This episode of “The Story of Money” features libertarian economist Benedikt Koehler, who explores the life of the Prophet Muhammad  ﷺ not only as a religious leader but as a successful, free market oriented businessman.

Before his prophetic calling, Muhammad  ﷺ engaged in Meccan caravan trading, utilizing innovative systems like Elaf (a model of cooperative trade agreements that built trust and prosperity across the desert)

Koehler posits that early Islamic commercial practices, particularly equity based risk sharing and the prohibition of interest (riba), were foundational catalysts for later capitalist development. He points to the commercial activities of the Prophet Muhammad’s ﷺ wife, Khadijah (RA), a prominent merchant and investor, as an early example of such practices.

Upon moving to Medina, The Prophet  ﷺ further established a tax free market that upset the jews and implemented price deregulation, even refusing to cap prices during a famine, while simultaneously championing social responsibility through Zakat.

The discussion suggests that these commercial models, including concepts of trusts and partnership ventures (similar to the Venetian commenda), likely influenced medieval European capitalism through Mediterranean trade networks.

The Islamic commercial golden age, which ultimately declined after 1500 due to new maritime routes discovered by Vasco da Gama and Christopher Columbus remains a significant, often overlooked chapter in the history of finance.

youtu.be/NkRHPEueW7Q?is…