Somewhere on the highway, heading southwest through a desert sandstorm, we crossed from the emirate of Dubai into the emirate of Abu Dhabi. A short time later, somewhere on the outskirts of the city of Abu Dhabi, we crossed from the Arabian mainland onto an island.

Neither transition was obvious.

Yet when we arrived at our hotel, it was clear we had reached a place significantly different from glitzy Dubai — more established, more staid. We could also appreciate, from the top floor, something of the city’s disrupted geography. It sits amid an archipelago of 200 flat, sandy islands laced with narrow channels and mangroves.

Abu Dhabi’s fortunes have turnedon two valuable discoveries. The first in the 18th century, when Bedouin tribesmen dug down on one of the islands and struck the most precious of all desert commodities: fresh water. Then, in 1958, while the territory was administered by Britain, a vast oilfield was found.

The earliest settlers had primarily looked to the sea for a living — fishing, pearl-diving and trading by dhow. In a small boatyard, we found a gang of shipwrights building a traditional wooden dhow while, immediately behind them, a modern skyscraper was taking shape. The boatyard was an anachronism — one of the last fragments of the old way of life.

Modern Abu Dhabi has been shaped by petrodollars. This emirate, which is the largest and wealthiest of the seven United Arab Emirates, boasts more than 9 percent of the world’s oil reserves. In Dubai, where the oil and gas will run out within a decade, there has been a concerted effort to diversify the economy, with heavy investment in real estate and tourism. For more than a decade from the early 1990s, Abu Dhabi resisted the breakneck development of its near neighbor, and there was an effective moratorium on construction. That changed with the death of the country’s founding president, Sheikh Zayed bin Sultan Al Nahyan, in 2004. His son succeeded him, and has opened the floodgates for ambitious new mega-projects.

More than $100 billion worth of real estate plans are currently under way, fueled by pent-up demand and the recent relaxation of restrictions on foreign ownership (expatriates can now purchase 99-year leases on Abu Dhabi property). When one proposed plan for 338 beachfront villas was unveiled recently, they sold out within 45 minutes.

Added to the liberalization of the property market, Abu Dhabi also is seeking to develop — virtually from scratch — a tourism industry. More than 17,000 new hotel rooms are planned for the next 10 years, and a host of attractions is under development.

The most significant is Saadiyat Island, adjacent to downtown Abu Dhabi, where $27 billion is being invested in luxury resorts, golf courses, condominiums, marinas, a theater, and museums, including the 300,000-square-foot Guggenheim Museum of Modern Art, designed by Frank Gehry, scheduled to open in 2011. An airline, Etihad Airways, was launched in 2003, and is projected to carry 3 million passengers this year. Meanwhile, Abu Dhabi International Airport is undergoing a $6.8 billion expansion.

On a balmy evening, we took a stroll along the waterfront Corniche. Stars twinkled overhead, the city lights twinkled around us. From dozens of mosques, loud speakers called the faithful to prayer.

Modern Abu Dhabi is cosmopolitan and also proudly Arabian. You will find state-of-the-art shopping malls and traditional markets. Dhows being built next to skyscrapers. Muezzins calling from mosques while pop music plays on car stereos. There is no obvious transition between East and West. In Abu Dhabi, the two worlds are intertwined.

LODGING

EMIRATES PALACE ABU DHABI

The existing hotel star rating system was not sufficient to classify this jaw-dropping property when it opened in 2005 — a new seven-star category was invented for it. Calling it a palace rather than a hotel is no idle boast. It provides regal heights of luxury.The statistics are staggering: The Arabian-influenced building has 114 domes, 1,002 chandeliers, 128 kitchens and pantries, 40 meeting rooms, and acres of decorative gold leaf. The high-end suites are literally big enough to get lost in. Owned by the government of Abu Dhabi, the hotel is run by the Kempinski hotel group. $$$$
EMIRATES PALACE
Abu Dhabi Corniche
tel 971 2 6909000, fax 971 2 6909999
www.emiratespalace.com

LE ROYAL MERIDIEN ABU DHABI

There are two Meridien hotels in Abu Dhabi (the other is Le Meridien Abu Dhabi — make sure you know which one you have booked!). Le Royal, facing the Corniche in the heart of downtown, is my preference. The 187 newly refurbished rooms exude contemporary sophistication. Service is outstanding. There are nine restaurants and two swimming pools (one indoor, the other outdoor). Ask for a sea view when booking — the views on the city side are much less impressive. $$$$
LE ROYAL MERIDIEN ABU DHABI
Sheikh Kalifa Street
tel 971 2 674 2020, fax 971 2 674 2552
www.starwoodhotels.com

