The three-time defending champion, Federer, dominated the first set as he claimed two service breaks to wrap up the set in 28 minutes before Nadal turned around the match grabbing the following two sets to seal a 2-6, 6-4, 6-4 victory over the Swiss.

"To beat Roger is special, I am so happy,” Nadal was quoted as saying by BBC Sport.

"I was crying a little bit but that was because it has been difficult in the last three months. This comeback is special for me."

The 19-year-old Spaniard, who was playing his second tournament since his return from a three-month injury layoff, ended Federer’s record-breaking 56-match winning streak on hard courts to win his first title in Dubai.

Nadal is now 3-1 against the 24-year-old Swiss, who only lost four matches last season including a defeat to Nadal in the French Open semi-finals.

Despite his victory, the reigning French Open champion admitted Federer’s incredible dominance of the game and said that he had no chance in overtaking the number one spot from the Swiss, who is still around 2000 points clear from Nadal in the rankings.

"No way! I don't have a chance. For me he's unbelievable. I will continue with my comeback and I am just happy with that,” said Nadal.

Meanwhile, Federer praised Nadal on his performance and said he predicts an interesting rivalry between them in the future.

"I made some mistakes but I am still pleased with my game,” said the seven-time Grand Slam champion.

“It's just that Rafa was better on the day. It was a great effort by him and I think we are going to have a fantastic rivalry."

Federer is now 16-1 in 2006 while Nadal is 7-1.