structural:scholar_edition
Establishment of modern Dubai

Dubai is thought to have been established as a fishing village in the early 18th century and was, by 1822, a town of some 700–800 members of the Bani Yas tribe and subject to the rule of Sheikh Tahnun bin Shakhbut of Abu Dhabi. In 1822, a British naval surveyor noted that Dubai was at that time populated with a thousand people living in an oval-shaped town surrounded by a mud wall, scattered with goats and camels. The main footpath out of the village led to a reedy creek while another trailed off into the desert and merged into caravan routes.

In 1833, following tribal feuding, members of the Al Bu Falasah tribe seceded from Abu Dhabi and established themselves in Dubai. The exodus from Abu Dhabi was led by Obeid bin Saeed and Maktoum bin Butti, who became joint leaders of Dubai until Ubaid died in 1836, leaving Maktoum to establish the Maktoum dynasty.

Dubai signed the General Maritime Treaty of 1820 with the British government along with other Trucial States, following the British campaign in 1819 against the Ras Al Khaimah. This led to the 1853 Perpetual Maritime Truce. Dubai 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 1892.

In 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira. In 1896, fire broke out in Dubai, a disastrous occurrence in a town where many family homes were still constructed from barasti – palm fronds. The conflagration consumed half the houses of Bur Dubai, while the district of Deira was said to have been totally destroyed. The following year more fires broke out. A female slave was caught in the act of starting one such blaze and was subsequently put to death.

In 1901, Maktoum bin Hasher Al Maktoum established Dubai as a free port with no taxation on imports or exports and also gave merchants parcels of land and guarantees of protection and tolerance. These policies saw a movement of merchants not only directly from Lingeh, but also those who had settled in Ras Al Khaimah and Sharjah (which had historical links with Lingeh through the Al Qawasim tribe) to Dubai. An indicator of the growing importance of the port of Dubai can be gained from the movements of the steamer of the Bombay and Persia Steam Navigation Company, which from 1899 to 1901 paid five visits annually to Dubai. In 1902 the company's vessels made 21 visits to Dubai and from 1904 on, the steamers called fortnightly – in 1906, trading 70,000 tones of cargo. The frequency of these vessels only helped to accelerate Dubai's role as an emerging port and trading hub of preference. Lorimer notes the transfer from Lingeh "bids fair to become complete and permanent", and also that the town had by 1906 supplanted Lingeh as the chief entrepôt of the Trucial States.

The "great storm" of 1908 struck the pearling boats of Dubai and the coastal emirates towards the end of the pearling season that year, resulting in the loss of a dozen boats and over 100 men. The disaster was a major setback for Dubai, with many families losing their breadwinners and merchants facing financial ruin. These losses came at a time when the tribes of the interior were also experiencing poverty. In a letter to the Sultan of Muscat in 1911, Butti laments, "Misery and poverty are raging among them, with the result that they are struggling, looting and killing among themselves."

In 1910, in the Hyacinth incident the town was bombarded by HMS Hyacinth, with 37 people killed.