Dubai, a great city in the desert and also the fastest growing city in the world was created with the formation of the United Arab Emirates in 1971.
Written accounts documenting the existence of Dubai have existed at least 150 years prior to the formation of the UAE. There are records of the town of Dubai from 1799.
In the 18th century the Al Abu Falasa lineage of Bani Yas clan established itself in Dubai. During that period Dubai was dependent of the settlement of Abu Dhabi. It was only in 1833 that Dubai became a independent settlement.
On 8 January 1820, the then 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". Since then, Dubai, a newly independent emirate, was constantly at odds with the emirate of Abu Dhabi. An attempt by the Qawasim pirates to take over Dubai was thwarted.
In the year 1835, Dubai and the rest of the Trucial States signed a maritime truce with Britain and two decades later a "Perpetual Maritime Truce" was signed. Dubai came under the protection of the United Kingdom (keeping out the Ottoman Turks) by the Exclusive Agreement of 1892. Like four of its neighbours, Abu Dhabi, Ras al-Khaimah, Sharjah and Umm al-Qaiwain, it's position on the route to India made it an important location.
In March 1892, the Trucial States (or Trucial Oman) were created. The rulers of Dubai fostered trade and commerce, unlike the town's neighbors. The town of Dubai was an important port of call for foreign tradesmen (chiefly Indians), who settled in the town. Until the 1930s, the town was well known for its pearl exports.
In 1966, the devaluation of the Gulf Rupee saw Dubai join the newly independent state of Qatar to set up a new monetary unit, the Qatar/Dubai riyal. With the discovery of oil 120 kilometers off the coast of Dubai, oil concessions were granted in Dubai.
In 1971, with Britain deciding to move out of the Persian Gulf, Dubai together with Abu Dhabi and five other emirates formed the United Arab Emirates on 2nd December. In 1973, Dubai and the other six emirates jointly adopted the UAE dirham as a single, uniform currency.