City went behind to the Bhoys three times in the match but goals from Fernandinho, Raheem Sterling and Nolito meant a share of the spoils.
City now have four points after two games in Group C and Zabaleta is proud of the way the team fought to stay in the match.
He said: “To come back three times when we were behind shows the character of the team.
“We were a bit unlucky not to score at the end. We created a few clear chances and had control of the game in the second half.
“It’s true that we conceded in three key moments of the game, especially the third goal at the start of the second half but to come back was important.”
Celtic Park is famous for its atmosphere on major European nights and this was no different, with the capacity crowd fully behind the Scottish champions. Zabaleta says he understands why this may have spurred Celtic on.
He said: “We were saying before the game that this is a difficult place to come and get a result. They are a club with a big history and a different team when they play at home compared to when they play away.
“The atmosphere was incredible and it was a great game to watch for the fans.”
The result means City sit in second place in Group C behind Barcelona, who beat Borussia Monchengladbach 2-1 at Borussia Park this evening, but Zabaleta isn’t worried.
“We always play to win and of course we should have won. It would have been a great step to qualify for the next round but at this level no games are easy,” he said.
“For us it was not the result that we were looking for but when you can’t win it is important not to lose.”
City’s next Champions League tie is against Barcelona at the Camp Nou on 19th October.