Abu Dhabi is a federal capital city of United Arab Emirates. Also, this 2nd largest city of UAE is the main centre of government and business life in the UAE.

The early history of Abu Dhabi fits the nomadic, herding and fishing pattern typical of the broader region. It is said that some parts of Abu Dhabi were settled around 3rd millennium BC. The modern Abu Dhabi has its roots in tribal confederation in the late 18th century by the Bani Yas, who also assumed the control of Dubai.

Into the mid-20th century, the economy of Abu Dhabi was mainly dependable on camel herding, production of dates and vegetables at the inland oases of Al Ain and Liwa Oasis, and fishing and pearl diving off the coast of Abu Dhabi city. Most of the families were living in palm fronds and mud huts. In the first half of the 20th century, the export of cultured pearl industry was the main source of cash earnings.

In 1939, Sheikh Shakhbut Bin-Sultan Al Nahyan granted first Petroleum concession to Trucial Coast Development Oil Company (renamed the Abu Dhabi Petroleum Company i.e. ADPC, in 1962). The oil was first discovered in 1958 and the production - export activities were started from 1962. This oil money started to show its colour as some buildings erected and other developments began in the city. But Sheikh Shakhbut was uncertain about the oil royalties and preferred revenue saving instead of advancing it into the developments. His brother, Zayed bin Sultan Al Nahayan was having faith in the potential of oil wealth. So, The ruling Al Nahayan family decided to replace Sheikh Shakhbut. On August 6, 1966, Sheikh Zayed bin Sultan Al Nahayan became the new ruler with the assistance of the British and started to carry out his vision of developing the country with the help of oil wealth.

In 1968, UK announced that it would withdraw from the Gulf area by 1971. This announcement eventually resulted in independence for Bahrain and Qatar and the creation of a new federal nation, the United Arab Emirates. Sheikh Zayed played the key role in the formation of United Arab Emirates. On 2 December 1971, the UAE came into existence with Abu Dhabi as its capital. The flow of oil wealth continued and the area with mud-brick huts was replaced by modern high-rises, banks, boutiques and gardens.