Abu Dhabi, city and capital of Abū Ẓaby emirate, one of the United Arab Emirates, and the national capital of that federation. The city occupies most of a small triangular island of the same name, just off the Persian Gulf coast and connected to the mainland by a short bridge. Abu Dhabi was formerly an undeveloped town of only local importance, but the emirate’s oil revenues enabled it to evolve into a modern city with a fully developed infrastructure.

The discovery (1958) and commercial production (since 1962) of the rich oil fields of Abū Ẓaby emirate revolutionized the political and economic position of the town. Great Britain, as the protecting power of the then Trucial States, established a separate Political Agency at Abu Dhabi in 1961. As capital of the chief oil-producing state in the region, Abu Dhabi town had large sums available for urban development.

When Britain finally left the Persian Gulf and when the United Arab Emirates achieved political independence (December 1971), a compromise decision made Abu Dhabi the provisional national capital.

It was made the permanent capital of the United Arab Emirates in the early 1990s. Since that time, a number of projects have been initiated to expand the city as a centre for tourism and commerce. Development plans in Abu Dhabi rapidly led to the construction of a variety of landmark hotels, the establishment of an international airline, Etihad (Al-Ittiḥād) Airways, to serve the capital.