DUBAI: Dubai’s ruler moved on Monday to assure investors it will have the support of its wealthier neighbour Abu Dhabi as it meets its financial obligations and said the emirate’s future ambitions remain undeterred.

Sheikh Mohammed bin Rashid al-Maktoum, who is also prime minister of the United Arab Emirates, the world’s third largest oil exporter, said Dubai had passed the worst of the economic downturn and he had confidence in its ability to act in the global market.

Dubai’s ruler said ties between Abu Dhabi, the main contributor to the federal budget and holder of most of the emirate’s crude oil, and Dubai should not be questioned.

‘There is no Dubai and Abu Dhabi, we are one,’ Sheikh Mohammed said at an investor meeting. ‘Whoever doesn’t understand this should do their homework before they start talking ... We will be there for each other when we need it.’

Widespread speculation that Abu Dhabi would be obliged to support Dubai through the global crisis either through federal stimulus programmes or secret, bilateral deals – led to talk of increasingly strained relations between the two.

‘And I want to tell those people who nag about Dubai and Abu Dhabi to shut up,’ Sheikh Mohammed said breaking into English whilst delivering a speech in Arabic.

The emirate, one of seven in the UAE federation, and its state-linked firms have outstanding debt of about $80 billion, much of it incurred during a drive that saw Dubai expand activities in logistics, financial services, property and luxury retail and tourism.

‘(These) were embedded and direct messages of resolve, unity and confidence at a time when investors are in search of strong statements and proof of support,’ said John Sfakianakis, chief economist at Banque Saudi Fransi-Credit Agricole.

Dubai’s economy has been hit hard as the global credit crunch saw an end to a six-year boom in the region and sent the emirate’s once-flourishing property sector into decline.

‘The global economic crisis despite its ... impacts on the local economy will not deter Dubai’s ambitions of implementing its development plans,’ Sheikh Mohammed said.

‘I am confident that the worst has passed, and that as the global economy stabilises, Dubai today is well placed.’

Dubai’s main bourse rallied after the comments closing almost 1.5 per cent higher.’Positive comments from Sheikh Mohammed ... is another positive sign of Dubai’s commitment to attracting international investors and leading by example from the highest level when it comes to visibility,’ said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

Earlier this year, Dubai raised $10 billion in emergency cash from the UAE’s central bank through a bond issue as part of a plan to raise a total of $20 billion, setting up a support fund to manage the proceeds.

Sheikh Mohammed said the second tranche ‘will receive subscribers,’ suggesting it would not be purchased entirely by the UAE central bank, as the first had been.—Reuters