Abu Dhabi, the largest emirate in the United Arab Emirates (UAE), lies in the oil-rich Persian Gulf region and is situated between Saudi Arabia and Oman, with neighboring emirate Dubai to the north. Abu Dhabi City is the capital city of the UAE and is the richest city in the world. Each of Abu Dhabi’s 420,000 citizens has an average net worth of $17 million. In addition to native-born citizens, another million or so expatriate workers and professionals live and work in the emirate.
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Abu Dhabi settlements were established as early as the 3rd millennium BC. Up until the discovery of oil, Abu Dhabi’s economy consisted of herding and farming in the inland areas and fishing and pearling on the coast. Abu Dhabi, along with several other emirates, came under the protection of the British in the nineteenth century. Oil was discovered in Abu Dhabi by British explorers in 1958, and in 1966 Sheikh Zayed bin Sultan Al Nahyan became the ruler of Abu Dhabi. He quickly saw the potential of the oil industry and was instrumental in leading Abu Dhabi into the modern age by way of oil revenues. After the United Kingdom announced they were withdrawing from the Persian Gulf in 1968, Sheikh Zayed helped lead the unification of the emirates. In 1971 Abu Dhabi, along with six other emirates, establish the United Arab Emirates (UAE) with Zayed as president. Abu Dhabi city became the capital city.
Abu Dhabi has been transformed from simple herding, agricultural and fishing communities into a modern state complete with thriving cities with towering skyscrapers, luxury hotels, and numerous cultural and recreational venues. Abu Dhabi did not initially see the same level of construction projects as its neighboring emirate Dubai. Dubai, with oil reserves estimated to run out in 20 years, made a concerted effort to diversify its’ economy. One strategic decision was to allow local immigrants to purchase land in 1997, and then foreigners in 2002 to purchase land in certain areas of the emirate. This led to a huge influx of foreign investment and helped to fuel the construction boom in Dubai. In Abu Dhabi, Zayed insisted that outsiders could not buy land and would only be issued to native-born Arabs. This made it very difficult to attract foreign investors and Abu Dhabi lagged behind Dubai. It was only after the death of Zayed in 2005 that this law was changed.
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Currently Abu Dhabi has ambitious construction plans either completed or in the works. The first private property development company of Abu Dhabi, Aldar Properties, was established in 2005. Its first project, Al Raha Gardens was very successful, selling out its $400,000 villas during the first 45 minutes of offering them for sale. Abu Dhabi has set its sights on being a major cultural center for the Middle East and has established the Cultural Foundation Centre that houses various art exhibitions from around the world. Other important development projects include Saadiyat Island, a $30 billion project which includes 3 marinas, 2 golf courses and 29 hotels, the Emirates Palace Hotel, and Danet Abu Dhabi, a project with 36 towers, 2 mosques, 2 shopping motels, and luxury hotel. Abu Dhabi is also an important international investor with $1 trillion dollars invested around the world. These investments include stakes in a telecom system in Nigeria and oil exploration in Libya.