The mordern emirate of Dubai was created with the formation of the United Arab Emirates in 1971. However, written accounts documenting the existence of the city have existed at least 150 years prior to the formation of the UAE. Dubai shares within a federal framework, legal, political, military and economic functions, with the other emirates, although each emirate has jurisdiction over some functions such as civic law enforcement and provision and upkeep of local facilities. Dubai has the largest population and is the second largest emirate by area, after Abu Dhabi.Revenues from Petroleum and Natural Gas contribute to less than 3% of Dubai's US$ 46 billion economy (2006).A majority of the emirate's revenues are from the Jebel Ali Free Zone (JAFZ) and, increasingly, from tourism and other service businesses.

With enormous construction and development in various industries, Dubai has attracted world-wide attention through innovative real estate projects, sports events and conferences. However, this increased attention, coinciding with its emergence as a world business hub, has also highlighted potential human rights issues concerning its largely immigrant workforce.

The earliest recorded mention of Dubai is in 1095 CE, in the Arabic book "Mu`jam ma asta`jam min asmâ' al-bilâd wal- mawâdi`" (معجم ما استعجم من أسماء البلاد والمواضع) by Abdullah Bin Abdul-Aziz Al-Bakri Al-Andalusi. He refers to 'Dubai' as a vast place. Later, in 1587 CE, the Venetian pearl merchant Gaspero Balbi mentions the name of Dubai as one of the places where Venetians worked. There are records of the town of Dubai from 1799. Earlier in the 18th century the Al Abu Falasa lineage of Bani Yas clan established itself in Dubai which was a dependent of the settlement of Abu Dhabi until 1833.
Simplified family tree showing the line of succession and dates in power
Simplified family tree showing the line of succession and dates in power

On 8 January 1820, the sheikh of Dubai was a signatory to the British sponsored "General Treaty of Peace" (the General Maritime Treaty). In 1833, the Al Maktoum dynasty of the Bani Yas tribe left the settlement of Abu Dhabi and took over the town of Dubai, "without resistance". From that point on, Dubai, a newly independent emirate was constantly at odds with the emirate of Abu Dhabi. In 1835, Dubai and the rest of the Trucial States signed a maritime truce with Britain and a "Perpetual Maritime Truce" about two decades later. Dubai came under the protection of the United Kingdom by the "Exclusive Agreement" of 1892, with the latter agreeing to protect Dubai against any potential attacks from the Ottoman empire.

Like its neighbours, Abu Dhabi, Ras al-Khaimah, Sharjah and Umm al-Qaiwain, its position on the route to India made it an important location. In March 1892, the Trucial States were created. The town of Dubai was an important port of call for foreign tradesmen (chiefly those from India), who settled in the town. Until the 1930s, the town was known for its pearl exports.

On 2 December 1971 Dubai, together with Abu Dhabi and four 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. The current ruler of Dubai is Mohammed bin Rashid Al Maktoum. Like his older brother and preceeding ruler Maktoum bin Rashid Al Maktoum, he is also the Vice President and the Prime Minister of the UAE.

According to the census conducted by Statical Center of Dubai, the population of the emirate was 1,422,000 as of 2006, which included 1,073,000 males and 349,000 females. As of 1998, 17% of the population of the emirate was made up of UAE nationals. Approximately 85% of the expatriate population (and 71% of the emirate's total population) was Asian (chiefly Indian, Pakistani, Sri Lankan and Filipino). About 3% of the total population of Dubai was categorized as "Western". In addition, 16% of the population (or 288,000 persons) lived in collective labour accomodation were not identified by ethnicity or nationality, but were thought to be primarily Asian. The median age in the emirate was about 27 years. The crude birth rate, as of 2005, was 13.6%, while the crude death rate was about 1%.

Although Dubai's official language is Arabic, English, Hindi, Urdu, Malayalam and Tagalog are widely spoken. Article 7 of the UAE's Provisional Constitution declares Islam the official state religion of the Union. The Government funds or subsidizes almost 95 percent of Sunni mosques and employs all Sunni imams; approximately 5 percent of Sunni mosques are entirely private, and several large mosques have large private endowments.

