As the fourth-largest oil-producing centre in the world, Abu Dhabi is the financial powerhouse of the United Arab Emirates (UAE), and its generosity fuels the relatively high quality of life in the smaller, poorer emirates. While Dubai is trying to forge a path as a holiday destination, Abu Dhabi is planning for the future by making massive investments across the world, figuring that by the time the black gold runs dry, they'll be able to receive 70 per cent of their current income just from share dividends. Abu Dhabi is also the seat of the country's political power - all federal-level decisions are taken in the city, and it's the home of the nation's President and National Council.

Although Abu Dhabi is the financial and political hub, it's entirely outshone by neighbouring Dubai when it comes to nightlife, restaurants, shopping and entertainment. Unable to dazzle visitors with the glitz of its sister city, the capital relies on good-value hotel accommodation, conference facilities and more tranquil breaks to snag its share of the tourist trade. Don't go expecting a wild time, but if you just want to unwind on the beach before heading out for dinner, you'll find a certain quiet charm to the place. Sights are extremely thin on the ground, limited to a couple of uninspiring old forts, a smelly dhow harbour, a woefully dismal 'Petroleum Exhibition' and the pretty but small Heritage Village (overlooking the Corniche, near the Breakwater), a faithful representation of a small nomadic camp.

Perhaps unsurprisingly for such a young city, by far the most impressive sight is the recently finished Emirates Palace Hotel (Corniche Road, +97126811888), a huge, no-expenses-spared leviathan constructed to compete with Dubai's seven-star Burj. Pop in for afternoon tea and you can admire the sheer opulence of the Arab-influenced design and gold-heavy interior. Abu Dhabi is also notable for its 18 large and well-maintained gardens, the pick of which are the Capital Gardens and Khalidia Children's Garden.

When you tire of the town centre, you can take a boat over to Futaisi Island (+97126661185, Dhs80; Dhs15 children), a pretty eco-tourist resort just off the coast, filled with wildlife (gazelles, flamingos and lots of eagles). It's an ideal day-trip spent biking, horse-riding and touring the lagoon, mangrove swamps and old fort. Just out of town in the direction of Dubai lies the beautiful Ghantoot Racing and Polo Club (Sheikh Zayed Road, near Al Jazira Hotel +97125629050) where on Wednesday nights during winter you can watch free world-class polo with the nation's elite.