunction with the resources of Istithmar World and Nakheel is extremely exciting for all of us at Cirque du Soleil,’ Laliberté said.

Chris O’Donnell, chief executive officer, Nakheel, said Cirque du Soleil shows had always been major draws in attracting tourists from all over the world to such global leisure destinations as Las Vegas and Macau.

’Its touring show, which was performed in Dubai last year, was one of the most successful single entertainment projects ever to be staged in the region and we are excited about welcoming a new touring show ‘Alegria’ in Spring next year.’

’We are also confident that an original show and a brand new purpose-built venue on Palm Jumeirah will capture the imagination and provide a further draw for tourists around the world to visit<