The rise of merchant capital in Mecca conditioned the development of Meccan social, economic, religious, and political structure. Mahmood Ibrahim traces the roots of capitalism from the emergence of merchants as the main force in Mecca through the first civil war in Islam (656-661). Through a rereading of original Arabic sources and drawing from modern scholarship on the subject, Ibrahim offers a new interpretation of the rise of Islam.

He argues that Islam contributed certain institutional beliefs and practices that unblocked obstacles and helped merchants gain political and...