<P> The Gulf War of 1990 had a negative financial effect on the city, as depositors withdrew their money and traders withdrew their trade, but subsequently, the city recovered in a changing political climate and thrived . Later in the 1990s, many foreign trading communities--first from Kuwait, during the Gulf War, and later from Bahrain, during the Shia unrest--moved their businesses to Dubai . Dubai provided refuelling bases to allied forces at the Jebel Ali Free Zone during the Gulf War, and again during the 2003 Invasion of Iraq . Large increases in oil prices after the Gulf War encouraged Dubai to continue to focus on free trade and tourism . </P> <P> Dubai is situated on the Persian Gulf coast of the United Arab Emirates and is roughly at sea level (16 m or 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 1,588 sq mi (4,110 km), which represents a significant expansion beyond its initial 1,500 sq mi (3,900 km) designation due to land reclamation from the sea . </P> <P> Dubai lies directly within the Arabian Desert . However, the topography of Dubai is significantly different from that of the southern portion of the UAE in that much of Dubai's landscape is highlighted by sandy desert patterns, while gravel deserts dominate much of the southern region of the country . The sand consists mostly of crushed shell and coral and is fine, clean and white . East of the city, the salt - crusted coastal plains, known as sabkha, give way to a north - south running line of dunes . Farther east, the dunes grow larger and are tinged red with iron oxide . </P> <P> The flat sandy desert gives way to the Western Hajar Mountains, which run alongside Dubai's border with Oman at Hatta . The Western Hajar chain has an arid, jagged and shattered landscape, whose mountains rise to about 1,300 metres (4,265 feet) in some places . Dubai has no natural river bodies or oases; however, Dubai does have a natural inlet, Dubai Creek, which has been dredged to make it deep enough for large vessels to pass through . Dubai also has multiple gorges and waterholes, which dot the base of the Western Al Hajar mountains . A vast sea of sand dunes covers much of southern Dubai and eventually leads into the desert known as The Empty Quarter . Seismically, Dubai is in a very stable zone--the nearest seismic fault line, the Zagros Fault, is 200 kilometres (124 miles) from the UAE and is unlikely to have any seismic impact on Dubai . Experts also predict that the possibility of a tsunami in the region is minimal because the Persian Gulf waters are not deep enough to trigger a tsunami . </P>

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