A friend with custom docked in this part of Asia (3,5)

I believe the answer is:

abu dhabi

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'this part of asia' is the definition.
('Abu Dhabi' is part of 'asia')

'a friend with custom docked' is the wordplay.
'friend with' becomes 'bud' (I can't explain this - if you can you should give a lot more credence to this answer).
'custom' becomes 'habit' (habit is a kind of custom).
'docked' means to remove the last letter (to dock can mean to remove the tail of an animal).
'habit' with its last letter removed is 'habi'.
'a'+'bud'+'habi'='ABU DHABI'

'in' is the link.

Can you help me to learn more?

(Other definitions for abu dhabi that I've seen before include "in Middle East" , "M East country" , "Arab state" , "'UAE capital (3,5)'" , "Asian capital" .)

I've seen this clue in The Telegraph.

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