Located in eastern Dubai in Deira, Al Dhagaya forms part of Dubai's northeastern coast along the Persian Gulf.

One of the more populous residential areas of west Deira, Al Dhagaya also has a prominent economic district with souks and traditional markets.

Additionally, several other traditional shops stores such as ARY Jewellery, Joy Alukkas Jewellery and the Dubai Fish and Vegetable Market are located in Al Dhagaya.

Al Dhagaya's northern periphery lies along the Dubai Corniche; the Al Shindagha Tunnel, which connects Deira to Bur Dubai, runs through the northern coast of Al Dhagaya.

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