Dubayyalso spelled Dubaiconstituent emirate of the United Arab Emirates (formerly Trucial States or Trucial Oman). The second most populous and second largest state of the federation (area 1,510 square miles [3,900 square km]), it is roughly rectangular, with a frontage of about 45 miles (72 km) on the Persian Gulf. Dubayy’s capital, Dubai, the largest city of the federation, is on a small creek in the northeast part of the state. More than nine-tenths of the emirate’s population lives in the capital and nearby built-up sections. Dubayy is surrounded by Abū Ẓaby emirate on the south and west and by Al-Shāriqah emirate on the east and northeast. In addition, the small exclave (detached section) of Al-Ḥajarayn in the Wadi Ḥattá, more than 25 miles (40 km) from the nearest territory of Dubayy proper, belongs to the state.

The settlement of Dubai town is known from 1799. The sheikh (Arabic: shaykh) of Dubayy, then a minor, signed the British-sponsored General Treaty of Peace (1820), but the area was seemingly dependent on Abū Ẓaby until 1833. In that year, a group of Āl bū Falāsāh clansmen of the Banī Yās, chiefly pearl fishers, left Abū Ẓaby in a rivalry dispute and took over Dubai town without resistance. From then on, Dubayy became, by local standards, a powerful state and was frequently at odds with its former rulers. The Qawāsim pirates tried to take control of Dubayy, but its rulers retained their independence by playing the neighbouring sheikhdoms against each other. Together with the rest of the original Trucial States, Dubayy signed with Britain a maritime truce in 1835 and the Perpetual Maritime Truce in 1853. Its foreign relations were placed under British control by the Exclusive Agreement of 1892. When Britain finally left the Persian Gulf in 1971, Dubayy was a prominent founding member of the United Arab Emirates.

The sheikhs of Dubayy, unlike most of their neighbours, long fostered trade and commerce; Dubai was an important port by the beginning of the 20th century. Many foreign merchants (chiefly Indians) settled there; until the 1930s it was known for pearl exports. More recently, Dubai (including its twin city and commercial centre, Dayrah, on the opposite side of the creek) has become the region’s chief port for the import of Western manufactures. Most of the United Arab Emirates’ banks and insurance companies are headquartered there. After the devaluation of the gulf rupee (1966), Dubayy joined the country of Qatar in setting up a new monetary unit, the riyal. In 1973 Dubayy joined the other emirates in the adoption of a national currency, the dirham. Dubayy has free trade in gold, and there is a brisk smuggling trade in gold ingots to India, where gold imports are restricted.

In 1966 the offshore oil field of Fatḥ (Fateh) was discovered in the Persian Gulf about 75 miles (120 km) due east of Dubai, in waters where the state had granted an oil concession. By the 1970s three 20-story submarine tanks, each holding 500,000 barrels, were installed on the seabed at the site. Shaped like inverted champagne glasses, they are popularly called the “Three Pyramids of Dubayy.” Dubayy’s estimated oil reserves are less than one-twentieth those of neighbouring Abū Ẓaby, but oil income combined with trading wealth has made Dubayy a very prosperous state. A number of industrial plants, including an aluminum smelter and an associated natural gas fractionator, were built in the late 1970s near Dubai. Since the late 1980s aluminum production has greatly increased through a number of staged expansions of the smelter’s facilities.


In the early 21st century a range of transportation and construction projects were underwayunder way, including light- and urban-rail systems, a sports complex, luxury hotels, and island developments. Construction on Dubai’s prized Burj Dubai (“Dubai Tower”)—though Though interrupted by strikes held by the city’s large population of expatriate labourers—continued in 2007, when the then still-incomplete landmark became both the labourers, construction on Dubai’s prized Burj Dubai (“Dubai Tower”), as it was then known, was ongoing. Although the building’s interior was not entirely complete, upon its official opening in January 2010—as Burj Khalifa—it was easily world’s tallest building and its tallest freestanding structure. Investment in the tower and numerous other extravagant projects entailed heavy borrowing, however, and with the escalation of the global financial crisis of the previous years, Dubayy’s economy was troubled by massive debt and substantial quantities of real estate that lacked prospective buyers. New reliance upon neighbouring Abū Ẓaby—which had recently provided its financially troubled neighbour with a bailout of some $10 billion—explains to some extent the surprise decision to rename the Burj Dubai in honour of Abū Ẓaby’s emir, Sheikh Khalīfah ibn Zāyid Āl Nahyān, upon its opening. Pop. (2005 2008 est.) emirate, 1,200596,309000.