Dubai was overtaken by Maktoum bin Butti, the founder of present day Al Maktoum dynasty in 1833. With an advantage of a perfect geographical positioning and thriving business opportunities, Sheikh Maktoum signed a treaty with the British in 1893 resulting in making Dubai a British protectorate and the very next year, a full tax exemption to all foreign traders was granted.

Dubai has the main entrepôt in the Persian Gulf and the busiest trading port since 1900, with commerce being the main source of revenue for the emirate.

Discovery of Oil

The major turning point in the history and fortunes of Dubai was the discovery of oil in 1966- the same year the Persian Gulf Rupee issued by the Indian government was devalued. Coupled with the joining of the newly independent country of Qatar and Dubai to create a new currency, the Riyal, it enabled Dubai to rapidly expand and grow. The first shipment of Oil in 1969, secured the future of Dubai as an autonomous state was secured along with its ability to dictate policy in later years to the United Arab Emirates (UAE).

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