The government gave no reason for the dismissal and representatives for the government weren't available to comment. Mr. Al Shaikh didn't answer calls seeking comment.

A statement Monday from the official Emirates News Agency said that by royal decree, Mr. Al Shaikh was succeeded by Abdul Rahman Saleh Al Saleh. Mr. Al Shaikh will assume a minor role, as assistant director in the office of foreign affairs in Dubai.

Mr. Al Saleh was previously a senior executive for corporate affairs at Dubai's customs authority.

The statement gave no other details.

Dubai, one of seven emirates that make up the United Arab Emirates, financed its rapid growth in recent years in large part with overseas borrowing. Last year's global credit crunch is taking a toll on the heavily leveraged emirate, where the property market has crashed. Amid the global downturn, the government braced for reduced revenue from economic mainstays such as tourism and transportation.

Facing big debt obligations, Dubai announced a $20 billion bond program this year. The first $10 billion of the program, the emirate said, would be subscribed by the U.A.E.'s government, essentially a federal bailout. Dubai said it would use proceeds from the bonds to pay off overseas and domestic debts of its various corporate entities.

Mr. Al Shaikh played a significant role in overseeing Dubai's debt-management plan and implementing the bond program.

Just days before his removal, Mr. Al Shaikh spoke at length at the World Economic Forum on the Middle East, in Jordan, about Dubai's plans to raise the second $10 billion from its $20 billion bond program.

Mr. Al Shaikh also serves as chairman of Dubai real-estate company Deyaar Development PJSC and Islamic mortgage lender Amlak Finance.