Dubai (in Arabic: دبيّ‎, transliteration: dubaīy) can either refer to one of the seven emirates that constitute the United Arab Emirates (UAE) in the eastern Arabian Peninsula, or that emirate's main city, sometimes called "Dubai city" to distinguish it from the emirate.

The modern emirate of Dubai was created with the formation of the United Arab Emirates in 1971. However, written accounts documenting the existence of the city have existed at least 150 years prior to the formation of the UAE. Dubai shares legal, political, military and economic functions with the other emirates within a federal framework, although each emirate has jurisdiction over some functions such as civic law enforcement and provision and upkeep of local facilities. Dubai has the largest population and is the second largest emirate by area, after Abu Dhabi. With Abu Dhabi, it is one of only two emirates to possess veto power over critical matters of national importance in the country's legislature. Dubai has been ruled by the Al Maktoum dynasty since 1833. The emirates' current ruler, Mohammed bin Rashid Al Maktoum, is also the Prime Minister and Vice President of the UAE.

A majority of the emirate's revenues are from trade, manufacturing and financial services. Revenues from petroleum and natural gas contribute less than 6% (2006) of Dubai's US$ 37 billion economy (2005). Dubai has attracted world-wide attention through innovative real estate projects and sports events.

Below are some of the reasons why dubai is the worlds favourite destination:

Dubai is situated on the Persian Gulf coast of the United Arab Emirates and is roughly at sea level (16 m/52 ft above). The emirate of Dubai shares borders with Abu Dhabi in the south, Sharjah in the northeast, and the Sultanate of Oman in the southeast. Hatta, a minor exclave of the emirate, is surrounded on three sides by Oman and by the emirates of Ajman (in the west) and Ras Al Khaimah (in the north). The Persian Gulf borders the western coast of the emirate. Dubai is positioned at 25.2697° N 55.3095° E and covers an area of 4,114 km² (1,588 mi²).

Dubai Creek runs northeast-southwest through the city. The eastern section of the city forms the locality of Deira and is flanked by the emirate of Sharjah in the east and the town of Al Aweer in the south. The Dubai International Airport is located south of Deira, while the Palm Deira is located north of Deira in the Persian Gulf. Much of Dubai's real estate boom is concentrated to the west of the Dubai Creek, on the Jumeirah coastal belt. Port Rashid, Jebel Ali, Burj Al Arab, the Palm Jumeirah and theme based free zone clusters such as Business Bay are all located in this section. Five main routes — E 11 (Sheikh Zayed Road), E 311 (Emirates Road), E 44 (Dubai-Hatta Highway), E 77 (Dubai-Al Habab Road) and E 66 (Oud Metha Road) — run through Dubai, connecting the city to other towns and emirates. Additionally, several important intra-city routes, such as D 89 (Al Maktoum Road/Airport Road), D 85 (Baniyas Road), D 75 (Sheikh Rashid Road), D 73 (Al Dhiyafa Road), D 94 (Jumeirah Road) and D 92 (Al Khaleej/Al Wasl Road) connect the various localities in the city. The eastern and western sections of the city are connected by Al Maktoum Bridge, Al Garhoud Bridge, Al Shindagha Tunnel, Business Bay Crossing and Floating Bridge.

Dubai has a hot and, at times, humid climate (drier during extreme heat) with many months recording temperatures of over 40 °C (104 °F). Rainfall is generally light, with a mean of about 150 millimetres (6 in) per year; precipitation is usually centered around January, February and March. However, heavy rain is not uncommon in Dubai during the winter months and January 2008 saw a record of 120mm (or 5") of rain falling in just 24 hours, [32] The mean humidity in Dubai is about 60% and is higher during the cooler winter months.

The Economy of Dubai is valued at US$ 46 billion (2006). The International Herald Tribune has described it as "centrally-planned free-market capitalism." Although Dubai's economy was built on the back of the oil industry, revenue from petroleum and natural gas currently account for less than 3% of the emirate's gross domestic product. Dubai became important ports of call for Western manufacturers. Most of the new city's banking and financial centres were headquartered in the port area. Dubai maintained its importance as a trade route through the 1970s and 1980s. The city of Dubai has a free trade in gold and until the 1990s was the hub of a "brisk smuggling trade" of gold ingots to India, where gold import was restricted.

