Job losses on the horizon for palm firm

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The Independent Online

Nakheel, the state-owned Dubai property group that was responsible for the iconic Palm Jumeirah artificial island, is set to make as many as 500 redundancies now that the Emirate's "Cityscape Dubai 2009" show is over.

Announcements are expected in the next few days, a consequence of fallout from the global financial crisis. Dubai property values have fallen 50 per cent in a year. The company said last night: "Nakheel continues to evaluate its projects and commitments against market conditions and opportunities. In doing so, the company also evaluates its cost base and efficiencies."

Ratings agency Standard & Poor's said Dubai needs to raise another $10bn (£6.3bn) for its economic support fund, to prop up government-related companies.