In the latest development in a series of investigations carried out to reveal bribery and corruption in several real estate and financial firms in Dubai, one of Nakheel's employees has been taken in for questioning. The report was issued by Nakheel Properties, the builders of Dubai Palm Islands. 

This news comes just a day following another probe was carried out on a few former employees of Tamweel and a month after investigations into Dubai Islamic Bank and its affiliate Deyaar concerning financial irregularity allegations.

While Nakheel did not name its employee under investigation, they did release a statement saying “As a result of this internal audit process, the company can confirm that a member of staff is being interviewed by the authorities. The allegation of financial irregularities is in relation to the acceptance of sums paid to an employee by third parties."

MEED, the London-based magazine commented on Friday that a senior Nakheel executive has been charged with a criminal case. The alleged financial irregularities involved in the case could be a total exceeding Dh 3 billion ($816.8 million), although the firm denies the figure. Nakheel's statement regarding this matter clearly says “The company can confirm that no embezzlement has taken place within Nakheel and the figure of Dh3 billion quoted by MEED is categorically incorrect.” The Dubai Public Prosecution was closed on Friday and the contacted court official was not available for comment on the matter. Chris O'Donnell, the Nakheel CEO, refused to comment on the case when Reuters contacted him.

Meanwhile, according to Standard Chartered's warning about last month's performance of the Dubai property market, there were apparent signs of overheating because speculators were inflating prices on  incomplete properties. It also stated Dubai should remove short term buyers by defining capital gains tax or take the risk of correctional methods.