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 independence for Bahrain and Qatar and the creation of a new federal nation: the United Arab Emirates. The UAE, with Abu Dhabi as its capital, came into existence on 2 December 1971. When oil revenue started pouring in, banks and boutiques rapidly replaced the reed and mud-brick huts.

In recent years, the settlement has spread to occupy virtually all of Abu Dhabi island. It's been remodelled in less than 40 years to become the classic Arabian petrodollar city, a wealthy metropolis filled with gardens and tall mirror-glassed buildings.