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There was a pearl-diving and fishing community at the mouth of Dubai Creek for many centuries, but modern Dubai dates its existence to the 1830s when the Baniyas tribe under the Al-Maktoum family settled there and renounced allegiance to Abu Dhabi. Successive sheikhs encouraged contacts with outsiders, especially the British, who made Dubai a regular port of call.

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.

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.

The horse race known as the Dubai World Cup is held annually, and is the world's richest horse race with over US$15,000,000 worth of prize money.

The International Media Production Zone is a project targeted at creating a hub for printers, publishers, media production companies, and related industry segments. This project was launched in 2003 and is estimated to be completed by 2006.

Apart from donated land for the construction of churches and other religious facilities, including cemeteries, non-Muslim groups are not supported financially or subsidized by the Government. However, they are permitted to raise money from among their congregants and to receive financial support from abroad. Christian churches are permitted to openly advertise certain church functions, such as memorial services, in the press.

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.