Abu Dhabi is the capital and second most populous city in the United Arab Emirates (UAE), after Dubai.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. Approximately 860,000 people lived in Abu Dhabi as of 2007. 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.