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 a magic carpet flying through the air in circles around a certain part of the city which either Sly or Salim can ride upon. 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.
The name of the hideout is Sneak Snake Hideout. The hideout is located on the southern half of the city, stationed right by the coast.
Miss Decibel's library
Miss Decibel owned a large library filled with thousands of large books. Bentley and Salim broke into this building to plant a bug on her desk. Diablo scorpions are also found inside here.
Honest Hassan's Carpets
Honest Hassan's Carpets was one of the places Salim had to break into in order to make his way to the tower, where The Panther was being held. Salim stated that Honest Hassan was not as his name suggests, and almost revealed that the two used to run a flying carpet scam together, before Bentley interrupted him.
The Lamp Shop was a very important location the gang investigated. First, Sly Cooper searched this shop for clues to Salim's whereabouts. There was also a large green door that led to an underground docking station for Le Paradox's blimp.
Miss Decibel's palace
This palace served as Miss Decibel's main base of operations during her stay in the time period, on behalf of her boss and lover, Cyrille Le Paradox. Miss Decibel used the palace to lure Salim al-Kupar and his three crime partners, the Lion, the Panther and the Tiger, to steal from her, which led to the latter three being caught.
The palace was separated in four parts, connected by massive bridges with statue heads on them. The palace's main building was where Miss Decibel held the Panther. The central tower of the building was formed like a camel's head. One of the bridges connected to the main building headed to the palace's spa, "the Lazy Trunk Spa." Here Miss Decibel could relax to some music and sleep when she did not work. Another bridge connected to the main building, headed to a section of the palace, consisting of many towers, as well as the massive library building, where Miss Decibel had installed her office.
- In real life, Arabia in 1001 AD, 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.
- The year the Arabian city takes place in, 1001 AD, is a reference to One Thousand and One Nights, also known as Arabian Nights, the collection of Middle Eastern folk tales that often includes 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.