United Arab Emirates: The Financial Crisis and Abu Dhabi-Dubai Relations

Due its exposure to the international credit system, the emirate of Dubai is the Middle Eastern economy hit hardest by the global financial crisis. The effects are such that Dubai will need help from the more powerful, oil-rich emirate of Abu Dhabi. While it will struggle to limit the extent to which it has to accept financial assistance from Abu Dhabi, it is unlikely that Dubai can altogether avoid the dependency. As a result, there will be a further tilt in the balance of power toward Abu Dhabi, which will assume a more dominant position in the seven-emirate federation of the United Arab Emirates.