pre-islamic arabia:poetry,tribal rivalry and heroism 21in Central Arabia mainly in Yathrib (al-Medìnah) and Khyber.
Christianity also existed among some tribes such as the Banù-Taghlib,
though it was not influential. In many respects, however, Central
Arabia was ripe for the spiritual rejuvenation, which was to come
with the rise of Islam.
Trade and Finance in MakkahApart from the nomads in Central Arabia, trade prospered in the
South, the North and in Makkah, the cradle of Islam. The Makkahn
traders traveled south and north, in two journeys one in the sum-
mer and another in the winter as the Qur"àn is telling us in citing
the bounties bestowed by God on the Makkahn Qurayshites (Qur"àn
106:1–4) who had settled in the city and accumulated great wealth
and power. Financially the development of trade had created three
distinctive financial situations: the demand for, and supply of, finance,
the appearance of money changers and the necessity of insurance.
The need for, and provision of, finance was necessitated by the
expansion of the trade. The mode of finance took three different
forms depending upon the level of risk the financier, or the investor,
if a modern term is to be borrowed, was willing to bear. For those
willing to accept risk for a greater return, partnership was a suitable
form. For those not willing to accept the risk, loans were the alter-
native.
In a partnership, a group of people may agree to enter into a
financial arrangement to finance a trade trip, to the North or the
South, whereby some of those involved may be sleeping partners
while the others were managing partners. Restrictions may be placed
on to the authority of the managing partner(s) and to reduce risk
the type of goods traded and the terms of transactions should be
clearly defined (El-Ashker, 1987). The duration of the partnership
could be limited to the period of the trip, at the end of which the
partnership was to be dissolved, or extended, to cover a renewed
period with either the same partners or new ones. The managing
partners would join the caravan as independent participants, with
their goods and funds, enjoying the protection of, and facilities pro-
vided by, the caravan organizers who were mainly the Qurayshites.
A fee would probably have to be paid to the caravan organizers for
the facilities provided in general and the military protection in