The Indian Community in Zanzibar 1804-1856: A Historical Study

This study sheds light on the Indian community that settled on the island of Zanzibar when it was part of the Sultanate of Oman, specifically between 1804 and 1856 under Sayyid Sa‘id bin Sultan al-Busa‘idi. Sayyid Sa‘id did his best to improve conditions for Indians in the sultanate, exempting them from all types of taxes and giving complete freedom to non-Muslim Indians to practice their religions. He some Indians to work for him personally, and they became his most trusted associates. He recruited them to finance-related positions, particularly as Arabs had not exhibited sufficient skill in this field. In the areas he held in East Africa, Busa‘idi entrusted customs administration to Hindus. Indian merchants acted as an intermediary in coastal trade between European and local merchants in Zanzibar, and they participated in the slave trade. They put their capital to work in various commercial enterprises, especially mortgages for Arab-owned properties. These Arabs did not have sufficient capital to fund their commercial activities, so they mortgaged many of their properties for loans from the capitalist Indian moneylenders. Because the Indians charged high interest rates for these mortgages, the Arabs became buried in debt. Much of their property was gradually transferred to the Indian merchants, who succeeded over time in gaining control of most commercial projects on the coast, surpassing their Arab counterparts. Many of them became extremely wealthy thanks to their outstanding ability to accumulate wealth and their skills in finance and accounting. The customs fees and their good command of Arabic and Swahili also helped.