Page 263 - Truncal States to UAE_Neat

Chapter Seven

Dubai—Example of a City
State on the Trucial Coast

1 Dubai before the 1950s

Introduction
Dubai has in many aspects always been a typical example of the
towns of the Trucial Coast which drew their population from the
hinterland and which also experienced rapid growth as long as the
pearling industry continued to expand. A combination of geographi­
cal location, the farsightedness of its Rulers, the astuteness of its
merchants, and good fortune led to Dubai’s success in defying the
limitations of local resources to a greater extent than its neighbours.
Following in the footsteps of the Qawasim who reaped the benefits of
entrepot trade in the 18th century, Dubai became in later years
prosperous and also politically important because its merchants
exploited the various opportunities to trade with or on behalf of
neighbouring countries. Time and again people residing in Dubai
spotted ways and means of making a better living than they could
have had by relying wholly on the resources which were locally
available at that time.
Thus the development of Dubai also stands as an example that,
given the right circumstances, it is possible for a community of
merchants on the Trucial Coast to reach out beyond the resources of
their own immediate environment. In the case of Dubai the means to
add to the benefits which could be derived from pearling, fishing,
date palm agriculture or internal trade, ranged from entrepot trade,
the circumvention of customs regulations on neighbouring coasts
and smuggling, to the establishment of service industries flourishing
in the wake of rising oil production in other areas of the Gulf.
Dubai first exported oil in 1969, seven years after Abu Dhabi, and

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