DUBAI -- A police dragnet continues to widen among senior corporate executives here, in what appears to be a concerted push by government officials to put the shine back on this Mideast boomtown's damaged reputation.

Dubai officials have detained and are questioning one current and one former executive at Nakheel, the real-estate-development subsidiary of government-owned Dubai World. One of Nakheel's showcase projects is the Palm, an archipelago of man-made islands in the shape of a palm tree.

The two men are being investigated for "mistrust and bribery," according to Dubai public prosecution records reviewed by Zawya Dow Jones. In a statement, Nakheel said the probe is related to "acceptance of inducements from third parties."

Nakheel said it conducts regular audits "as part of its commitment to open and transparent corporate governance." It added: "This process is ongoing, and it would be inappropriate to comment further at this stage."

The tightknit business community here has been rocked by a series of probes into alleged financial misdeeds at some of Dubai's biggest and best-known financial and real-estate firms. As word of fresh arrests and police interrogations leaked out over recent months, government officials and executives at companies involved have disclosed little about the probes. That has raised fresh questions about transparency and due process in the emirate.

Earlier this year, Zack Shahin, the chief executive of listed real-estate developer Deyaar Development PJSC, was detained in a probe over alleged financial misdeeds. His arrest wasn't disclosed to holders until after it was reported in the media. He has denied wrongdoing and been replaced as head of the company.

Government officials and executives at Dubai Islamic Bank -- partly government-owned and one of Dubai's biggest banks -- have been tight-lipped about a separate probe there. Deyaar is partly owned by DIB.

Recently, leaks about fresh arrests, along with a rare public statement from the government condemning corruption, suggest that Dubai officials are now trying to control some of the reputational damage. Analysts and Western executives say Dubai's hereditary ruler, Sheikh Mohammed bin Rashid al Maktoum, appears to be sending a message to executives to clean up or face the consequences.

Earlier this month, police arrested Adel Al Shirawi, the former chief executive of Islamic mortgage lender Tamweel. He and another former Tamweel executive are being investigated for alleged embezzlement, according to Dubai public prosecution records. Mr. Shirawi hasn't been reachable for comment.

Both men are currently senior executives at Istithmar World, another affiliate of government-owned Dubai World. Istithmar, which bought retailer Barneys New York last year, confirmed the probe, but has said the company itself isn't being investigated.

"It's a message to those inside as well as the outside. Insiders have to play by the rules," said Eckart Woertz, an economics analyst at the Dubai-based Gulf Research Center. "And to outsiders, that here, we do play by the rules."

One of seven emirates that make up the United Arab Emirates, Dubai has pushed aggressively into ports, tourism and financial services in recent years. Amid a regionwide oil-fired economic boom, the city is attracting scores of Western bankers, attorneys and others eager to take advantage of the Mideast's spending and investment binge.

Government officials weren't available for comment. But earlier this week, Sheikh Mohammed's office issued a rare public statement, condemning acts of corruption and promising to weed them out. The statement said that results of the investigations would be made public when they are finished. So far, the government hasn't disclosed any actual charges in any of the probes.

In the past, while senior executives or officials might be removed for financial wrongdoing, rarely were such departures publicized.

--Margaret Coker in Abu Dhabi contributed to this article.

Write to Stefania Bianchi at stefania.bianchi@dowjones.com, Majdoline Hatoum at majdoline.hatoum@dowjones.com and Mirna Sleiman at mirna.sleiman@dowjones.com

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