Dubai's Palm Island developer cuts 500 jobs

Dubai's Palm Islands developer Nakhell has axed 500 jobs as the economic slowdown hits the emirate.

The government-owned developer has shed 15% of its workforce as it scales back work on major developments.

In a statement it said: "We have the responsibility to adjust our short-term business plans to accommodate the current global environment.

"The redundancies are regrettable, but a necessity dictated by operational requirements which are in turn dependent on demand."

The Times reported Nakhell has also ordered dredging work to be scaled back on its biggest palm-shaped island Palm Deira.