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Sheikh Othman derives its name from a religious shrine for Sheikh Othman Al-Zubairi Al-Wahki. The shrine is located in the original village of "Sheikh Al-Daweel". In 1880 the Government of Aden Colony completed buying a vast area of land from the Sultan of Lahj. The area then was properly planned for civil settlement new streets were paved and all supporting facilities such as schools, public colleges, mosques, markets, and cinemas were built.