Today, Dubai is an important tourist destination and port (Jebel Ali, constructed in the 1970s, has the largest man-made harbour in the world), but is also increasingly developing as a hub for service industries such as IT and finance, with the new Dubai International Financial Centre (DIFC). Transport links are bolstered by its rapidly-expanding Emirates Airline, founded by the government in 1985 and still state-owned; based at Dubai International Airport, it carried over 28 million passengers in fiscal year 2006 and 24 million the year before.

Dubai is considered to be an important tourist destination and its port, Jebel Ali, constructed in the 1970s, has the largest man-made harbor in the world. Dubai is also increasingly developing as a hub for service industries such as IT and finance, with the establishment of a new Dubai International Financial Centre (DIFC). The government has set up industry-specific free zones throughout the city. Dubai Internet City, combined with Dubai Media City as part of TECOM (Dubai Technology, Electronic Commerce and Media Free Zone Authority) is one such enclave whose members include IT firms such as EMC Corporation, Oracle Corporation, Microsoft, and IBM, and media organizations such as MBC, CNN, Reuters and AP.

Large scale real estate development projects have led to the construction of some of the tallest skyscrapers and largest projects in the world such as the Emirates Towers, the Burj Dubai, the Palm Islands and the world's tallest, and most expensive, hotel the Burj Al Arab. As of July 2007, the Burj Dubai became the world's tallest structure and is expected to be taller by several hundred feet, once construction is complete. Construction should finish in late 2008 and the building occupied by September of 2009. There will be an estimated 164 floors, the top floor at 624.1 meters, or 2,058 feet (627 m). Including the antennae and spire the total height of the Burj Dubai will be an estimated 818 meters, or 2,684 feet (818 m).

Dubai has a diverse and multicultural society. The city's cultural imprint as a small, ethnically homogenous pearling community was changed with the arrival of other ethnic groups and nationals — first by the Iranians in the early 1900s, and later by Indians and Pakistanis in the 1960s.

Major holidays in Dubai include Eid al Fitr, which marks the end of Ramadan, and National Day (December 2), which marks the formation of the United Arab Emirates. Annual entertainment events such as the Dubai Shopping Festival (DSF) and Dubai Summer Surprises (DSS) attract over 4 million visitors from across the region and generate revenues in excess of US$ one billion . Large shopping malls in the city, such as Deira City Centre, BurJuman, Mall of the Emirates and Ibn Battuta Mall as well as traditional souks attract shoppers from the region

The diversity of cuisine in Dubai is a reflection of the cosmopolitan nature of the society. Arab food is very popular and is available everywhere in the city, from the small shawarma diners in Deira and Al Karama to the upscale restaurants in Dubai's many hotels. Fast food, South Asian, Chinese cuisines are also very popular and are widely available. The sale and consumption of pork, though not illegal, is regulated and is sold only to non-Muslims, in designated areas. Similarly, the sale of alcoholic beverages is regulated. A liquor permit is required to purchase alcohol; however, alcohol is available in bars and restaurants within four or five star hotels. Shisha and qahwa boutiques are also popular in Dubai.

Hollywood and Bollywood movies are popular in Dubai. The city hosts the annual Dubai International Film Festival, which attracts celebrities from Arab and International cinema. Dubai has an active music scene, with musicians Amr Diab, Diana Haddad, Tarkan, Aerosmith, Santana, Elton John, Celine Dion and Phil Collins having performed in the city. Madonna is rumored to have played live recently for ₤7.5 million.

Football and cricket are the most popular sports in Dubai. Five teams — Al Wasl, Al-Shabab, Al-Ahli, Al Nasr and Hatta — represent Dubai in UAE League football. Current champions Al-Wasl have the second-most number of championships in the UAE League, after Al Ain. Cricket is followed by Dubai's large South Asian community and in 2005, the International Cricket Council (ICC) moved its headquarters from London to Dubai. The city has hosted several India-Pakistan matches and two new grass gounds are being developed in Dubai Sports City. Dubai also hosts the annual Dubai Tennis Championships and the Dubai Desert Classic golf tournament, both of which attract sports stars from around the world. The Dubai World Cup, a thoroughbred horse race, is held annually at the Nad Al Sheba Racecourse.

Dubai is known for its nightlife. Clubs and bars are found mostly in hotels due to the liquor laws. The New York Times listed Dubai as its travel choice for partying in 2008