The history of Dubai can be traced to 1799 where records show that [...]]]> One would hardly do justice to this magnificent tourist destination and world shopping centre if he/she does not mention oil and its discovery as this is what has given rise to this “jewel” in the Arabian Peninsula.

The history of Dubai can be traced to 1799 where records show that it was a dependent on Abu Dhabi; and although it later seceded, it was not able to establish its autonomy until almost 150 years later when it made its first shipment of oil in the 1960s.

Today, the state of Dubai is a far cry from what it was because it is the major banking centre for the Middle East, and is leading in infrastructure and telecommunications systems in the area. At the time that Dubai was started, nobody would have guessed that it would get to grow to such magnitudes like it has today.  Originally, it was taken over by the Bani Yas tribe under the leadership of the Maktoum family, who up to date, still rules it.

Actually, they have done a good job of leading this state from its former years as a settlement to the financial and trading point that it is today. Considering that the trade of the earlier inhabitants of Dubai and herding goats and sheep were on the rise, it also produced a large amount of the date crops as well as pearl divers and collectors. Sooner than later, Dubai started inviting tradesmen from India and other parts of the Middle East to participate in trade in its souks (markets) because then it had the largest in the Middle East. Under the Trucial States protection agreement treaty with the British, Dubai was able to establish her roots in modern trade which until today is its lifeline. When the British left shortly after the discovery of oil, Dubai joined forces with its sister states that stretched out along the Arabian Peninsula and these were Ras Al Khaima, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain and Fujaira, and together they formed a seven state United Arab Emirates.

The leadership of the Maktoum family has been credited with the proper use of all the oil revenues that are generated from this liquid gold. Although its oil production is modest when compared to the billions of cubic meters of crude oil that is produced in the region, this state makes the utmost use of the money that it gets.

With time, the ruling family led the state to developing one of the best communications and transport systems; their international airports, harbors and ports that can only be equaled to the advanced countries alone. Soon, consortiums that were exploring for oil in the Middle East flocked Dubai and this is what helped improve its banking system making it among the best in the world today.

The rulers of Dubai have continually allowed and encouraged liberalism in trade because they have realized that with capitalism, everyone works hardest for self gratification and at the end of the day, the government earns decent revenue from taxes.