Govt aid for Dubai developer

The developer behind the Palm Islands in Dubai must repay a sukuk. Photo / Thinkstock

The Dubai property developer behind the emirate's man-made islands will tap Government support funds to repay more than $800 million in debt due next month as it pushes ahead with restructuring talks.

Nakheel announced plans to use funds from the Dubai Financial Support Fund to repay the sukuk, a type of Islamic bond, in a regulatory filing to the Nasdaq Dubai stock exchange.

It did not provide details other than to say the Government "made available sufficient funds to allow for the repayment in full".

Nakheel says it will pay $871.6 million to settle the debt.