During the time of the Shah, Iran was THE exotic destination.
As for Dubai, there are 2 Dubais. One for westerners and one for arabs. The part for westerners has alcohol and discos and hookers on the street corners. (lots of Russian girls, I hear) The other part is typical muslim UAE. (not that muslims don’t visit the ‘western’ section)
Dubai made a very smart business decision, realizing that attracting western investment and tourism meant providng the type of entertainment that westerners were used to having. Yes, they like Americans and want their continued investments and cash. They enjoy catering to the rich & famous.
They even have casinos that would make the joints in Vegas look rather paltry...