Dubai developer Nakheel is close to reaching a final agreement with its creditors, it has announced

The developer of the palm-shaped islands, which owes millions to UK construction firms following the collapse of the Dubai property market, has received approval from a sufficient number of creditors in order to go ahead with the settlement it proposed in July.

The deal offers to pay trade creditors 40% of the money they are owed in cash and the rest in a tradable Islamic bond called a sukuk. Analysts have questioned the value of the sukuk and also whether the 40-60 deal is for the original amounts owed or for amounts that have been revised downwards.

Firms owed money in Dubai include Atkins, EC Harris, Hyder, Mouchel and WSP.