The village really began to grow in the early 19th century, when some 800 members of the Bani Yas tribe, the Al Bu Falasah, moved north in 1833 and settled in Dubai at the mouth of the creek. Dubai lacked the fertile surroundings of Abu Dhabi, and so its inhabitants were committed to life on the coast, and looked to the sea for their living. The creek was a natural harbour and Dubai soon became a centre for the fishing, pearling and sea trade.
These settlers were led by the Maktoum Family, and under their leadership Dubai has prospered and it is now the business and tourism hub for a region that stretches around the globe.
Dubai’s Rulers
Dubai city has grown from an 18th century fishing village and small trading port inhabited by the Bani Yas tribe. Modern Dubai is the product of 30 years of rapid development.
Map Showing the Original Settlement
The Growth of Dubai
By the turn of the 20th century Dubai was a sufficiently prosperous port to attract settlers from Iran, India and Persia. The Deira souk on was thought to be the largest on the coast, with some 350 shops and trade and free enterprise made Dubai a natural haven for merchants.
A flourishing Indian population settled in Dubai and was particularly active in the shops and alleys of the souk. The cosmopolitan atmosphere and air of tolerance began to attract other foreigners too and by the 1930s, nearly a quarter of the 20,000 population was foreign. Some years later the British also made it their centre on the coast, establishing a political agency in 1954.
Al-Fahidi Fort in Dubai (1951). Dubai Museum now.
Graph Showing Population from 1900-2000 - see attached graph
Pattern of Growth and Reasons
International trade was the basis of Dubai’s prosperity. This gave the city an early start in development before the beginning of oil production in the 1960s. Like the other towns along the coast, Dubai was affected by the decline of the pearl industry, due to competition in the 1930s from Japanese cultured pearls, and by the drop in trade in the Second World War, but Dubai survived through its merchant skills and the ability to profit from trading with Persia and India after WWII. Also the two long rules of H.H. Shaikh Saeed Bin Maktoum from 1912 to 1958, and his son, H.H. Shaikh Rashid Bin Saeed al-Maktoum, and their business and political foresight helped to stabilise the economy. In the 1950s the creek began to silt up and H.H. Sheikh Rashid decided to have the waterway dredged. It was an ambitious and costly project but it strengthened Dubai's position as a major trading and export port. Sheikh Rashid realized what was necessary to transform Dubai into the cosmopolitan, prosperous city it is today. Sheikh Rashid along with Sheikh Zayed bin Sultan Al Nahyan is recognized as playing a key role in establishing the federation of the United Arab Emirates.
The discovery of oil in the 1960s helped this development, but Dubai oil revenues have never been as big as those in Abu Dhabi, so Dubai’s growth has always depended partly on business skill. When oil was discovered in 1966, Sheikh Rashid used the oil revenues to encourage development in Dubai, schools, hospitals, roads, a modern telecommunications network, a new port and terminal building were built at Dubai International Airport, and largest man-made harbour in the world was constructed at Jebel Ali, and a free zone was created around the port. Dubai's formula for development was becoming evident to everyone – visionary leadership, high-quality infrastructure, an expatriate-friendly environment, zero tax on personal and corporate income and low import duties. The result was that Dubai quickly became a business and tourism hub for a region. In the 1990s with oil production decreasing, Dubai took a decision to become a major international tourism destination. Tourism has paid off; in 2000 Dubai had over 3 million visitors, much more than the 850,000 population of Dubai.
Map Showing the Growth of Built-up Areas
1900
1935
1950
1966
1985
2000
Early Growth Was Centred Around Dubai Creek
Foreign Workers in Dubai
Dubai’s growth and development has depended on its ability to attract settlers and workers from both the nearby regions and from further away. Immigrant workers of many levels and from many countries make up a large percentage of the population.
The biggest numbers of workers come from the nearby countries of India, Bangladesh, Pakistan and Sri Lanka.
Next the neighbouring Arab countries like Iran and Jordan attract a sizable number of immigrants as do the Philippines and Northern Arab countries like Lebanon and Egypt. Finally European and other immigrants from countries such as the UK, South Africa also makes up a part of the immigrant population.
Table of Immigrant Workers
Many workers are from South Asia and the Philippines
Bar Graph to follow on from table
World Map Showing Worker Origins – see attached map
Dubai Time-line
Dubai’s Economy
Dubai has changed dramatically over the last three decades, becoming a major business centre with a more dynamic and diversified economy.
Dubai enjoys a strategic location and serves as the biggest re-exporting centre in the Middle East.
Dubai's formula for development has been visionary leadership, high-quality infrastructure, an expatriate-friendly environment, zero tax on personal and corporate income and low import duties. The result was that Dubai has quickly become a business and tourism hub.
Its low logistical and operational costs and excellent infrastructure, international outlook and liberal government policies are attracting investors in a big way. Activities such as trade, transport, tourism, industry and finance have shown steady growth and helped the economy to achieve a high degree of expansion and diversification.
Dubai Main Economic Indicators
Source: Dept Economic Development 2001
* GDP Gross Domestic Product
Dubai’s Economic Functions
Dubai has a number of Functions. The table below shows the percentage of the population employed in the various “Economic Sectors”.
Pie Chart Showing Key Economic Sectors
Dubai Economic Structure 2001
Source: Dept Economic Development 2001