Egypt was firmly ensconced by the early 1980s in the ranks of the Third World's more dependent, financially troubled economies. The country's total foreign debt, under $3 billion in 1973, had grown to 16 billion by 1979. In 1982–83, the external debt was estimated at $20 billion, with the servicing of medium and long-term obligations absorbing more than one-third of export earnings. The terms of trade were also moving against Egypt as its major exports lost value. A trade deficit, registered largely with EEC countries and the United States, stood at the equivalent of $4.7 billion in 1982–83.

Since the late 1940s, and especially since the mid-1960s, a wealth of pamphlets, articles, and books have appeared that constitute the corpus of what is now known as “Islamic economics.” This literature, whose exponents call themselves “Islamic economists,” purports to provide the blueprint of an economic system consonant with the original sources of Islam. The central feature of the proposed system is that individuals are guided in their economic decisions by a set of behavior norms, ostensibly derived from the Qur'an and the Sunna. Two other features stand out: zakāt, a tax considered the basis of Islamic fiscal policy, and the prohibition of interest, viewed as the centerpiece of Islamic monetary policy. Virtually all Islamic economists consider this trio—the norms, zakāt, and zero interest—the pillars of the Islamic system.’

On the night of May 26, 1762, several residents of the Syrian city of Aleppo entered a house in their neighborhood uninvited. The owners were not in, but several unveiled women sitting in male company were there to greet them. If the scene proved less compromising than the intruders expected, it did confirm their suspicion that the house was a meeting place for illicit relations. The following day they turned in the owners, a man and his mother, to the court and secured the qadi's consent to have them expelled from the neighborhood.

This article attempts to delineate the set of circumstances under which religion acts as a significant conducive factor in the development of Arab political communities, and those circumstances under which religion presents an important obstacle to the emergence of a political community. The focus is restricted to the Arab world so as to permit a more precise analysis than would be possible were one to attempt to generalize across more diverse cultures, but some of its main threads may apply equally well to other peoples and other religions. For the reasons discussed below, religion seems to be a particularly powerful source of individual political identities, and of feelings of membership in political communities.

Since the publication of Edward Said's Orientalism in 1978, every Western student of the Near East, regardless of his or her position in the ensuing debate, has been forced to examine afresh the assumptions underlying even the most respected historical studies. As far as the first century of Islam is concerned, a significant contradiction emerges from such reexamination. Although the reliance of the Muslim conquerors on indigenous administrative classes, their continuation for some time of pre-Islamic coin tupes, and their acceptance of late antique material culture in general are commonly recognized, the conclusion ususally drawn from these facts is rather a curious one: that the Arabs, entirely lacking in experience of government and distinctive material culture, were forced to adopt the essentially alien practices taht prevalied in the conquered lands.