"Dubai is not a terrorist state nor is it sympathetic to terrorists."
You are partly right on both counts. However, please understand that Dubai is NOT a country; it is one of the seven emirates that make up the UAE. So, the discussion about Dubai being a country (sympathetic or not) is essentially wrong.
Second, the UAE (of which Dubai is the most prominent member) was one of 3 countries (along with Saudi Arabia and Pakistan) that actually recognized, aided, and abetted the terrorist Taliban regime in Afghanistan. Their support for militant Wahabbism continues to this day as does their active support for Hamas. There is absolutely no indication that the people or the emirs in UAE have changed their minds after 9/11.
Sorry, but the UAE is definitely a terrorist-sympathetic nation (and I am not even talking about the logistics they provided to the 9/11 murderers).
So what does it mean that Dubai gets this deal? Exactly how does it compromise our security? Please be as specific as you can.