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This was followed by the Ambassador and Carlton Hotels in In , a border dispute between Dubai and Abu Dhabi on the northern sector of their mutual border escalated into war. Despite a lack of oil, Dubai’s ruler from , Sheikh Rashid bin Saeed Al Maktoum, used revenue from trading activities to build infrastructure. It also — like its neighbours on the Trucial Coast — entered into an exclusivity agreement in which the United Kingdom took responsibility for the emirate’s security in First, in , a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira.
Then, in , fire swept through Deira, burning down most homes. Dubai has attracted world attention through large construction projects and sports events, in particular the world’s tallest building, the Burj Khalifa. The emir of Dubai was keen to attract foreign traders and lowered trade tax brackets, which lured traders away from Sharjah and Bandar Lengeh, the region’s main trade hubs at the time.
Dubai’s geographical proximity to Iran made it an important trade location. The town of Dubai was an important port of call for foreign tradesmen, chiefly those from Iran, many of whom eventually settled in the town. A flotilla of small boats from Dubai, Sharjah, Ajman and Umm al-Quwain picked up survivors but in all lives were lost in the disaster.
In the British Political Agent noted that “Many new houses and blocks of offices and flats are being built Dubai signed the first treaty of Perpetual Maritime Truce in along with other Trucial States, which was followed by a further treaty in By the beginning of the 20th century, it was an important port.
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