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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.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.Persian merchants naturally looked across to the Arab shore of the Persian Gulf finally making their homes in Dubai.
Dubai signed the first treaty of Perpetual Maritime Truce in 1820 along with other Trucial States, which was followed by a further treaty in 1853.
It 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. First, in 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira.