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Dubai
History
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Very little is known about pre-Islamic
culture in the south-east Arabian peninsula, except that many
ancient towns in the area were trading centres between the Eastern
and Western worlds. The remnants of an ancient mangrove swamp,
dated at 7,000 years were discovered during the construction
of the Sheikh Zayed Road.
The area had been covered with sand about 5,000 years ago as
the coastline retreated inland, becoming a part of the city's
present coastline. Prior to Islam, the people in this region
were idol worshippers, who worshiped Bajar (or Bajir). The Byzantine
and Sassanian empires constituted the great powers of the period,
with the Sassanians controlling much of the region. After the
spread of Islam in the region, the Umayyad Caliph, of the eastern
Islamic world, invaded the south-east Arabia and drove out the
Sassanians. Excavations undertaken by the Dubai Museum in the
region of Al-Jumayra (Jumeirah) indicate the existence of several
artifacts from the Umayyad period. |
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The earliest recorded mention of
Dubai is in 1095, in the "Book of Geography" by the Spanish-Arab
geographer Abu Abdullah al-Bakri. The Venetian pearl merchant
Gaspero Balbi visited the area in 1580 and mentioned Dubai (Dibei)
for its pearling industry. Documented records of the town of
Dubai exist only after 1799.
In the early 18th century, the Al Abu Falasa clan of Bani Yas
clan established Dubai, which remained a dependent of Abu Dhabi
until 1833. On 8 January 1820, the sheikh of Dubai and other
sheikhs in the region signed the "General Maritime Peace Treaty"
with the British government. However, in 1833, the Al Maktoum
dynasty of the Bani Yas tribe left the settlement of Abu Dhabi
and took over Dubai from the Abu Fasala clan without resistance.
Dubai came under the protection of the United Kingdom by the
"Exclusive Agreement" of 1892, with the latter agreeing to protect
Dubai against any attacks from the Ottoman empire. Two catastrophes
struck the town during the mid 1800s.
First, in 1841, a smallpox
epidemic broke out in the Bur Dubai locality, forcing residents
to relocate east to Deira. Then, in 1894, fire swept through
Deira, burning down most homes. However, the town's geographical
location continued to attract traders and merchants from around
the region. The emir of Dubai was keen to attract foreign traders
and lowered trade tax brackets, which lured traders away from
Sharjah and Bandar Lengeh, which were the region's main trade
hubs at the time. Dubai's geographical proximity to India and
Pakistan made it an important location. The town of Dubai was
an important port of call for foreign tradesmen, chiefly those
from India, many of whom eventually settled in the town. The
town was known for its pearl exports until the 1930s. However,
Dubai's pearling industry was damaged irreparably by the events
of the First World War, and later on by the Great Depression
in the late 1920s. Consequently, the city witnessed a mass migration
of people to other parts of the Persian Gulf. Since its inception,
Dubai was constantly at odds with Abu Dhabi. In 1947, a border
dispute between Dubai and Abu Dhabi on the northern sector of
their mutual border, escalated into war between the two states.
Arbitration by the British and the creation of a buffer frontier
running south eastwards from the coast at Ras Hasian resulted
in a temporary cessation of hostilities. However, border disputes
between the emirates continued even after the formation of the
UAE; it was only in 1979 that a formal compromise was reached
that ended hostilities and border disputes between the two states.
Electricity, telephone services and an airport were established
in Dubai in the 1950s, when the British moved their local administrative
offices from Sharjah to Dubai. The town joined the newly independent
country of Qatar to set up a new monetary unit, the Qatar/Dubai
Riyal, after the deflation of the Gulf rupee.
Oil was discovered
in Dubai the same year, after which the town granted concessions
to international oil companies. The discovery of oil led to
a massive influx of foreign workers, mainly Indians and Pakistanis,
into the city. As a result, the population of the city from
1968 to 1975 grew by over 300%, by some estimates.
On 2 December 1971 Dubai, together with Abu Dhabi and five other
emirates, formed the United Arab Emirates after former protector
Britain left the Persian Gulf in 1971. In 1973, Dubai joined
the other emirates to adopt a single, uniform currency: the
UAE dirham. In the 1970s, Dubai continued to grow from revenues
generated from oil and trade even as the city saw an influx
of Lebanese immigrants fleeing the civil war in Lebanon.[25]
The Jebel Ali Free Zone, comprising the Jebel Ali port (reputedly
the world's largest man made port) was established in 1979,
which provided foreign companies unrestricted import of labour
and export capital. |
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The Persian Gulf War
of 1990 had a huge impact on the city. Economically, Dubai banks
experienced a massive withdrawal of funds due to uncertain political
conditions in the region. During the course of the 1990s, however,
many foreign trading communities first from Kuwait, during the
Persian Gulf War, and later from Bahrain, during the Shia unrest,
moved their businesses to Dubai.
Dubai provided refueling bases to allied forces at the Jebel
Ali free zone during the Persian Gulf war, and again, during
the 2003 Invasion of Iraq. Large increases in oil prices after
the Persian Gulf war encouraged Dubai to continue to focus on
free trade and tourism. The success of the Jebel Ali free zone
allowed the city to replicate its model to develop clusters
of new free zones, including Dubai Internet City, Dubai Media
City and Dubai Maritime City. The construction of Burj Al Arab,
the world's tallest freestanding hotel, as well as the creation
of new residential developments, were used to market Dubai for
purposes of tourism. |
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Since 2002, the city has seen an increase
in private real estate investment in recreating Dubai's skyline
with such projects as The Palm Islands and Burj Dubai. However,
robust economic growth in recent years has been accompanied
by rising inflation rates (at 6.2% as of 2006 when measured
against Consumer Price Index) which is attributed in part due
to the near doubling of commercial and residential rental costs,
resulting in a substantial increase in the cost of living for
residents.
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