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In the early days since its inception, Dubai was constantly at odds with Abu Dhabi.

In 1947, a border dispute between Dubai and Abu Dhabi on the northern sector of their mutual border escalated into war.

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Clockwise from top left: the Burj Khalifa in Downtown Dubai; the Burj Al Arab in Jumeirah Beach; satellite image showing Palm Jebel Ali, Palm Jumeirah and The World Islands; the Al Fahidi Fort in Dubai Museum; skyscrapers in Dubai Marina; and commercial buildings in Deira.‎), which means "to creep"), referring to the slow flow of Dubai Creek inland.

1959 saw the establishment of Dubai's first telephone company, 51% owned by IAL (international Aeradio Ltd) and 49% by Sheikh Rashid and local businessmen and in 1961 both the electricity company and telephone company had rolled out operational networks.

The water company (Sheikh Rashid was Chairman and majority shareholder) constructed a pipeline from wells at Awir and a series of storage tanks and, by 1968, Dubai had a reliable supply of piped water.

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 Maktum to establish the Maktoum dynasty.

Dubai signed the General Maritime Treaty of 1820 along with other Trucial States, following the British punitive expedition against Ras Al Khaimah of 1819, which also led to the bombardment of the coastal communities of the Persian Gulf. 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.

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

On 7 April 1961, the Dubai-based MV Dara, a five thousand ton British flagged vessel that plied the route between Basra (Iraq), Kuwait and Bombay (India), was caught in unusually high winds off Dubai.

Early the next morning in heavy seas off Umm al-Quwain, an explosion tore out the second class cabins and started fires.

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.' Dubai's geographical proximity to Iran made it an important trade location.

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The captain gave the order to abandon ship but two lifeboats capsized and a second explosion occurred.

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