Though the game centers on a series of fictional events, the overall concept of the storyline is based upon real life aspects of medieval and renaissance history such as the Crusades, advancements in gothic architecture, construction of cathedrals, and hanseatic trade involving the rise of patrician merchants and early forms of capitalism.

One of the main focuses of the game in the "city building setting" sense centers on the construction of monuments, namely a Gothic cathedral and an Arabic mosque.

The process of the construction of the cathedral resembles very closely the castle/palace (and Asian Dragon Temple) feature that was displayed in 1404's predecessor, Anno 1701.

Occidental populations can not grow past a certain level of success without Spice, and later Quartz, that can only be generated in Oriental lands.

This is simplified by an automatic trading process that allows an island to make resources available to visiting merchant ships.

In Anno 1404, these zones are inspired by, though not intended to be historically accurate to, northwestern Renaissance Europe and the medieval Near East, referred to as the Occident and the Orient respectively.

These conditions include the acquisition of goods as mentioned above, as well as the construction of specific buildings, such as a debtors' prison, bath house or a cathedral.

In Anno 1701, every residential structure could be advanced to the uppermost class, so a city could be entirely made up of Aristocrats by the end of a game.

Some of the new goods include spices, bread, meat, candlesticks, leather jerkins, and brocade robes for the Occident and dates, milk, carpets, pearl necklaces, and marzipan for the Orient.

During their work, Northburgh becomes suspicious about the Emperor's illness, and slowly begins to suspect there is a plot to overthrow him.

With the crusade completed, Lucius leaves it under the command of Marie d'Artois, who joyously brings most of the forces assembled to the Orient.

Making contact with the Grand Vizier of the Sultan, Al Zahir, the group discover that the children were abducted by Forcas into order to ensure the crusade cannot be stopped.

Concerned about the crusade, Al Zahir works with the player to find evidence of Forcas' betrayal in order to convince Marie to end her involvement.

Angered at discovering his plot has been unmasked, Lucius pursues after the player and Marie, as they flee the area.

Although they initially attempt to fight against him, Marie ultimately is forced to receive aid from Al Zahir, whereupon he brings them to the island where the Emperor had been since falling ill. After Marie leaves to defend her homeland from Lucius, the player works with Al Zahir to cure the Emperor, along the way freeing Northburgh after learning he was imprisoned nearby.

The British magazine CVG gave the game a 6.1, saying, "The Anno series has been delivering solid if unspectacular city-building and strategy for a few years now.

The expansion includes 15 new scenarios, an espionage system, volcanic islands and an added third non-player power known as the Venetian dignitary Giacomo Garibaldi.