Dahab based on a Nabataean port from the 1st to 2 Century BCE. It was part of a major trade route from the southern Arab regions to Petra.
The former fishing village is now a popular tourist destination. Nevertheless Dahab still retains a bit of its former hippie flair. It's not nearly as crowded as Sharm el Sheik and not so sophisticated.
Its famous dive sites are directly accessible from the shore. Some dive sites like "Canyon" or "Blue Hole" are world famous. Even for windsurfing Dahab is very popular. The "lagoon" offers all year round constant winds and safe surfing.
Dahab is the perfect base for exploring the Sinai, due to its central location on the east coast of the peninsula, whether by four-wheel drive vehicle or camel or bus.