In the 3rd millennium BC a culture known as Umm an-Nar (after the island where
it was discovered) arose near modern Abu Dhabi. Umm an-Nar's influence extended
well into the interior and down the coast of what is now Oman. Later regional
influences included the Hellenic civilisations, the Kingdom of Hormuz and the
Portuguese.
The rise of British naval power in the Gulf in the mid-18th century coincided
with the rise of two important tribal confederations along the coast of the
lower Gulf. There were the Qawasim, whose descendants now rule Sharjah and Ras
al-Khaimah, and the Bani Yas, whose descendants are now the ruling families of
modern Abu Dhabi and Dubai.
The Bani Yas were originally based in Liwa, an oasis on the edge of the Empty
Quarter desert, but moved to Abu Dhabi in 1793. They engaged in the traditional
Bedouin activities of camel herding, small-scale agriculture, tribal raiding
and extracting protection money from caravans passing through their territory.
The Bani Yas divided into two main branches in the early 19th century when
Dubai split from Abu Dhabi.
After the collapse of the world pearl market in the early 20th century, the
entire coast was plunged into abject poverty. In 1939, Sheikh Shakhbut, the
ruler of Abu Dhabi, granted the first of several oil concessions on his
territory. It was not until 1958, however, that oil was found in the emirate.
With a population at the time of only 15,000, Abu Dhabi was on its way to
becoming very rich.
Britain's 1968 announcement that it would leave the Gulf in 1971 came as a shock
to most of the ruling sheikhs. Negotiations eventually resulted in the
formation of a new federation: the UAE, as well as independence for Bahrain and
Qatar. The new country, with Abu Dhabi as its capital, came into existence on 2
December 1971.
When oil revenue started pouring in, the reed and mud-brick huts were rapidly
replaced by banks and boutiques, and the settlement has now spread to occupy
virtually all of Abu Dhabi island.