A Dubai-based property developer is set to follow in the footsteps of its sister company, ports operator DP World, by launching a $1bn (€682m) Islamic sukuk bond, as it revealed plans for an initial public offering in two years' time.

The sukuk sale by real estate company Nakheel will be led by JP Morgan and is similar in structure to the sukuk part of DP World's $5bn initial public offering earlier last month, the Middle East's biggest. Nakheel is also planning to float before 2009.