It's suggested that this town marks the location of the Crossing of the Red Sea in Biblical times. Nuweiba is short for Nuwayba'al Muzayyinah in Arabic which means waters of Moses open.

Historically, the area was inhabited by two different Bedouin tribes: the Tarabin to the north, and the Maizena, some 8 km (5 mi) to the south. Since the Six Day War when Israel captured the area, Nuweiba Town sprung up just 1.5 km (1 mi) south of Tarabeen, under the Israeli name, Neviot. After the departure of the Israelis, the town expanded and Nuweiba Port, some 7 km (4 mi) to the south, was established and developed, with several car ferries now running every day to Aqaba in Jordan by the Arab Bridge Maritime company, and with a small town growing up around itself.

Between the town and the port are a strip of modern hotels, such as the Swisscare Nuweiba Resort Hotel or the Hilton Nuweiba Coral Resort, catering to beach holiday makers and divers. One km from Nuweiba, Tarabin village is well known for its Bedouin-style camps where one can rent cheap huts