Hollywood studio Dreamworks Animations SKG has announced plans to build a theme park in Dubai.

It will be the company's first move into the facilities market and the first time a new player has emerged in the international theme park market for many years.

The new attraction will be built within the vast Dubailand project and will be located next door to both Paramount Studios and Universal City – a major development which will be anchored by a Universal Studios theme park.

Dubailand is the vision of Dubai's current ruler Sheikh Mohammed bin Rashid Al Maktoum and is being developed under the umbrella of Tatweer, part of Dubai Holdings.

When complete, the development will be a 3bn sq ft city, divided into six themed worlds. The venture is expected to attract approximately 200,000 visitors daily and cost a total of $20bn.

Tatweer is expected to take a 'reasonable amount' of shareholding in DreamWorks Animation SKG to enable the new project to go ahead.

There are currently 22 schemes under development at Dubailand, including Tiger Woods Dubai, which will feature the first golf course to be designed by the world's leading golfer and Restless Planet which has been created in collaboration with London's Natural History Museum. The Dubai Snowdome – already open – offers year round skiing on real snow.

The Dreamworks park, which will open in 2012, will be based on characters from hit film franchises Shrek, Madagascar and Kung Fu Panda. All three films have been planned to support a programme of successful sequels and Dreamworks executives are thought to favour the park as a way of supporting and exploiting the long running nature of the films.

Dreamworks will also build a hotel and leisure development alongside the park, which will open in 2010, to coincide with the launch of the Universal theme park.

Image: The new theme park will form part of the vast Dubailand scheme