Sly and the gang traveled to Arabia in the year 1001 AD and met the ancestor. Salim had given up on trying to save the three members of his gang, and had put himself into retirement. Sly convinced him to help his gang to save them and put a stop to the forgeries. He did, and soon the gang caught up to Miss Decibel. After a battle, Inspector Carmelita Fox was captured, and the gang chased Le Paradox through time, back to the future.
The Arabian city is a sandy location full of many dunes and Arabian buildings, which include palaces and shops. The colors are deep and rich, with golds, reds, yellows, and blues. There is a river flowing through the center of the city, and along one edge is a large body of water. Boats float in the water, and magic carpets fly through the air. The city is decorated with jewels, fountains and palm trees, as well as modern statues of elephants. Connecting the roofs of many buildings are tightropes and planks of wood.
- In real life, Arabia in 1001 A.D. was the center of the Abbasid Caliphate, the third Islamic empire, ruled by caliphs and extended from Northern Africa, to Persia and all the way to western India.
- Salim Al-Kupar, his gang, the Forty Thieves, and Ancient Arabia are all a reference to the folk tale, Ali Baba and the Forty Thieves.
- Some early gameplay images of Ancient Arabia was thought to be images for the Colonial Caribbean, where Henriette "One Eye" Cooper would reside.