Dubai-based Damac Properties has denied a Turkish newspaper report that the emirate's ruler Sheikh Mohammed bin Rashid al-Maktoum has bought a 40 per cent stake in the private developer.

Turkish daily Vatan earlier on Friday quoted an official at Debba, a subsidiary of Damac Properties in Turkey, as saying Dubai's ruler had bought 40 percent of the group and that Damac Properties plans to invest $6 billion in a Turkish coastal development of hotels, houses, shopping malls and marinas.

'Damac has not sold any shares to anyone,' a Damac spokesman told Reuters in Dubai.

Dubai's real estate sector has been hit hard recently as property prices fall, construction projects are scaled back and jobs are cut.

In November Damac slashed 200 jobs and said it would not be expanding into new markets due to the global financial crisis.

The developer also said it was looking to reschedule the construction of select projects.-Reuters