The Dubai administration has stated that it would invest around $5.1 billion in MGM Mirage, giving the Las Vegas casino company an associate as it stretched into realty.

Gambling is prohibited in the UAE and Gulf states, comprising Saudi Arabia and Kuwait, because it contradicts Islamic Shariah law.

Kirk Kerkorian, who possesses 54 percent of MGM Mirage, wishes to build up more hotel, housing and entertainment complexes to lessen the dependency of the company on gambling. Dubai has also declared plans this fiscal for at least $13.5 billion in acquirements.

In afternoon trading, MGM shares zoomed $6.81 to $81.13, which doubled in 12 months.

Chris Wiles, portfolio manager at Allegiant Asset Management in Pittsburgh, which owns up around 300,000 MGM shares said, “MGM is talking to partners who can help them transition from a heavy, capital-intensive business to a management business. In Dubai, they’ve got some willing and able buyers.”

Dubai World, which is a government-controlled company, will pay about $84 each for as many as 28.4 million shares of MGM, 13 percent over the yesterday’s (Tuesday) closing price. It will invest $2.7 billion for MGM’s stake in CityCenter, a hotel-and-casino project on the Las Vegas Strip, the companies said.

“Dubai World's proficiency in real estate, combined with our company's operational expertise, strong brands and world-renowned resorts, creates competitive advantages that we believe will benefit all of our stakeholders,” said Terry Lanni, the MGM chief executive.

Dubai will acquire half the 9.5 stake in MGM from the company and one-half from other capitalists through a public tender.