Aug. 10, 2010 (China Knowledge) - Dubai World has decided to withdraw investment from "Palm Island" property project in Qingdao, Shandong Province, said Wang Jianping, deputy director of the Qingdao Municipal Development and Reform Commission.

In earlier this year, rumors said that Dubai World may probably cancel its first China-located property plan, Wang confirmed the news on Aug. 4.

In October 2008, Dubai World, an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government, won the bid for the construction rights on the Qingdao-based Wheat Island for RMB 4.37 billion, and RMB 320 million worth of deposit has been paid.

The Middle East company will build on the site for the next "Palm Island".

An officer of the local government of Wheat Island said the government is preparing for an auction to sell the island's construction rights and that the bid price will exceed forecasted RMB 4.37 billion.