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In 1947, 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 1958, Sheikh Rashid bin Saeed Al Maktoum, used revenue from trading activities to build infrastructure.It is located on the southeast coast of the Persian Gulf and is the capital of the Emirate of Dubai, one of the seven emirates that make up the country.

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It is also a major transport hub for passengers and cargo.

By the 1960s, Dubai's economy was based on revenues from trade and, to a smaller extent, oil exploration concessions, but oil was not discovered until 1966. Dubai has recently attracted world attention through many innovative large construction projects and sports events.

Persian merchants naturally looked across to the Arab shore of the Persian Gulf finally making their homes in Dubai.

They continued to trade with Lingah, however, as do many of the dhows in Dubai Creek today, and they named their district Bastakiya, after the Bastak region in southern Persia .

This was followed by the Ambassador and Carlton Hotels in 1968.