Brief History of Dubai

Prior to the discovery of oil, Dubai's proximity to Iran made it an important trade location. The city was an important stop off for tradesmen, mainly from Iran, many of whom eventually moved to Dubai. By the start of the twentieth century, Dubai had established itself as an important port and until the early 1930s it was known for its pearl exports. The pearl trade was damaged beyond repair by the Great Depression in the 1930s and innovation of cultured pearls. With the collapse of the pearling industry, Dubai fell into a deep depression and many residents starved or migrated. During its early development, Dubai was constantly in conflict with Abu Dhabi. In 1947 a border dispute broke out on the northern part of their border which escalated into war. The British arbitrated, leading to the creation of a buffer frontier running south east from the coast at Ras Hasian that temporarily ended hostilities. Oil was discovered in 1966 which helped to dramatically accelerate the early development of the city. Today remaining oil reserves are limited and the city generates less than 5% of its revenues form oil with the main revenues now being tourism, aviation, real estate and financial services. It is also famous for iconic sky scrapers and boasts the world's tallest building, the Burj Khalifa, but has come under heavy criticism for human rights violations relating to the city's largely South Asian workforce. Dubai and Abu Dhabi are the only two emirates to have veto power over important matters of national importance in the country's legislation.