The Financial System of the Umayyad State (41–132 AH / 660–750 CE)

An Analytical Study of Revenue and Expenditure

Abstract

The financial system of the Umayyad state is one of the most important pillars of Islamic civilization, contributing to its stability and prosperity. This research examines this system in terms of resources and expenditure, tracing its roots in the Prophetic and Rashidun eras, and analyzing its administrative developments that enabled the state to endure for nearly a century. The significance of this research lies in highlighting Umayyad economic institutions that became a firm foundation in Islamic civilization and a reference for many economic concepts. The research aimed to achieve five objectives: identifying the roots of the financial system and its development, analyzing multiple sources of income such as zakat, jizya, kharaj, ushur, sawafi, and khums of spoils, studying aspects of expenditure and stipends especially military expenses and urban projects, highlighting the administrative role of diwans and the functions of arifs and manakib, and presenting an integrated picture of fiscal policy linked to the political and military context. The research problem revolved around how Umayyad financial systems were formed and developed, the factors influencing their resources and expenditures, and the extent to which disparity in fiscal policies reflected the nature of Umayyad rule. The research concluded that the Umayyad financial system was an extension of Rashidun systems with substantial developments. Revenues varied between fixed and circumstantial, with kharaj prevailing as the backbone, followed by khums of spoils, then jizya, while zakat declined in most periods except during Umar ibn Abd al-Aziz's reign. Military expenditures occupied the foremost position, as registered army personnel reached huge figures and stipends transformed into functional salaries tied to political loyalty. The diwans formed an advanced bureaucratic apparatus but remained subordinate to the ruling authority and susceptible to corruption. Umar ibn Abd al-Aziz's reign stood out as an exceptional turning point with radical reforms that did not last. Regional disparity in taxation and stipends generated resentment contributing to revolts. Ultimately, the Umayyad financial system carried both factors of survival and downfall, as financial grievances and administrative deviations contributed to the state's fall in 132 AH, while its achievements remain a testament to the system's sophistication and resilience.