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The idea that Dubai almost became part of India might sound unbelievable today, but this little-known episode from the 1960s reveals how uncertain the political future of the Gulf was during the final years of British rule. As the sun set on the British Empire’s presence east of the Suez Canal, the Trucial States – precursors to the modern United Arab Emirates – were left searching for allies, security, and identity. In that vacuum, India briefly emerged as a possible destination for Dubai’s political realignment.
A remarkable twist in history that never materialised, the episode also highlights the deep-rooted cultural and commercial ties between India and the Gulf – ties that continue to define the modern relationship between New Delhi and Dubai.
The British exit from the Gulf
In January 1968, British Prime Minister Harold Wilson announced that the United Kingdom would withdraw its military presence from the Gulf by the end of 1971. This decision sent shockwaves through the Trucial States, a loose grouping of sheikhdoms under British protection, which included Dubai, Abu Dhabi, Sharjah and others.
The withdrawal presented a major challenge. Without British defence and diplomatic support, these emirates had to quickly decide whether to strike out on their own, band together, or seek support from powerful neighbours like Saudi Arabia, Iran – or India.
India’s long-standing influence in Dubai
The prospect that Dubai could become part of India may seem far-fetched now, but the conditions in the late 1960s made it a topic of serious informal discussion. India was already deeply embedded in the social and economic fabric of Dubai. Indian traders had been part of Dubai’s souks for centuries. By the mid-20th century, the city had become a major transit point for smuggling gold into India, making it financially dependent on Indian demand and business networks.
Indian rupees were widely used in the region, and Indians made up a significant portion of Dubai’s working population. As decolonisation loomed, some policymakers and thought leaders on both sides floated the idea that India might offer a more stable future for Dubai than going it alone.
Instead, the rulers of Abu Dhabi and Dubai moved quickly to negotiate a federation agreement, which was signed in February 1968. This became the foundation for the creation of the United Arab Emirates in December 1971.
Birth of the United Arab Emirates
The decision to form a federation rather than pursue any external merger was strategic. Sheikh Zayed bin Sultan Al Nahyan of Abu Dhabi and Sheikh Rashid bin Saeed Al Maktoum of Dubai were aware of the risks posed by regional powers. A united bloc would give the emirates greater control over their destiny.
By the end of 1971, six emirates had come together to form the UAE. The seventh, Ras Al Khaimah, joined in early 1972. While Dubai did not merge with India, its strong economic and social linkages with the subcontinent never faded – in fact, they grew stronger.
India – Dubai relationship in the present day
More than four million Indians live in the United Arab Emirates today, with close to two million in Dubai alone. From labourers and shopkeepers to CEOs and tech entrepreneurs, the Indian community has played a key role in Dubai’s transformation into a global city.
In 2022, the two nations signed the Comprehensive Economic Partnership Agreement (CEPA), which aims to increase bilateral trade to $100 billion annually. Dubai is now one of India’s top trading partners and a major destination for Indian tourists, real estate investors and students.
Despite not becoming part of India, Dubai’s identity remains closely tied to it. Bollywood films fill theatres. Indian festivals light up the city. And most importantly, the business corridor between Mumbai and Dubai remains one of the busiest in the world.
A history that echoes into the future
The notion that Dubai almost became part of India is more than just an intriguing historical anecdote. It sheds light on the fragile, formative years of the modern Gulf states and the central role that India played – even if unofficially, in shaping the region’s commercial and social backbone.
It is a reminder that global cities are often the result of overlapping identities, shared economies, and historical accidents. While the union between Dubai and India never came to pass, their destinies remain powerfully intertwined – economically, culturally and demographically. The ghost of that unrealised merger still lingers in the deep ties that bind the two today.
