History of Dubai

Dubai today is known for its sun, unimaginable buildings, glamour and a tax haven for the rich which has attracted the attention of everyone from all corners of the world, including me hence why I have chosen to blog about this emirate. However, its ambition to stand out from the world was no different when we look into its history which took me by surprise.

Dubai quickly used its demographic advantageous location to exploit its trade flows by initially exporting pearls to China and importing silk and porcelain which would be traded in the Middle Eastern and European markets. The pearl industry took off which the economy became strongly dependent on. Soon other countries took notice of Dubai having a strong presence as a major trading hub and in the 16^th century, Portugal made an attempt to gain control of the local economy. Its attempt was foiled as they faced resistance from the bigger nations of France, Holland and the United Kingdom. It wasn’t until 1766 did the British eventually gain control of Dubai’s ports.  Although Dubai was unable to control its waterways, it was still able to prosper from its pearl trade.

In 1894, Dubai attracted traders from around the world once again by signing a trade deal with the British which allowed free trade for foreign traders. In 1903, Sheikh Maktoum bin Hasher Al Maktoum signed a deal with a British steamship company to use its port which started 25 more prosperous years. However, in 1929, the Great Depression had arrived and problems were made worse as artificial pearls had reached the market which would bring an end to Dubai dependence on the exports of its pearls. However, due to its duty-free port, Dubai become a trading hub as a re-export business port as goods were cheaply imported which were then immediately exported into other markets.