Since I am living in Dubai i could throw some light on the probable reason for your visa application being declined.

During November and December 2006 the Immigration Department stopped issuing visit visas for Indians, Bangladeshi and Pakistani nationals. The reason being that the annual quotas of visas allocated for these nationalities was already exhausted. In order to balance entry and exits , this suspension was done without making any public announcements.

This was also done keeping in mind the huge flow of tourists visiting dubai during the shopping festival starting december 20, 2006 until february 2. 2007.

This does not in anyway imply that when ur application is resubmitted , it will necessarily be rejected.
Keep your fingers crossed .