The influences of this culture extended into the interiors and up to the present coast of Oman. The culture was more like a nomadic herding and fishing village. During the 16^th and early 17^th centuries, Portugal made the territories of the UAE as a base to fight a rear guard action against Persia. From that time till the mid-18^th century, Oman played an integral role in the history of the maritime states.

In the mid-18^th century, the rise of British naval power in the Gulf coincided with the rise of two important tribal confederations along the coast of the lower Gulf. These 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 modern city of Abu Dhabi originated in the late 18^th century from the Bani Yas tribal confederation. The Bani Yas tribe came to Abu Dhabi from the region of Liwa Oasis on the corner of the Empty Quarter Desert that in 1793. 

During the late 18^th and 19^th centuries, the division of the area between the Nahyan and the Qawasim, and whose clashes with British and Indian shipping led to British naval expeditions against what came to be known as the Pirate Coast. The treaties concluded in 1820 and 1835 established a formal relationship between the states of the southern Gulf and Britain that lasted till 1971. In 1853, the sheikhs agreed to a "perpetual maritime truce" to be enforced by the British navy. Under a treaty signed in 1892, the United Kingdom promised to protect the Trucial Coast from all aggression by sea and to lend its good offices in case of land attack.

In the 19^th century, the tribe bifurcated into two major clans when Dubai and Abu Dhabi branched off to become two separate cities. Till the mid of the 20^th century, the economy of Abu Dhabi was based mainly on camel herding, fishing and pearl diving. The production of dates and vegetables in the oases of Al Ain and Liwa also contributed to the economy. the houses in the city were constructed mainly of palm frond while the wealthier families lived in the mud huts. With the growth of the cultured pearl industry in the beginning of the 20^th century, the sustenance became harsher for the people. Since pearls were the largest export and main source of cash earnings for Abu Dhabi, the fall in the pearl market lead to abject poverty in the region.

The oil was first discovered in 1952 in Abu Dhabi, which changed the entire history of the region. Onshore petroleum was found in 1960 while the commercial exploitation of petroleum began in 1962. This resulted in increase in revenue of the state. However, Sheikh Shakhbut bin Sultan an-Nahyan, the Ruler of Abu Dhabi since 1928, failed to visualize the growth and development related with oil and to use the income from petroleum royalties to develop the city. He had a cautious approach and preferred to save the revenue rather than investing it in development.

Zayed bin Sultan Al Nahayan, brother of the king, saw that oil wealth had the potential to transform Abu Dhabi from a small village to a world-class metropolis. The ruling Al Nahayan family decided that Sheikh Zayed should replace his brother as ruler and carry out his vision of developing the country. On August 6, 1966, with the support of the British, Sheikh Zayed became the new ruler.

In 1968, the United Kingdom decided to withdraw from the Gulf region by 1971. Sheikh Zayed became the main driving force behind the formation of the United Arab Emirates. After the Emirates gained independence in 1971, oil wealth continued to flow to the area and traditional mud-brick huts were soon replaced with high-rise buildings, shopping malls and luxury hotels.