The Arabian Fables all have their origin in the tales of Scheherazade in 1001 Nights.

After an emissary was sent to the Arabian Fable's Homeland, a group came to Fabletown to discuss an alliance. Things were not going well at first--newly elected Prince Charming was no diplomat, cultural clashes were happening over the treatment of women and slaves, and the scheming Yusuf was hatching his own plot--but an alliance was reached when King Cole stepped in to act as ambassador. Yusuf released an evil D'jinn, sending it to kill all of his enemies, however, Frau Totenkinder was able to warp his speech so that the D'jinn followed a different set of orders. After interrogating the other Arabian Fables to make sure that no one else had evil intents, they were released and sent back home. King Cole became the official liaison between what became known as Fabletown East and the main Fabletown. 

With the alliance going strong, the Arabian Fables lent their unique brand of magic to their western cousins by helping them to build the flying ship the Glory of Baghdad. Sinbad and Prince Charming were co-captains of the ship, further embodying the relationship between the two Fabletowns. The ship was ambushed by the Emperor's dragon troops but the two captains were able to accomplish their mission of destroying the magical gateways. Yet, it wasn't without a high cost.