The history of civil aviation in Dubai started in July 1937 when an air agreement was signed for a flying boat base for aircraft of Imperial Airways with the rental of the base at about 440 rupees per month – this included the guards' wages. The Empire Flying Boats started operating once a week flying eastbound to Karachi from the UK and westbound to Southampton, England. By February 1938, there were four flying boats a week.

In the 1940s, flying from Dubai was by flying boats operated by British Overseas Airways Corporation (BOAC), operating the Horseshoe route from Southern Africa via the Persian Gulf to Sydney.

Construction

Construction of the airport was ordered by the ruler of Dubai, Sheikh Rashid bin Saeed Al Maktoum, in 1959. It officially opened on 30 September 1960, at which time it was able to handle aircraft the size of a Douglas DC-3 on a 1,800-metre-long (5,900 ft) runway made of compacted sand. Three turning-areas, an apron and small terminal completed the airport that was constructed by Costain and designed by International Aeradio.

In May 1963, construction of a 2,800-metre (9,200 ft) asphalt runway started. This new runway, alongside the original sand runway and taxiway opened in May 1965, together with several new extensions to the terminal Building, hangars were erected, and Airport and Navigational aids were installed. The installation of the lighting system continued after the official opening and was completed in August 1965. During the second half of the 1960s several extensions, equipment upgrades like a VHF omnidirectional range (VOR), an instrument landing system (ILS), and new buildings were constructed. By 1969, the airport was served by 9 airlines serving some 20 destinations.

The inauguration on 15 May 1966 was marked by the visits of the first big jets, De Havilland Comets of Middle East Airlines and Kuwait Airways.

The advent of wide-body aircraft required further airport development in the 1970s and plans for a new terminal, runways, and taxiways capable of coping with international flights were drawn up. The construction of a new terminal building (now Terminal 1) consisting of a three-story building 110 m (360 ft) long with an enclosed floor area of 13,400 m2 (144,000 sq ft). A new 28 m (92 ft) control tower was also constructed.

It consisted of a series of slender columns which at their tops spread to form squares and resemble stylized palm trees. The terminal also included four inclined piers which gave access to the apron via helical ramps at their outer ends. At the eastern end of the building was a golden dome-shaped VIP suite. In the terminal, passenger handling on the main, or first floor, operational services at ground level, and public lounges and restaurants on the top floor. This new terminal opened on 15 May 1971.

The original terminal building, which was opened in 1960, was abandoned after the construction of Terminal 1 in 1971 and was demolished in the early 1990s. The terminal was located a short way west of Terminal 1 and is now an aircraft parking area.

Expansion continued in the early 1970s including ILS Category II equipment, lengthening the existing runway to 3,800 m (12,500 ft), installation of a non-directional beacon (NDB), diesel generators, taxiways, etc. This work made handling the Boeing 747 and Concorde possible. Several runway and apron extensions were carried out through the decade to meet growing demand.

In 1971, the new precision category 2 Approach and Runway Lighting System was commissioned. The construction of the Airport Fire Station and the installation of the generators were completed in December 1971 and were fully operational in March 1972. The ruler of Dubai also commissioned and inaugurated the Long-range Surveillance System on 19 June 1973.

With the expansion of the Airport Fire Services, it became necessary to find more suitable hangars. A hangar-style building was made available for use at the end of 1976. This building was strategically located midway between the runway ends to facilitate efficient operations. Additionally, a new building was constructed to house the Airport Maintenance Engineer, Electronics Engineering section, and Stores unit.

In December 1978, expansion and refurbishment of the Airport Restaurant and Transit Lounge, including a new kitchen, were completed .

In April 1984, a new runway was completed three months ahead of schedule. This runway, located 360 metres north of and parallel to the existing runway, was equipped with the latest meteorological, airfield lighting, and instrument landing systems, giving the airport a Category II classification.

By this time the airport was served by 29 airlines.

Several extensions and upgrades were also made to the terminal facilities and supporting systems. In December 1980, the airport became an ordinary member of the Airports Council International (ACI). The decline of Karachi International Airport is often attributed to the traffic Dubai diverted from it.

In 1980, a new terminal and an expansion of the current terminal was planned, with the new terminal set to open in 1981.