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By the beginning of the 20th century, it was an important port.

Dubai was known for its pearl exports until the 1930s; the pearl trade was damaged irreparably by the Great Depression in the 1930s and the innovation of cultured pearls.

The first and the most probable theory says that Dubai is the Arabicized form of Persian word "Dopey" which means "two bases" and refers to the inlet (خور) which passes through the City and divides it into two parts.‎), which means "to creep"), referring to the slow flow of Dubai Creek inland.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.This crossing was finished in May 1963 and was paid for by a toll levied on the crossing from the Dubai side of the creek to the Deira side.BOAC was originally reluctant to start regular flights between Bombay and Dubai, fearing a lack of demand for seats.

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