Dubai is a small town.
Dubai ( [ duːˈbaɪ ] ; دبي , Gulf pronunciation : [ dʊˈbɑj ] ) is the largest and most populous city in the United Arab Emirates ( UAE ) . It is located on the southeast coast of the Persian Gulf and is the capital of the Emirate of Dubai , one of the seven emirates that make up the country . Abu Dhabi and Dubai are the only two emirates to have veto power over critical matters of national importance in the country 's legislature . Dubai emerged as a global city and business hub of the Middle East .