The uncertain economic outlook for Dubai worsened yesterday as Nakheel, the government-owned property developer, said it was cutting 15 per cent of its workforce and it emerged that Morgan Stanley and Credit Suisse also are shedding regional staff.

Falling property prices and disappearing credit lines have caused developers to trim back real estate plans, while investment banks are preparing for tougher times as the oil price slump helps to rein in breakneck growth across the Gulf.