Since she came into service in 1969, the ship has undertaken 25 world cruises, has crossed the Atlantic more than 800 times and has carried more than 2.5 million passengers.
Istithmar said its refurbishment programme would aim to recreate the ship's original interior and would also include a museum celebrating its rich history.
The ship will berthed at a specially constructed pier on Palm Jumeirah, a palm-shaped artificial island off the Dubai coast.
The Palm Jumeirah is part of Dubai's plan to become a global tourism and business centre.
Other projects under construction include the world's tallest tower and the Dubailand theme park.