In the early 18th century, Wad Madani was a small Turko-Egyptian outpost, and grew rapidly following the 1925 Gezira Scheme of irrigation to stimulate local economic development. Wad Madani is a commercial centre of the Gezira agricultural district and is mostly residential. Wad Madani has lively commercial activities with good souqs.
The beaches of Wad Madani are situated on the eastern river bank of the Blue Nile, which flows into Sudan from Ethiopia. The city's facilities are more modernized than most places in the Sudan (except the Khartoum area).
The University of al-Jazirah is also located in the area.
The popular Sudanese singers Abdel Aziz El Mubarak, Mohammed Al Ameen and Ibrahim Al Kashif were born in Wad Madani. The center of the town's areas are the souq, Al Daraga, Al Gism Al Awal, Wad Azrag and the Sudanese District (formerly known as the British District
