Abu Dhabi rises as Dubai sinks in debt

The power shift is a sensitive issue -- Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum said this month the UAE was one big family and detractors who talk of division should “shut up”.

“One of the things the UAE is striving to be is a political power. It is coming of age and wants to be recognised as a regional power,” said political scientist Abdul-Khaleq Abdullah.

The UAE’s nuclear energy plans are one sign of the new role the US ally seeks, challenging a traditional Saudi hegemony in the Gulf.

The UAE in May pulled out of Gulf monetary union plans over Saudi insistence on hosting a regional central bank.

The UAE is in the final stages of gaining a nuclear power cooperation deal with Washington which will see it become the first Gulf Arab country to go down that path, leading to even closer political and economic ties with ally Washington.

“It is inevitable that having a supervised active nuclear reactor will add to the UAE’s already significant clout in the region,” said UAE commentator Sultan Al-Qassemi, a member of one of the UAE ruling families.

Iran pressure?

Analysts say Abu Dhabi and Washington have pressured Dubai to take a tougher line on Iran, as well as overcome a reputation as the Wild West of the Middle East that had threatened Washington’s approval of its nuclear activities.

US Congressmen raised concerns about the UAE’s relationship with Iran -- mainly via Dubai -- and the UAE had to give assurances it would not use American technology to develop a nuclear weapon or help others in the region do that.

The UAE backs the US policy seeking to prevent Iran having the ability to develop nuclear weapons. Iran denies any such intention.

The UAE claims three Gulf islands which Iran holds.

With a large Iranian expatriate population, Dubai is a major exporter to Iran and a re-export centre for Iranian goods.

After the Sept. 11 attacks on US cities, the UAE cracked down on money laundering and strengthened export controls.

“There is incredible (American) pressure,” said British historian Christopher Davidson. “Dubai’s role and autonomy in the federation is really something that Abu Dhabi and Washington can’t allow to continue. It’s a security liability.”