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It remains unclear whether the boy was given the property as a gift or how he could have bought into the development, after officials in Baku, the country’s capital, refused to comment on the claims. He did not respond to repeated further requests for comment.
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The island off the coast of Dubai has become a symbol of the emirate's reputation for luxury and extravagance.
Markets across the world were rattled in November after Dubai World, the government investment company behind its most ambitious projects including Palm Jumeirah, said it was seeking to delay repayment on a tranche of its debt.
"We wish not to comment on that,” he said in an email to the paper.
Azerbaijan, which became an independent nation with the collapse of the Soviet Union in 1991, has vast sources of oil.