“Welcome to Agrabah, city of mystery, of enchantment, and the finest merchandise this side of the River Jordan! On sale today! Come on down!”
―The Peddler
Agrabah is the central location of the popular 1992 Disney animated feature film, Aladdin. It is located near the Jordan River (as the narrator tells during the first minutes of the film) and is ruled by the Sultan.
Agrabah is known for its palace and its marketplace. It is also known for its population of monkeys and tigers; coincidentally, Aladdin's pet Abu is a monkey, and Jasmine's pet Rajah is a tiger.
After being asked, Disney revealed that Agrabah was actually a stand in for Baghdad, the city that was originally planned to be the movie's setting, but later on changed due to political issues that were occurring at the time.
The original Arabic folk tale of Aladdin was originally set in China, specifically an Islamic city in China (most likely in the Xinjiang region). In the Disney version, the setting was changed to the fictional city of Agrabah.
Places of Interest
The Sultan's Palace: The home of the Sultan and many other famous residents of Agrabah including Aladdin, Jasmine, Genie, Abu, Carpet, Iago, Rajah, and formerly Jafar.
Bazaar: The marketplace where Aladdin and his sidekick Abu were usually found when scrapping for food and ducking from guards before they became royal. Now it is a popular destination for Aladdin, Jasmine, and the others to browse and sightsee.
Desert: A large landscape located right outside Agrabah's gates. It is widely known as the Seven Deserts and holds many of the mysteries Agrabah is famous for along with various other neighboring kingdoms.
Cave of Wonders: A large and mysterious cave in the shape of a tiger found in the middle of the desert. The cave holds many treasures and magical items, most notable Genie's magic lamp and the Magic Carpet.
The Royal Academy: A small but roomy one room school where Sharma and Jasmine teach.
Trivia
The technical name for a country ruled by a Sultan is a Sultanate.
In a PDF included in the official Star Wars website's blog "The Star Wars, from Movie Script Page to Comic Book Page" detailing the transcript of the comic's 14th and 15th pages, J.W. Rinzler mentioned that he had considered basing the Palace of Lite in part on Agrabah Palace, although whether it was to be retained was up to George Lucas.