Abu Dhabi (Arabic: أبو ظبي Abū ẓabī, literally Father of gazelle) is the capital and the second largest city in the United Arab Emirates, It is also the seat of government of the emirate of Abu Dhabi, which is ruled by Khalifa bin Zayed Al Nahyan – the current ruling Emir of the UAE. Abu Dhabi lies on a T-shaped island jutting into the Persian Gulf from the central western coast. The city proper, making up an area of 67,340 km2 (26,000 sq mi), has an estimated population of 860,000 in 2007.
Abu Dhabi is the houses important offices of the federal government, including the Federal National Council. Abu Dhabi has grown to be a cosmopolitan metropolis. Its rapid development and urbanisation, coupled with the relatively high average income of its population, has transformed Abu Dhabi. Today the city is the country's center of political, industrial activities, and a major cultural, and commercial centre due to its position as the capital. Abu Dhabi alone generates 55% of the GDP of the United Arab Emirates. Abu Dhabi is home to important financial institutions such as the, the Abu Dhabi Securities Exchange, the Central Bank of the United Arab Emirates and the corporate headquarters of many companies and numerous multinational corporations. One of the world's largest producers of oil, Abu Dhabi has actively attempted to diversify its economy in recent years through investments in financial services and tourism. Abu Dhabi is the third most expensive city in the region, and 26th most expensive city in the world.
The etymology of "Abu Dhabi" is uncertain but many possibilities exist. The area had a lot of Dhibaa and was nicknamed after that. Another story reveals that its eponym, a man who used to chase "Dhabi" was named the "father" of the animal and the name caught on. Abu Dhabi was previously called Milh or salt, "probably because of the salty water. Even now, this is the name of an island of the coast of Abu Dhabi.