Construction work on the Nakheel Tower – a building that would soar more than 1km high to be the world's tallest when completed – has been stopped for a year.

'Further work on the foundations of Nakheel Harbour and Tower will commence in 12 months,' said a Nakheel spokesman. 'The foundation works are likely to take approximately three years to complete.'

A senior project manager said several employees working on the Dubai project had been laid off because 'work has stopped until further notice'.

The stalling of the tower is the latest in a string of delays on Nakheel’s most prominent projects as a result of the slowdown in the property market.

The National