The remnants of the trade eventually faded away shortly after the Second World War , when the newly independent Government of India imposed heavy taxation on pearls imported from the Arab states of the Persian Gulf. In return, the British promised to protect the Trucial Coast from all aggression by sea and to help in case of land attack. The seven sheikhs of the emirates then decided to form a council to coordinate matters between them and took over the development office. A number of undersea oil surveys were carried out, including one led by the famous marine explorer Jacques Cousteau. To this was added the 'Exclusive Agreements', signed in , which made the Trucial States a British protectorate.
When Dubai's oil exports commenced in , Sheikh Rashid bin Saeed Al Maktoum , the ruler of Dubai, was able to invest the revenues from the limited reserves found to spark the diversification drive that would create the modern global city of Dubai. However, on 27 October , the company discovered oil in commercial quantities at the Murban No. However, the wealth of oil which the rulers could see from the revenues accruing to surrounding countries such as Iran, Bahrain, Kuwait, Qatar and Saudi Arabia remained elusive. In March, it struck oil in the Upper Thamama, a rock formation that would provide many valuable oil finds. It is thought to be an incense burner. Please help improve this article by adding citations to reliable sources. This led to a group of rulers travelling to Medina , converting to Islam and subsequently driving a successful uprising against the unpopular Sassanids, who dominated the Northern coasts at the time. An Iranian destroyer group broke formation from an exercise in the lower Gulf, sailing to the Tunb islands. When the British-Trucial Sheikhdoms treaty expired on 1 December , they became fully independent. The First World War had a severe impact on the industry, but it was the economic depression of the late s and early s, coupled with the invention of the cultured pearl , that wiped out the trade. The decline of pearling resulted in extreme economic hardship in the Trucial States. The council was terminated once the United Arab Emirates was formed. The British Labour government rejected the offer. Unsourced material may be challenged and removed. To this was added the 'Exclusive Agreements', signed in , which made the Trucial States a British protectorate. The following year, Britain and a number of local rulers signed a treaty to combat piracy along the Persian Gulf coast, giving rise to the term Trucial States , which came to define the status of the coastal emirates. This contact persisted and became wide-ranging, probably motivated by the trade in copper from the Hajar Mountains , which commenced around BCE. Piracy in the Persian Gulf A map of the area in The harsh desert environment led to the emergence of the "versatile tribesman", nomadic groups who subsisted due to a variety of economic activities, including animal husbandry, agriculture and hunting. On 24 January , British Prime Minister Harold Wilson announced the government's decision, reaffirmed in March by Prime Minister Edward Heath to end the treaty relationships with the seven Trucial Sheikhdoms, that had been, together with Bahrain and Qatar, under British protection. As oil revenues increased, the ruler of Abu Dhabi, Zayed bin Sultan Al Nahyan , undertook a massive construction program, building schools, housing, hospitals and roads. The first ever national elections were held in the UAE on 16 December Furthermore, some people have had their nationality revoked. Meanwhile, Saudi Arabia laid claim to swathes of Abu Dhabi. However, the British prohibition of the slave trade meant an important source of income was lost to some sheikhs and merchants. Khawr al Udayd was claimed by Abu Dhabi at that time, a claim supported by the British. By , it had become clear the British government could no longer afford to administer and protect what is now the United Arab Emirates. Secretary of State for Defence Denis Healey reported that the British Armed Forces were seriously overstretched and in some respects dangerously under-equipped to defend the sheikhdoms.
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