Dubai has large expatriate communities of Hindus, Sikhs, and Christians. Non-Muslim groups can own their own houses of worship, where they can practice their religion freely, by requesting a land grant and permission to build a compound. Groups that do not have their own buildings must use the facilities of other religious organizations or worship in private homes. Non-Muslim religious groups are permitted to openly advertise group functions, however, proselytizing or distributing religious literature is strictly prohibited under penalty of criminal prosecution, imprisonment, and deportation for engaging in behaviour offensive to Islam.

Dubai's gross domestic product as of 2006 was US$ 46 billion. Revenues from oil and natural gas accounted for less than 3% of the emirate's revenues. It is estimated that Dubai produces 240,000 barrels of oil a day and substantial quantities of gas from offshore fields. The emirate's share in UAE's gas revenues is about 2%. Dubai's oil reserves have diminished significantly and are expected to be exhausted in 20 years. [10]

Historically, Dubai and its twin across the Dubai creek, Deira (independent at that time), became important ports of call for Western manufacturers. Most of the new city's banking and financial centres were headquartered in the port area. Dubai maintained its importance as a trade route through the 1970s and 1980s. The city of Dubai has a free trade in gold and until the 1990s was the hub of a "brisk smuggling trade" of gold ingots to India, where gold import was restricted.

Dubai is an important tourist destination and its port, Jebel Ali, constructed in the 1970s, has the largest man-made harbour in the world. Dubai is also increasingly developing as a hub for service industries such as IT and finance, with the establishment of a new Dubai International Financial Centre (DIFC). The government has set up industry-specific free zones throughout the city. Dubai Internet City, combined with Dubai Media City as part of TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority) is one such enclave whose members include IT firms such as EMC Corporation, Oracle Corporation, Microsoft, and IBM, and media organisations such as MBC, CNN, Reuters and AP.

The government's decision to diversify from a trade-based but oil-reliant economy to one that is service and tourism-oriented has made real estate more valuable, resulting in the property appreciation from 2004–2006. Large scale real estate development projects, undertaken by firms such as Emaar Properties, have led to the construction of many skyscrapers such as the Emirates Towers and the world's tallest hotel, the Burj al-Arab. [11] Burj Dubai, also being constructed by Emaar Properties, is expected to become the world's tallest structure. [12]

The Dubai Stock Exchange (DIFX) was opened in September 2005 with 19 local and international banks and regional and international issuers. In 2006, 3,682,000 shares worth US$ 26,412,000 was traded. Market capitalization in 2006 was approximately US$ 20 million.

Living conditions of the over 250,000 expatriot labourers in Dubai who live in conditions described by Human Rights Watch as being "less than human" [13] have often been criticized. [14] NPR reports that workers "typically live eight to a room, sending home a portion of their salary to their families, whom they don't see for years at a time." The BBC has reported that "local newspapers often carry stories of construction workers allegedly not being paid for months on end. They are not allowed to move jobs and if they leave the country to go home they will almost certainly lose the money they say they are owed. The names of the construction companies concerned are not published in the newspapers for fear of offending the often powerful individuals who own them." [15]. In December 2005, the Indian consulate in Dubai submitted a report to the Government of India detailing labour problems faced by Indian expatriates in the emirate. The report highlighted delayed payment of wages, substitution of employment contracts, premature termination of services and excessive working hours as being some of the challenges faced by Indian workers in the city. [16] On 21 March 2006, workers at the construction site of Burj Dubai, upset over low wages and poor working conditions rioted, damaging cars, offices, computers, and construction tools.

Prostitution, though illegal by law, is conspiciously present in the emirate because of an economy that is largely based on tourism and trade. According to the World Sex Guide, a website catering to sex tourists, Russian and Ethiopian women are the most common prostitutes, while Indian prostitutes are part of a well organized trans-Oceanic prostitution network.

