For years, Dubai was only a small fishing village off the coast of the Arabian Peninsula. Income came mainly from fishing and partly from selling pearls (which arose from pearl diving) to Asian countries. In the 1960s, oil was discovered near Dubai, causing a massive growth for Dubai, and in 1971 it became an official state and part of the United Arab Emirates. Together with Abu Dhabi, Dubai provided huge revenues for the Emirates, and the sky was the limit.

At the beginning of the 20th century, about 10,000 people lived in Dubai. The most populated area of Dubai was Deira, where mainly Arabs and Persians lived. In Bur Dubai, the old town of Dubai that is now made up of primarily sights and attractions, Indians mainly settled. While fishing and pearl diving were once the main sources of income, Dubai now had to find new revenue sources due to the great global economic depression. Re-exporting was the way to boost trade. Goods were imported or smuggled to Dubai, where they were further traded.

In 1951, the ‘Trucial states council’ was established, which was the predecessor of the United Arab Emirates. Around that same time, modern Dubai was taking shape as well.