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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.
However, the town's geographical location continued to attract traders and merchants from around the region.
The emir of Dubai was keen to attract foreign traders and lowered trade tax brackets, which lured traders away from Sharjah and Bandar Lengeh, the region's main trade hubs at the time.
Persian merchants naturally looked across to the Arab shore of the Persian Gulf finally making their homes in Dubai.
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.
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.
Private companies were established to build and operate infrastructure, including electricity, telephone services and both the ports and airport operators.