Economy

As the capital of one of the world's greatest empires at the time, Baghdad during the Abbasid Empire quickly became the economic capital of the world. The Caliphs raised revenue mainly through taxes and military raids (especially into Byzantine territories). However, it was trade that played the most important role in the prosperity of the empire and its residents. The markets (suqs) of Baghdad sold numerous goods from lands as far as Russia, Africa, China, and Europe. Baghdad was built so that every occupation had its own market (suq) or street in the city, enabling buyers and sellers to interact efficiently. Baghdad was the first place west of China to produce and sell large quantities of paper; Baghdad was also the cradle of modern day financial institutions and services such as banks, checks, and currency exchange markets.



Baghdad's economy relied on taxes, and wealth generated by trade and manufacturing. The empire was rich in gold, silver, copper, and iron and used them in trade. Farmers grew dates, rice, and other grains. In addition, the Abbasids introduced new breeds of livestock. They also spread cotton. Traders from Scandinavia to Africa came to Baghdad for the products of its industries too. Leather goods, textiles, paper, metalwork, and perfumes were sold in the city. The Abbasids developed something very similar to the banking system. They did not have bank buildings but business people invested in long distance trade and goods were bought on credit. They also had a postal system. Muslim rule unified the eastern world. They introduced a uniform coinage system that made commerce easier. The Abbasids treated non-Muslims well. In their time, there were 11000 Christian churches, and hundreds of synagogues and fire temples.

Stephen George