Dubai is one of the seven emirates of the United Arab Emirates (UAE). It is located south of the Persian Gulf on the Arabian Peninsula. Dubai refers to either one of the seven emirates that make up the United Arab Emirates on the Arabian Peninsula or that emirate's main city, sometimes called "Dubai City" to distinguish it from the emirate. The history of Dubai is not clearly known. Before Islam when Byzantine and Sassanian empires ruled, the people of this region worshiped a god called Bajir. According to history in 1580 a pearl merchant Gaspero introduce Dubai because of its pearls wealth. In early 1900s most people living in Dubai were from other countries, these people migrated from Iran, India, Bahrain, kuwait and Saudi Arabia. Until 1930, the town was known for its pearl exports.
   Dubai shares legal, political, military, and economic functions with the other emirates within a federal framework, although each emirate has jurisdiction over some functions such as civic law enforcement and provision and upkeep of local facilities. Dubai has the largest population and is the second-largest emirate by area, after Abu Dhabi. Dubai and Abu Dhabi are the only two emirates to possess veto power over critical matters of national importance in the country's legislature. Dubai has been ruled by the Al Maktoum dynasty since 1833. Its current ruler, Mohammed bin Rashid Al Maktoum, is also the Prime Minister and Vice-President of the UAE.
   The emirate's main revenues are from tourism, property, and financial services. Although Dubai's economy was originally built on the oil industry, revenues from petroleum and natural gas currently contribute less than 6% (2006) of the emirate's US$ 80 billion economy (2009). Property and construction contributed 22.6% to the economy in 2005, before the current large-scale construction boom.
   Dubai has attracted world attention through many innovative large construction projects and sports events. This increased attention, coinciding with its emergence as a global city and business hub, has highlighted labour and human rights issues concerning its largely South Asian workforce.
Reference: http://en.wikipedia.org/wiki/Dubai