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Dubai is the second largest emirate in the federation after Abu Dhabi. The emirate is located on the Persian Gulf, southwest of Sharjah and northeast of Abu Dhabi, and reaches into the interior. The town of Hatta is a segregated portion of the emirate of Dubai and borders Wajajah, Oman.

A post office of British India was opened August 19, 1909. It used the stamps of India on mail, with postmark "Dubai Persian Gulf", until India's independence in 1947, then stamps of Pakistan until March 31, 1948. Pakistan also becoming independent, the British government set up a postal administration for Eastern Arabia and used overprinted British stamps until January 7, 1961, when Dubai issued its own stamps inscribed "Trucial States". (Despite the name, these were only on sale in Dubai's post office.)

The official language is Arabic, but English and Hindi are widely spoken.

Nearly all the commercial establishments are run by expatriates with a silent local partner who merely "rents" the business license for a negotiated annual fee without taking part in any capital investment. The numerous free trade zones allow for full expatriate ownership, but are only suitable for large businesses.

Non-Muslims in the country are free to practice their religion but may not proselytize publicly or distribute religious literature. The Government follows a policy of tolerance towards non-Muslim religions and, in practice, interferes very little in the religious activities of non-Muslims.

Islam is the official religion of all the emirates. A vast majority of the people are Sunnis. There are foreign minority Hindus and Christians as well. Dubai is the only Emirate to house a Hindu temple.

The government's vision to diversify from a trade based, but oil reliant economy to one that is service and tourism oriented, has been conducive to the growth of real estate corporations such as Emaar Properties, and Nakheel. Corporate office enclaves on Sheikh Zayed road were developed to shift Dubai's traditional business area from the creek to the western parts of the city.

The ruler of Dubai is H.H. Sheikh Maktoum bin Rashid Al Maktoum, who is also the Prime Minister of the federation of the United Arab Emirates. The crown prince is H.H. Sheikh Mohammed bin Rashid Al Maktoum, one of the emir's younger brothers.

The annual Dubai Shopping Festival (DSF) draws shoppers from the Indian subcontinent and around the region. Other, smaller shopping festivals such as Dubai Summer Surprises are held throughout the year.

Dubai is fairly unique in that its population consists mainly of expatriates, with UAE Nationals (Emiratis) constituting the minority. The vast majority of these expatriates come from the Indian subcontinent and the Philippines. The UAE government does not allow any form of naturalization or permanent residence to expatriates. Even children born in the country are not granted citizenship, unless a parent is a UAE national. Discrimination against Asian expatriates is common. Salaries for lesser qualified citizens are usually several times that of a much higher qualified expatriate. Reports of Emirati employers defaulting on several months salaries are quite common. Expatriates from Western countries however, do not face such discrimination.