Dubai has a hot arid climate. Summers in Dubai are extremely hot,windy and dry, with an average high around 40 °C and overnight lows around 30 °C. Sunny days can be expected throughout the year. Winters are warm and short with an average high of 23 °C and overnight lows of 14 °C.

Dubai's government operates within the framework of a constitutional monarchy, and has been ruled by the Al Maktoum family since 1833. The current ruler, Mohammed bin Rashid Al Maktoum, is also the Prime Minister of the United Arab Emirates and member of the Supreme Council of the Union (SCU). Dubai appoints 8 members in two-term periods to the Federal National Council (FNC) of the UAE, the supreme federal legislative body.The Dubai Municipality (DM) was established by the then ruler of Dubai, Rashid bin Saeed Al Maktoum in 1954 for purposes of city planning, citizen services and upkeep of local facilities.

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°16′11″N 55°18′34″E / 25.2697°N 55.3095°E / 25.2697; 55.3095 and covers an area of 4,114 km² (1,588 mi²), which represents a significant expansion beyond its initial 1,500 mi² designation due to land reclamation from the sea.

Very little is known about pre-Islamic culture in the south-east Arabian peninsula, except that many ancient towns in the area were trading centers between the Eastern and Western worlds. The remnants of an ancient mangrove swamp, dated at 7,000 years, were discovered during the construction of sewer lines near Dubai Internet City. The area had been covered with sand about 5,000 years ago as the coastline retreated inland, becoming a part of the city's present coastline.

Prior to Islam, the people in this region worshiped Bajir (or Bajar).The Byzantine and Sassanian (Persian) empires constituted the great powers of the period, with the Sassanians controlling much of the region. 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. Excavations by the Dubai Museum in the region of Al-Jumayra (Jumeirah) found several artifacts from the Umayyad period.

The earliest recorded mention of Dubai is in 1095, in the "Book of Geography" by the Andalusian-Arab geographer Abu Abdullah al-Bakri. The Venetian pearl merchant Gaspero Balbi visited the area in 1580 and mentioned Dubai (Dibei) for its pearling industry. Documented records of the town of Dubai exist only after 1799.

In the early 19th century, the Al Abu Falasa clan (House of Al-Falasi) of Bani Yas clan established Dubai, which remained a dependent of Abu Dhabi until 1833. On 8 January 1820, the sheikh of Dubai and other sheikhs in the region signed the "General Maritime Peace Treaty" with the British government. In 1833, the Al Maktoum dynasty (also descendants of the House of Al-Falasi) of the Bani Yas tribe left the settlement of Abu Dhabi and took over Dubai from the Abu Fasala clan without resistance.

Dubai came under the protection of the United Kingdom by the "Exclusive Agreement" of 1892, with the latter agreeing 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, which were the region's main trade hubs at the time.

Dubai's geographical proximity to Iran made it an important 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. Dubai was known for its pearl exports until the 1930s; pearling was damaged irreparably by World War I, and later on by the Great Depression in the 1930s. With the collapse of pearling many residents migrated to other parts of the Persian Gulf.

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.

Border disputes between the emirates continued even after the formation of the UAE; it was only in 1979 that a formal compromise was reached that ended hostilities. Electricity, telephone services and an airport were established in Dubai in the 1950s, when the British moved their local administrative offices there from Sharjah. In 1966 the town joined the newly independent country of Qatar to set up a new monetary unit, the Qatar/Dubai Riyal, after the devaluation of the Persian Gulf rupee. Oil was discovered in Dubai the same year, after which the town granted concessions to international oil companies. The discovery of oil led to a massive influx of foreign workers, mainly Indians and Pakistanis. The city's population from 1968 to 1975 grew by over 300 percent, by some estimates.

On 2 December 1971 Dubai, together with Abu Dhabi and five other emirates, formed the United Arab Emirates after former protector Britain left the Persian Gulf in 1971. In 1973, Dubai joined the other emirates to adopt a uniform currency: the UAE dirham. In the 1970s, Dubai continued to grow from revenues generated from oil and trade, even as the city saw an influx of immigrants fleeing the civil war in Lebanon. The Jebel Ali port (reputedly the world's largest man made port) was established in 1979. Jafza (Jebel Ali Free Zone) was built around the port in 1985 to provide foreign companies unrestricted import of labour and export capital.