came under the protection of the United Kingdom by the "Exclusive Agreement" of 1892, in which the UK agreed to protect Dubai against the Ottoman Empire. Two catastrophes struck the town during the 1800s. First, in 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira. Then, in 1894, fire swept through Deira, burning down most homes. 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. The town of Dubai was an important port of call for foreign tradesmen, chiefly those from Iran, many of whom eventually settled in the town. 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 World War I, and later on by the Great Depression in the 1930s. 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.
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. Arbitration by the British and the creation of a buffer frontier running south eastwards from the coast at Ras Hasian resulted in a temporary cessation of hostilities. Electricity, telephone services, and an
