Background
Islam began in the Arabian
Peninsula in the early 7th century CE.
It quickly spread throughout the Middle East before
moving across North Africa, and into
Spain and Sicily. By the 13th century, Islam
had spread across India and Southeast
Asia. The reasons for the success of Islam, and the
expansion of its
empire, can be attributed to the strength
of the Arab armies, the use of a common
language, and fair treatment of conquered peoples
Arab armies were able to quickly conquer territory
through the use of advanced tactics and the employment
of horse and
.gif) camel
cavalry. Islamic rulers were very
tolerant of conquered peoples, and welcomed conversion
to the Islamic faith. All Muslims must learn Arabic,
so they can read the
Qur'an, the Islamic holy book. This
common language helped to unite many different
ethnic groups within the Islamic empire.
It also made possible the easy exchange of knowledge and
ideas, and the development of an impressive
trading economy.
Golden Age
Islamic civilization experienced a golden age
under the
Abbassid Dynasty, which ruled from the mid 8th
century until the mid 13th century. Under the
Abbasids, Islamic
culture became a blending of Arab,
Persian, Egyptian, and European
traditions. A major result of this
golden age was
the development of vast trading networks, new methods of
doing business, and the increased movement of peoples
and goods.
Manufacturing
Manufacturing in Islam was regulated by a guild
system. The various
guilds regulated quality,
prices, weights, and measurements of all manufactured
goods. This kept quality high and prices low which
stimulated trade. Islamic manufacturing centers
include Persia for carpets, Damascus for steel swords
and daggers, and Cordoba for leather goods. These
places are still renowned for their quality products
today.
Agriculture
Muslim farmers grew a variety of crops including
sugarcane, fruits, vegetables, cotton, and medicinal
herbs that were bought and sold across their empire and
beyond. These products not only were the backbone
of the Islamic economy, but they also led to a
reawakening of trade in Europe, and the stimulation of
their economies.
Economic Achievements
Under the Abbasids, a vast trading network was
created which helped to spread
religion, culture, and
technology. This network stretched across North Africa
and the Middle East, into Spain, West Africa, and
developed economic ties with India, and China through
the
Silk Road.
New business practices such as, partnerships, the
use of credit, and banks to exchange
currency, were developed to.gif) handle the increase in
trade. Partnerships allowed each partner to risk
less of their capital in a business venture.
Partners would share the expense of running a business
as well as the profits. Partnerships also allow
for greater business ventures as many people can pool
their resources toward works that would be impossible to
one alone.
The use of a credit system allowed people to purchase
goods without having to pay the entire cost at
.gif) one time.
This stimulated trade as many more products can be
exchanged in this way. People could afford to
purchase more when allowed to pay over time, and
merchants made greater profits through the charging of
interest on credit purchase. Interest is a small
fee paid to the merchant for allowing the use of credit.
The growth in the use of credit and the expansion of
trade led to the creation of institutions to handle the
new business. The newly formed banks offered
services such as currency exchanges, lines of credit,
and sometimes even insurance against loss or theft.
Modern banks today provide many of the same services
The establishment of such vast trading
networks made the Islamic Empire very wealthy, and
provided the basis for many business practices of today.
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