The Dubai International Airport, the hub for Emirates Airlines, services the city of Dubai and other emirates in the country. The airport served a total of over 28 million passengers and over 230,000 airlines in 2006. [18] A third terminal is currently under construction and is due to open in 2007. The new terminal will be dedicated to Emirates Airline and will fully support the new Airbus A380. The development of the [Dubai World Central International Airport]], currently under construction, was announced in 2004. The first part is expected to be completed by 2008.

Dubai has large bus system that services 69 routes and transported over about 90 million people in 2006.The (RTA) announced in 2006 that an additional 620 new buses will be added to its fleet of 170 double decker buses.[19] Dubai also has an extensive taxi system, by far the most frequently used means of public transport within the emirate. Taxicabs are both government and private owned.

A $3.89 billion Dubai Metro project under construction for the emirate. The Metro system is expected to be partially operational by 2009 and fully operational by 2012. The metro will comprise two lines: the Green Line from Rashidiya to the main city center and the Red Line from the airport to Jebel Ali. The Dubai Metro (Green and Blue Lines) will have 70 kilometers of track and 43 stations, 33 above ground and ten underground. One of the more traditional methods of getting across Bur Dubai to Deira is through abras, small boats that ferry passengers across the Dubai creek, between abra stations in Bastakiya and Bani Yas road.

The Dubai International Airport, the hub for Emirates Airlines, services the city of Dubai and other emirates in the country. The airport served a total of over 28 million passengers and over 230,000 airlines in 2006. [18] A third terminal is currently under construction and is due to open in 2007. The new terminal will be dedicated to Emirates Airline and will fully support the new Airbus A380. The development of the [Dubai World Central International Airport]], currently under construction, was announced in 2004. The first part is expected to be completed by 2008.

Dubai has large bus system that services 69 routes and transported over about 90 million people in 2006.The (RTA) announced in 2006 that an additional 620 new buses will be added to its fleet of 170 double decker buses.[19] Dubai also has an extensive taxi system, by far the most frequently used means of public transport within the emirate. Taxicabs are both government and private owned.

A $3.89 billion Dubai Metro project under construction for the emirate. The Metro system is expected to be partially operational by 2009 and fully operational by 2012. The metro will comprise two lines: the Green Line from Rashidiya to the main city center and the Red Line from the airport to Jebel Ali. The Dubai Metro (Green and Blue Lines) will have 70 kilometers of track and 43 stations, 33 above ground and ten underground. One of the more traditional methods of getting across Bur Dubai to Deira is through abras, small boats that ferry passengers across the Dubai creek, between abra stations in Bastakiya and Bani Yas road.

Dubai has a well established network of print, radio, television and electronic media to cater to the needs of the city. Dubai has courted many media and technology companies which has allowed the city to become a major media hub. The city has over half a million telephone and fascimile subscribers. There are about 180,000 internet subscribers. While there are multiple international channels available to residents through cable, satellite and radio connections, local channels are available from the Arabian Radio Network and Dubai Media Incorporated .

Many international news agencies and network news channels operated out of the Dubai Media City and Dubai Internet City. Reuters, APTN, MBC, CNBC Arabiya, Bloomberg L.P., BMG, Showtime Arabia, BBC and CNN have all set up regional offices in the area. There are also a number of local publishing companies, including Explorer Publishing, ITP and Motivate. Etisalat currently is the leading internet provider in the emirate Du (telco) , a new telecommunication company, will also provide internet services in the emirate. Internet content is strongly regulated for pronography and for content that might be considered offensive in an Islamic state. Emirates Media and Internet (a division of Etisalat) notes that as of 2002, 76% of internet users are male. About 60% of internet users were Asian, while 25% of users were Arab. Dubai enacted an Electronic Transactions and Commerce Law in 2002 which deals with digital signatures and electronic registers. It prohibits Internet Service Providers (ISPs) from disclosing information gathered in providing services. The penal code also contains some provisions; however it does not address cyber crime or data protection.