The Financial Times podcast "The Story of Money", hosted by Gillian Tett and Robin Wigglesworth, featured an interview with author Benedikt Koehler who presented a provocative view of the Prophet Mohammed as a prophet, trader, and capitalist. Koehler contends that Mohammed, beyond founding a major religion, was an international trader who created a commodities market and became wealthy. He highlights that Mohammed did not establish a government office or palace, but rather a mosque and a market where he declared there would be no tax, embodying a supply-side economic approach.
Koehler further explains that this tax-free market in Medina attracted many people, leading to commercial success and the spread of Islam. While some expansion occurred through warfare and conflict, Mohammed also gained significant wealth from raiding parties and "rents" (which Koehler likens to taxes) from incorporated areas. According to Islamic scholar Leone Caetani, who analyzed tax records, Mohammed was the highest-income Arab of his time.
The hosts and Koehler also discuss the implications of Islamic finance, particularly its emphasis on equity financing and risk-sharing over debt. Tett suggests that this model holds merit today given the global system's high levels of debt. Wigglesworth agrees, noting the compelling nature of Islamic finance's foundation of true risk-sharing and equity, suggesting that Western finance could benefit from incorporating some of these principles.
