Further doubts have been cast over the viability of a number of ambitious construction projects in Dubai, after one of the largest state corporations announced it is seeking to delay its debt repayments.

State-owned Dubai World, the parent company of developer Nakheel and investment company Leisurecorp, has pleaded with creditors to agree to a six-month debt standstill while the troubled company undergoes a restructuring.

Nakheel is currently developing a number of high-profile mixed-use projects, including The Palm and The World. Leisurecorp, formerly Istithmar Leisure, owns the Pearl Valley Golf Estates in South Africa, the Turnberry Resort in Scotland and the Jumeirah Golf Estates in Dubai.

Earlier this year, Nakheel put on hold its most ambitious project, the 1,400 m (4,600 ft)-tall Nakheel Tower, citing the recession as a reason for the decision.

It is believed that Dubai World's total debt is somewhere between US$59bn (£36m, €39m) and US$80bn (£48m, €53m).

The announcement sent ripples around the world's stock markets. Banks saw billions shaved off their stock values as traders feared that financial institutions would end up having to write off Dubai World's mountain of debt.

Dubai World was established in 2006 by Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai and Prime Minister of United Arab Emirates.