History of Dubai

Settlements dating from the 5th and 6th centuries AD have been recently uncovered in the now upmarket suburb of Jumeirah, suggesting that Dubai was an important stop off point for merchants serving Iraq - the then Islamic epicentre of the day.

It was, however, pearl trading that put Dubai on the international map and in 1580 Venetian jeweller Gasparo Balbi made the first ever written reference to the area whilst on an expedition to assess its pearling potential.

The following centuries saw the bounty laden ships of the European colonisers come and go on their journeys to the Far East, and although much of the population earned a reasonable living from the rich pearl beds of this coastal region, piracy proved too a large temptation for many.

Indeed, during the 19th Century the area became known as the Pirate Coast prompting the British to stage a massive naval bombardment in a bid to protect their lucrative nautical interests. This display of military prowess cowed the coastal sheiks into signing a non aggression pact, which clamped down on piracy in 1820, in exchange for assurance from the British that they would no longer interfere with their domestic affairs.

Amongst this group of signatories was the Sheik of Dubai whose fiefdom was significantly smaller than that of his neighbours - the Maktoum clan of neighbouring Abu Dhabi. This deficit in size and power led to his demise in 1833 when the clan marched into Dubai and seized power. The Maktoum family still rule Dubai to this day.

During the decades following this takeover the Maktoums established themselves in the Shindagha area making the most of its easy access to the Gulf for pearling, and the creek for trade and business.

Dubai began to enjoy profitable trade relationships with India and Persia encouraging many foreign merchants to set up shop in the bustling, new city-port. This influx of diverse commercial talent quickly earned Dubai the reputation of a town that was not only open for business but one that also welcomed non Arabs with open arms.

By the turn of the 20th Century Dubai had firmly established itself as a major hub for entrepôt trade and with a population of over 10,000 was proving a worthy rival to its flourishing neighbours Abu Dhabi. Sheik Maktoum capitalised on the success generated by this relaxed trade environment by abolishing commercial taxes completely - a move that saw the boom town's population double to 20,000 in the first two decades of the century.

The steady rule of the Maktoums gave Dubai the stability - apart from a few turbulent years during the depressed 1930's - to thrive during the ensuing decades. The economy diversified, bolstering its identity as a regional hub and attracting foreign banks and corporations. There was also an extensive modernisation program which included improvements such as the widening and deepening of the creek, the building of the Al Maktoum bridge as well as a road tunnel, the opening of the lustrous Al Maktoum Hospital and in 1959 the opening of Dubai International Airport.

The late sixties saw the discovery of oil in Dubai and the petrodollar ensured the city's continued prosperity with an average annual income of around \$3 billion by the 1980's. Oil, however, only accounted for about 10% of Dubai's revenue, but this bonus went a long way in helping the region develop the infrastructure required to make the most of its core economic activities - trade and commerce.

Today Dubai literally bristles with the iconic landmarks that symbolise its phenomenal success and cultural diversity. Mosques nestle side by side with the gleaming headquarters of 21st Century multinationals. Tourism too makes its mark on the skyline with luxury hotels springing up to cater for the ever growing multitude of holiday makers who flock to Dubai's glorious beaches and extravagant lidos.

Although no more than a small city-state, Dubai's continued growth, combined with its heavyweight ambitions, look set to propel it to the front of the international stage in this new era of business and tourism.