AL DIAR REGENCY HOTEL

This centrally located hotel offers excellent value for money — at least by Abu Dhabi standards.The 200 guestrooms are simple, clean and reasonably spacious, and come equipped with a kitchenette (but not Internet access, for which you need to use the business center on the ground floor). Some of the rooms offer sea views. There are dozens of much swankier places to stay, but if you’re on a budget, this three-star property is worth considering. $
AL DIAR REGENCY HOTEL
Corner of Al-Meena and As-Salam streets
tel 971 2 6765000, fax 971 2 6777446
www.aldiarhotels.com

DINING

AL ATLAL

For authentic Middle Eastern cuisine (in this case, predominantly Lebanese), the Al Atlal is one of the best venues in town.The restaurant is located on the second floor of the Al Diar Sands Hotel, and tends to be crowded from late evening until closing time in the early hours (entertainment, including belly dancing, starts at around 11 p.m.). The food is great, and is good value for money.The atmosphere is very friendly, if a little raucous toward the end of the night. $$
AL ATLAL
Al Diar Sands Hotel
tel 971 2 633 5335, fax 971 2 633 5766
www.aldiarhotels.com/sands-hotel

VASCO’S

With the option to eat in air-conditioned comfort indoors, or outside on the waterfront deck, Vasco’s is one of the most popular lunch venues in town.The cuisine is international, with a slight Portuguese bias (it is, after all, named in honor of the explorer Vasco Da Gama). The restaurant is situated in the Hiltonia Beach Club, which is connected to the Hilton Abu Dhabi by an underpass. $$$
VASCO’S
Hiltonia Beach Club
Corniche Road
tel 971 2 681 1900, fax 971 2 681 1696
www.hilton.com

RODEO GRILL

No apology necessary: Exotic cuisine is all very well, but sometimes what you really want is a large hunk of steak and a generous portion of fries. You’ll get exactly that here, with the bonus of a comfortable setting (it feels like a gentlemen’s club) and attentive service. As for the meat, well, in this joint a steak isn’t just a steak — the beef is imported from all corners of the globe. Star billing goes to the legendary wagyu steak from Japan — it’ll set you back $80, but is worth every cent. $$-$$$$
RODEO GRILL
Beach Rotana Hotel & Towers
tel 971 2 644 3000, fax 971 2 644 2111
www.rotana.com

DIVERSIONS

If you visit during the ferociously hot summer months (June-September), it’s unlikely that you’ll want to do anything between business meetings other than retreat to the airconditioned sanctuary of your hotel. But in the cooler months, there is plenty to do here. A worthwhile first stop is the UAE Heritage Village (www.emirates-heritageclub.com), situated on the breakwater facing downtown. Here you’ll find replicas of traditional architecture, handicraft workshops, and a museum. While immersing yourself in the city’s humble origins, you need only look across the water for a panorama of present-day Abu Dhabi. The contrast between old and new is even more dramatic at Qasr Al Husn, the White Fort, which was built in 1793 and now sits bang in the middle of downtown. Nearby, the Cultural Foundation (www.cultural.org.ae) is an impressive complex housing the national archives, the national library, and the Institution of Culture and Art. Exhibitions, film screenings and international recitals are held regularly here — ask your concierge for the latest information about program offerings. Weather permitting, be sure to take a long walk on the beautiful Corniche — it’s particularly memorable at sundown, when many local families are out for a stroll. About 90 miles east of Abu Dhabi, the emirate’s second city, Al Ain, makes for a fascinating day-trip. Situated on the Buraimi Oasis on the border with Oman, the city has been extensively landscaped, and is known as “the Garden City.” If you’re looking to buy a camel, Al-Ain’s camel market is one of the best places in U.A.E. to make your purchase.

Worth Noting

When it comes to accommodation, what it lacks in quantity Abu Dhabi makes up for in quality. There is currently a severe shortage of hotel rooms in the city, and it is advisable to book well in advance. Prices are generally quite high, but so is the standard of luxury.

Around 80 percent of Abu Dhabi’s inhabitants are foreign nationals, and this diverse population is served by a wide range of restaurants. Few restaurants outside the major hotels are licensed to sell alcohol, and most refrain from offering pork, which is taboo for Muslims.

INFO TO GO

Abu Dhabi International Airport (AUH) lies 20 miles east of downtown. Fixed-rate taxi transfers to the city center cost approximately $20. There is also 24-hour bus service that runs every half-hour between the airport and the city. Fare is about $1.35. If you’re coming from Dubai, the journey takes around two hours by car, depending on the traffic. If you’re a confident driver, a rental car is a reasonable option.