~4 min read • Updated Mar 30, 2026
Economy in Islamic Countries (7-656 AH)
Civilization arises from two essential factors: land and human beings. Humans, through labor, order, and interest, convert natural resources into useful goods. Patient workers including farmers, shepherds, artisans, merchants, and investors formed the foundation of Islamic civilization.
Agriculture and Agricultural Products
Muslims raised animals such as camels, goats, cows, and horses and produced hundreds of types of grains, vegetables, and fruits. The orange tree was brought from India to Arabia and spread by Arabs to Syria, Egypt, and Spain. Sugarcane cultivation and the sugar refining industry were adopted from India. Arabs were the first to grow cotton in Europe.
Regular irrigation was supervised by the caliphs. Major canals from the Euphrates and Tigris were dug, and drainage of swamps was encouraged. In the Samanid era, the region between Bukhara and Samarkand was considered one of the four paradises of the world.
Mining, Industries, and Production
Gold, silver, iron, lead, mercury, and pearls from the Persian Gulf were extracted. Industry was mostly at the handicraft stage. Windmills were observed in Iran and the Near East. Iranian, Syrian, and Egyptian textiles were famous. The fine cotton fabric muslin, Damascus linen damask, and Damascene sword made of watered steel gained worldwide reputation. Glass and pottery of Baghdad, pottery of Rayy, olive oil and soap of Raqqa, and Iranian perfumes and carpets were also renowned.
Commerce and Transportation
The camel, known as the ship of the desert, was the main means of land transport. Large caravans traversed the Islamic lands. Major trade routes extended from Baghdad to Rayy, Nishapur, Merv, Bukhara, and Samarkand. Caravanserais and water reservoirs were built along the routes.
Political, religious, and linguistic unity removed customs barriers. Trade expanded from China to Spain and northern Europe. Islamic ships reached Canton in China. Words such as tariff, caravan, and market entered European languages through Muslims.
Currency, Wealth, and Slavery
Abd al-Malik ibn Marwan minted the Arabic gold dinar and silver dirham. The wealth of caliphs and merchants was enormous. Slavery was limited to prisoners of war, and Islam attempted to improve the conditions of slaves. The Zanj Rebellion led by Ali ibn Muhammad disrupted the economy of eastern Islam for fifteen years.
Faith and Beliefs in Islamic Countries
Islam is a simple and clear religion. Its foundation is the testimony La ilaha illallah wa Muhammad rasul Allah and belief in the Quran. The five pillars of Islam include prayer, fasting, zakat, hajj, and jihad.
Hadith and Prayer
Bukhari collected thousands of hadiths and compiled Sahih al-Bukhari. Prayer is performed after ablution, and the muezzin calls Muslims to prayer five times a day with the adhan. The mosque served as a social, educational, and judicial center.
Zakat, Ramadan Fasting, and Hajj
Zakat was 2.5 percent of movable property. Fasting in Ramadan strengthened willpower. Hajj united Muslims from different nations wearing simple clothes and using the Arabic language.
Society and Daily Life in Islamic Countries
Arabs formed the ruling class during the Umayyad era. Veiling and the harem system became widespread. Polygamy was permitted. Girls’ education was limited to the Quran and housekeeping. Cleanliness, hospitality, and good manners were prominent features. Public baths were numerous in Baghdad.
Government and Cities
Government evolved from an early republic to absolute monarchy. The caliphate was theocratic. Various divans such as the divan of taxation, postal service, and justice administered the country.
Major cities like Damascus with the Umayyad Mosque, Jerusalem with the Dome of the Rock, and Baghdad with magnificent palaces and bustling markets became centers of civilization. Baghdad in the tenth century was considered the largest city in the world.
Written & researched by Dr. Shahin Siami