Gabes is situated on the Gulf of Gabes, which is part of the Mediterranean Sea. Gabes is the administrative and economical centre of its region. The region has seen extensive industrialisation programs involving cement and brick factories and oil refinery. Still much of the economy rests on the produce from the 300,000 palm trees, along with a diversified agriculture between the palms, which includes olive trees and fruit trees.
Gabes also has an important income from fishing in the Gulf of Gabes.
The industrialisation has resulted in fairly serious pollution along the beach and in the Gulf. It appears probable that Gabes was originally founded as a Phoenician harbour. Conquered and destroyed by the advancing Arabs. The companion of the prophet Muhammad , Sidi Boulbaba, settles in Gabes, bringing new life to the town. With the arrival of the French protectorate, Gabes becomes the centre of the southern region.