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This is the Most Powerful and Richest Arab Country on Earth

Abu Dhabi: The Capital of UAE and Its Rise to Power

By Abira SahiPublished about a year ago 4 min read
This is the Most Powerful and Richest Arab Country on Earth
Photo by Andrew Stutesman on Unsplash

Abu Dhabi, the capital of the United Arab Emirates, stands as one of the wealthiest and most powerful cities in the world. When people think of the UAE, Dubai often comes to mind with its towering skyscrapers, luxurious hotels, and upscale resorts. However, while Dubai may be the UAE’s most famous city, Abu Dhabi is its political and economic powerhouse, known for its leadership, history, and vast oil reserves.

Two influential figures are instrumental in this story. The first is Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai, a widely recognized leader. But the man who wields more power is Sheikh Mohammed bin Zayed Al Nahyan, the Crown Prince and President of the UAE. A 2019 report from *The New York Times* described him as one of the most influential political leaders globally, playing a critical role in shaping the modern Middle East.

### Historical Origins and Early Struggles

Abu Dhabi's history doesn’t feature any major human civilization until the 18th century, but the surrounding region was home to small tribes for thousands of years. The Bani Yas tribe, a collection of small tribes including the Al Falasi and Al Nahyan families, settled along the Persian Gulf coastline in 1761, driven by the search for fresh water.

Initially, Abu Dhabi’s economy relied on pearl diving and fishing. Pearls were sent to the thriving markets of Iran and India, where they were polished and exported globally. However, this industry collapsed when Japan began producing high-quality artificial pearls, and the Great Depression further worsened economic conditions. By the early 20th century, the population of Abu Dhabi had dwindled to around 6,000, and poverty was widespread.

### The Turning Point: Oil Discovery

A major change came in 1938, when vast oil reserves were discovered in nearby Saudi Arabia, attracting attention from the Western world. Inspired by these developments, Abu Dhabi’s then-ruler, Sheikh Shakhbut bin Sultan Al Nahyan, granted exploration rights to Western oil companies. However, World War II temporarily halted oil exploration, and it wasn’t until 1958 that oil reserves were found in Abu Dhabi. Despite this discovery, Sheikh Shakhbut was cautious about spending the newfound wealth, which frustrated some within the ruling family. His younger brother, Sheikh Zayed bin Sultan Al Nahyan, had a vision to use the oil wealth to transform Abu Dhabi and improve the lives of its people.

In 1966, Sheikh Zayed assumed leadership. He believed that oil could drive prosperity for the whole region, and he began using the revenue to develop infrastructure, schools, hospitals, and essential services. Sheikh Zayed's vision extended beyond Abu Dhabi; he believed that the Gulf states could be stronger together. In December 1971, the British exited the region, and Sheikh Zayed led the unification of six states—Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, and Fujairah—to form the United Arab Emirates. A year later, Ras Al Khaimah joined, and the UAE was complete.

### Economic Growth and Strategic Investments

As the first President of the UAE, Sheikh Zayed laid the foundation for a modern state. His investments in infrastructure created a strong foundation for Abu Dhabi. Sheikh Zayed also encouraged Dubai’s ruler to develop Dubai’s infrastructure. This cooperation transformed Dubai into a global tourism and trade hub, while Abu Dhabi continued to develop its own economy.

Mohammed bin Zayed, Sheikh Zayed’s son and the current President of the UAE, was deeply influenced by his father’s approach to leadership. He played a significant role in establishing the UAE’s wealth fund, which has grown to over $1.3 trillion. The investment strategy ensured that Abu Dhabi would have steady income streams even if oil demand declined. As of today, the UAE’s wealth fund includes investments in real estate, stocks, hotels, factories, and more, providing financial stability to Abu Dhabi’s citizens.

### Military Strength and Global Influence

Mohammed bin Zayed's military background has also shaped Abu Dhabi’s strategic vision. With a focus on defense, he has transformed the UAE military into one of the best-equipped forces in the region, earning it the nickname “Little Sparta” in the West. The UAE has a well-trained army of 60,000 soldiers, with a budget of $20 billion, and it has been actively involved in military operations across the region.

Today, Abu Dhabi is recognized as one of the safest cities globally, thanks to its strong security forces and disciplined governance. This stability has helped the UAE become a major financial and commercial hub, attracting global businesses to establish their headquarters in Dubai or Abu Dhabi.

While Mohammed bin Zayed’s policies may sometimes appear authoritarian, his goal has been to maintain stability and prevent extremism. This approach has allowed the UAE to build strong diplomatic relations with countries like India, Indonesia, Ethiopia, China, and Russia.

### Legacy and Future of Abu Dhabi

From its humble beginnings as a small fishing and pearl-diving village, Abu Dhabi has grown into one of the wealthiest and most powerful cities in the world. Its journey reflects a commitment to progress, led by visionary leaders dedicated to their people’s welfare. Sheikh Mohammed bin Zayed continues this legacy, steering Abu Dhabi and the UAE with a strong sense of purpose and resilience.

The transformation of the UAE is a testament to the power of leadership and vision. The desert has indeed turned into a land of opportunity and prosperity, setting an example of what dedicated leadership can achieve. Whether future leaders will carry forward this commitment remains to be seen, but the UAE’s foundation is strong. For now, Abu Dhabi continues to shape its destiny as one of the world’s wealthiest and most influential cities.

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