Early Islam and the birth of capitalism

Early Islam and the birth of capitalism propose a remarkably original thesis. That capitalism appeared for the first time in the Arabian Peninsula, not in the late medieval Italian city-states as is commonly assumed. Early Islam made a fundamental but largely unrecognized contribution to the history of economic thought: it is the only religion founded by a businessman. Muhammad, who descends from an elite lineage of religious, civil, and commercial leaders, was a successful businessman before establishing Islam. As such, the new religion had much to say about trade, consumer protection, work ethics, and ownership. With Islam spreading rapidly throughout the region, the economic teachings of early Islam spread as well, eventually reaching Europe. Early Islam and the birth of capitalism show how Islamic institutions and commercial practices were adopted and adapted in Venice and Genoa. These financial innovations include the invention of the joint-stock company, business management techniques, commercial accounting, and monetary reform. Other Islamic institutions were incorporated into Europe: charitable associations, waqf, inspired trust funds, and higher education institutions, schools, which served as models for the oldest colleges at Oxford and Cambridge. As such, it can be rightfully said that these fundamental aspects of capitalist thought have Islamic precedents.