 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 <unk> , the region 's main trade hubs at the time . Persian merchants naturally looked across to the Arab shore of the Persian Gulf finally making their homes in Dubai . They continued to trade with <unk> , however , as do many of the dhows in Dubai Creek today , and they named their district <unk> , after the <unk> region in southern Persia . 
