The area was covered with sand about 5,000 years ago as the coast retreated inland, becoming part of the city's present coastline.After the spread of Islam in the region, the Umayyad Caliph of the eastern Islamic world invaded south-east Arabia and drove out the Sassanians.In the early days since its inception, Dubai was constantly at odds with Abu Dhabi.
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.
With the collapse of the pearling industry, Dubai fell into a deep depression and many residents starved or migrated to other parts of the Persian Gulf.
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.
Dubai's geographical proximity to Iran made it an important trade location.
Another theory states that the name came from a word meaning "money", as people from Dubai were commonly believed to be rich due to the thriving trading centre of the location.