The state-owned flagship firm also named Andy Watson as managing director and Junaid Rahimullah as chief financial officer.

The two property divisions have operationally and financially been separated from Dubai World, according to a statement.

Nakheel, builder of man-made palm-shaped islands, and Limitless were at the center of Dubai's debt crisis in 2009 after its property market crashed.

In a separate statement, Nakheel said it secured approval from 100 percent of banks and a required majority of trade creditors for its restructuring.

The indebted developer, which is struggling to repay a $10.9 billion debt, said its restructuring would now be completed with the issuance of Islamic bonds to its trade creditors.

Nakheel's offering of the potential $1.6 billion Islamic bond was delayed from June to July, two sources familiar with the matter said last month.

Shifting Nakheel to the Dubai government was part of Dubai World's debt restructuring proposal.

Dubai World signed a final agreement with creditors to restructure $24.9 billion in debt in March.

Limitless, which once attempted to build a 75-kilometer inland waterway called the Arabian Canal, was excluded from Dubai World's restructuring plan, unveiled in March last year.

The developer, which was a vehicle for most of Dubai World's overseas property investments, has rolled over a $1.2 billion loan owed to one syndicate of banks several times.