The 25,000 square-metre museum will be adjacent to the Union House in Jumeirah, which witnessed the signing of the treaty establishing the United Arab Emirates federation in 1971.
The museum will document and narrate the events from 1968 to 1974 and draw on the political and social circumstances surrounding that phase of UAE history.
State news agency WAM said it aims to educate citizens, residents and visitors about UAE modern history and the nation’s achievements.
The entrance of the new pavilion will be designed in a shape of a manuscript with seven columns that simulate the pen used to sign the declaration.
The museum will include permanent and temporary halls, a theatre, educational area, recreational area and administration offices.
The project will also add a new waterfront and a new 123 metre flag pole will replace the original one built in 2001.
Dubai’s Road and Transport Authority will supervise the project and Dubai Culture and Arts Authority will operate the museum once completed.
The Union Museum is composed of eight permanent pavilions in addition to one temporary pavilion used to exhibit items from international museums.