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Based in Dubai or provides services in Dubai?
Offering services in Dubai.
Who cares where they are based?
There are, but on a reasonable budget no.
Will still appreciate any links.
People who prefer to support local business? Wants to speak to support in their native language? Have legal/business reasons for dealing with companies in specific countries?
Virtualprivateserver.ae is the only one I'm aware of, however there are plenty more from a simple Google search.
Some links of VPS providers in Dubai:
Bandwidth is expensive here.
Not in Dubai (Riyadh), but price is more reasonable, $8.99/month for 512 MB RAM / 2000 GB bandwith KVM VPS:
http://www.nashirnet.net/english/services/5.html
Riyadh and Dubai are not in the same country, thus geographical proximity may not matter in this case, as wiring outside Europe is pretty much bullsh#t. Outside the country's grid, it'd probably go back and forth to Frankfurt. Also Mumbai is as nearly as close to Dubai as Riyadh, and probably cheaper prices could be found in India, if the geo-proximity was a significant aspect in network connections.
This is hypothetical.
In addition to the aforementioned, there's also http://www.meinfoway.com/index.php/application/vps
http://exoticvps.com
United Arab Emirates
You can find 4 providers, but it isn't cheap...