This chapter begins by examining Muslims’ military, commercial, and intellectual achievements between the seventh and eleventh centuries. At that time, most of Islamic scholars (ulema) were funded by commerce, while only a few of them served the state. The merchants flourished as an influential class. The chapter goes on to analyze the beginning of the intellectual and economic stagnation in Muslim lands in the eleventh century. It explains how, gradually, the ulema became a state-servant class and the military state came to dominate the economy. The alliance between the ulema and the military state diminished the influence of philosophers and merchants. This changing distribution of authority led to the long-term stagnation, if not the decline, of Muslim intellectual and economic life. This gradual process began in the eleventh century and continued for centuries, as subsequent chapters elaborate.