Abu Dhabi, the capital of the UAE, has witnessed a rapid surge in the construction of residential buildings, both in terms of quantity and architectural style. However, the facades of these contemporary units do not encompass the sustainable principles found in traditional homes as the city continues to grow. Given Abu Dhabi’s extreme climate, it is vital to establish a comfortable indoor environment in residential buildings while efficiently managing solar heat gain and reducing energy consumption for cooling. Failure to address these issues in facade design can lead to problems such as intense heat and glare, air leakage, and increased lighting demands, all of which can impact the performance of interior spaces in housing units. From traditional settlements to modern housing developments, the facade design of residential buildings in Abu Dhabi has evolved in terms of materials, window sizes and shapes, and shading elements, resulting in some improvements in sustainable performance. This study seeks to explore the fundamental principles of sustainable housing facade design in Abu Dhabi, tracing the progression from traditional settlements to modern residential buildings, specifically focusing on recent developments in the Al Raha Beach area. The research emphasizes that recent facade designs prioritize sustainability by integrating various design elements to address Abu Dhabi’s challenging climate conditions. Additionally, the study conducted a solar radiation analysis on the south facade of three residential buildings from the case study, using Ladybug and Grasshopper software to assess the environmental impact of the design concepts. The research concludes that there are still several key concepts that need to be developed to achieve highly sustainable performances in residential units, emphasizing the importance of sustainable facade design to ensure better thermal comfort in response to the local climate and building orientation.