UAE Historic Background

UAE occupied a prominent position as a part of the Kingdom of Hormuz that controlled trade in the Gulf during the middle ages. By the 16th century, the Portuguese occupied Julfar near Ras al-Khaimah and they taxed the Gulf's flourishing trade with India and the Far East.

Two important tribal confederations became powerful along the coast of the lower Gulf by the mid 18th century. They were the Qawasim and the Bani Yas, the ancestors of the rulers of four of the seven emirates of UAE. The Qawasim, whose descendants now rule Sharjah and Ras al-Khaimah, were a seafaring clan based at Ras al Khaimah. Their interests clashed with those of the British who were now prominent in the Gulf. Overriding the Qawasims, the British established a garrison and imposed a Treaty of Peace on the nine Arab Sheikhdoms of the Trucial coast. Meanwhile amongst the Bedouin tribes of the interior, the Bani Yas emerged as the main power. A division within the Bani Yas in the early 19th century caused Dubai to split from Abu Dhabi.
The British established a protectorate over the Trucial Coast in 1892, which now receded into tiny enclaves of fishermen, pearl divers and Bedouin. With the collapse of the world pearl market in the early 20th century, the entire coast became abjectly poor. In 1939 Shaikh Shakhbut of Abu Dhabi granted oil concessions to foreign companies. Though oil was only discovered in 1958, the fortunes of Abu Dhabi changed dramatically. In 1966 oil was discovered in Dubai making it the region's busiest trading centre.

Britain failed to implement its plan to form a single state consisting of Bahrain, Qatar and the Trucial Coast. Bahrain and Qatar became independent and a new federation of six Arab states, the United Arab Emirates, was formed in Dec 1971. Ras al-Khaimah joined the UAE in Feb 1972. Despite extreme contrasts in the economic status of the seven states, the UAE is amongst the most stable countries in the Arab world.