From the people who brought you the homemade islands that look like palm trees and the tallest building in the world, Dubai is back with another investment. Dubai World will invest $5 billion in Kirk Kerkorian’s MGM Mirage. This will make Dubai World a partner with MGM Mirage as it expands into the real estate business.

Dubai definitely has the resources to help Project CityCenter push past any money woes it may have. Dubai World will pay $2.7 billion for half of the 76-acre Project CityCenter and $2.4 billion in MGM Mirage stock.

“Shares jumped $6.62, or 8.9 percent, to $80.94 Wednesday. They rose another 0.7 percent, or 56 cents, to $81.50 in after-hours trading.” (Yahoo)

“MGM Mirage will remain CityCenter’s developer and will be paid a healthy management fee of 2 percent of gross revenues from the hotel-casino and its Vdara condo-hotel. It will also claim 5 percent of operating profits and a flat $3 million annual fee for managing the shopping center, before its 50 percent share of the net profit is determined”, Lanni said.

MGM Mirage will also get a $100 million bonus from Dubai World if the CityCenter project is finished on budget and on-time, late 2009.