Sheikh Khalifa bin Zayed al-Nahayan issued a statement saying the UAE economy was in a good condition.
He also praised Dubai's leader, saying he managed daily "achievements". The Sheikh's comments come after almost a week of market turmoil.
It was sparked when Dubai World, Dubai's highest-profile company, said it would reschedule part of its debts.
Markets across the UAE have fallen sharply. The markets in both Dubai and Abu Dhabi fell by about 6% for the second day in a row. Qatar's main index closed down 8.3%.
But major Western markets appear to be steadying, with all the main European stock markets higher in morning trade on Tuesday.
Debt restructuring
The UAE president said the Gulf region would not slip due to what he called the global financial crisis.
Sheikh Khalifa also praised the ruler of Dubai - who is also his UAE vice president, prime minister and defence minister - saying Sheikh Mohammed bin Rashid al-Maktoum and his cabinet "face every morning challenges, but plan and remove all obstacles to score achievements".
WHAT IS DUBAI WORLD?
The emirate's flag bearer in global investments
Has a central role in the direction of Dubai's economy
Assets include DP World, which caused a storm when trying to take over six US ports
Property arm Nakheel built The Palm Islands and The World developments
Dubai World has unveiled plans to restructure $26bn (£15.8bn) in debt, its first comment since the crisis began last Wednesday.
In a statement, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops".
The proposed restructuring process will only include its main property firms, but leave other companies, which it described as "on a stable financial footing", untouched.
Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the statement was good news.
"It shows they are still committed to their payments and it removes all fears that this is a complete default," he said.
On Sunday, the central bank of the UAE stepped in and announced a facility to provide banks with extra liquidity.
The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates.
On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt.
"[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh.
He also praised Dubai's leader, saying he managed daily "achievements". The Sheikh's comments come after almost a week of market turmoil.
It was sparked when Dubai World, Dubai's highest-profile company, said it would reschedule part of its debts.
Markets across the UAE have fallen sharply. The markets in both Dubai and Abu Dhabi fell by about 6% for the second day in a row. Qatar's main index closed down 8.3%.
But major Western markets appear to be steadying, with all the main European stock markets higher in morning trade on Tuesday.
Debt restructuring
The UAE president said the Gulf region would not slip due to what he called the global financial crisis.
Sheikh Khalifa also praised the ruler of Dubai - who is also his UAE vice president, prime minister and defence minister - saying Sheikh Mohammed bin Rashid al-Maktoum and his cabinet "face every morning challenges, but plan and remove all obstacles to score achievements".
WHAT IS DUBAI WORLD?
The emirate's flag bearer in global investments
Has a central role in the direction of Dubai's economy
Assets include DP World, which caused a storm when trying to take over six US ports
Property arm Nakheel built The Palm Islands and The World developments
Dubai World has unveiled plans to restructure $26bn (£15.8bn) in debt, its first comment since the crisis began last Wednesday.
In a statement, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops".
The proposed restructuring process will only include its main property firms, but leave other companies, which it described as "on a stable financial footing", untouched.
Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the statement was good news.
"It shows they are still committed to their payments and it removes all fears that this is a complete default," he said.
On Sunday, the central bank of the UAE stepped in and announced a facility to provide banks with extra liquidity.
The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates.
On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt.
"[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh.
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