The problem is that Islam is fighting a war on us, and many people have trouble distinguishing between Muslims who actively mean us harm and people who live in that part of the world and probably simply want to get rich or invest their oil money in something juicy. I don't think the Dubai deal was particularly threatening, although they were also bidding (according to a post here on FR a few days ago) on a deal to provide logistical support for various of our military bases abroad, and I was less in favor of that.
In other words, I think many people feel that Muslims cannot be trusted; I think this is not necessarily the case, but since it is Islam that has attacked us and not vice versa, it is up to them to reassure us. The Congressional thing was a bit of stupid and offensive grandstanding, and I think if Dubai had just ridden it out, there would have been a work-around, and those congress critters would have looked like idiots. Now, in the minds of many people, Dubai is going to look as if it had something to hide after all.
Or maybe they're just impatient, thin-skinned idiots who paid for and got some really lousy advice.
What other country in the world can we trust?
"Now, in the minds of many people, Dubai is going to look as if it had something to hide after all."
Probably the same chicken littles that had a problem with the deal in the first place.
The same people that use emotion instead of logic.
They will look for justification. For the rest of us we know that Dubai Ports World pulled out because they see us as a bunch of cry babies and they just want to get on with life.