The company's rival in the United Arab Emirates, Careem, also said it had suspended ride-sharing services in the UAE capital, in a post on its Twitter account.
"Uber decided to temporarily suspend its services due to unforeseen circumstances. This is (a) precautionary measure and we hope to resume operations as soon as possible," Uber said in a response to a question from AFP.
The company said its operations in nearby Dubai continued as normal.
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The National newspaper said the suspension came after the arrest of some 50 drivers.
The two companies are allowed to operate in the Emirati capital, through the use of licenced drivers from limousine firms in competition with the government-owned taxi company.
Careem and Uber are allowed to operate with limousine companies as long as they stick to the same prices, The National cited Mohamed al-Qamzi, the head of Abu Dhabi taxi regulator, TansAD, as saying.
"They are bringing customers to limousine companies, which we encourage, but they don't have the freedom to set prices where they are in competition with the taxis," he said.