Dubai property developer Nakheel said on Monday it is revising the redemption terms for its $750m sukuk which matures in 2011, as concerns over how it will repay its debt weigh on the market.

The state-owned developer of palm-shaped islands off the coast of Dubai also has $3.5bn worth of Islamic bonds which mature in December, and questions remain over the government's plan for them.

'The document relates to a slight differential in the redemption price formula offered to the initial sukuk holders and the formula finally used in the offering circular,' Nakheel said in a statement, referring to a notice issued to investors earlier by Deutsche Bank, the principal paying agent.