Nakheel Mall is slated to be completed in 2016, Nakheel said in a statement.
The new development – part of Nakheel’s retail expansion strategy – was endorsed by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum last weekend.
The indebted developer said Nakheel Mall is already drawing interest from global and local retailers.
It added that the project will cover more than 424,000 sq m and will include five retail levels and three basement parking levels.
It will feature almost 100,000 sq m of retail space, 4,000 parking bays, a 1,000 sq m indoor garden and a 180 metre high viewing deck with panoramic views of Palm Jumeirah and the Dubai skyline, Nakheel said.
Nakheel Mall will feature nearly 200 shops, including a 4,200 sq m supermarket and two anchor department stores, a nine-screen cinema and six medical clinics.
There will also be an outdoor roof plaza with extensive food and beverage outlets, with additional restaurants and cafes – including a food court – inside the complex.
The project plan also includes a five star hotel – with direct access to Nakheel Mall – featuring 200 rooms, 200 apartments and a rooftop swimming pool, restaurant and lounge.
Construction will start this year and is expected to take about three years to complete.
Ali Rashid Lootah, chairman of Nakheel, said: “Nakheel Mall will bring a new dimension to shopping, dining and leisure in Dubai.
“It will enhance the services and facilities available to residents of Palm Jumeirah, and provide an exciting new destination for people in across the UAE, including the millions of tourists who visit our country each year.”
Last week, Sheikh Mohammed also ordered the commencement of The Pointe project, overlooking the Jumeirah Beach hotel and the Atlantis resort at a cost of AED800m.
The Pointe will include shops, computer-controlled fountains, a marina and a public walk on the tip of the palm-shaped island.
Nakheel’s plans for 2013 also include the handover of around 3,000 units to customers, investment of AED6.5bn in new projects to be completed over a three year period, expansion of Ibn Battuta Mall and continued enhancement of existing communities with local facilities including shopping centres and parks.