Baghdad to search for his son, and Hajj rejoices in his new-found riches ("Fate" (reprise)). Back in the city, the wazir of police comes through the busy bazaar ("Bazaar of the Caravans"). The evil wazir and his seductive, beautiful wife-of-wives, Lalume, discuss a loan he desperately needs. In return for the money lent from the king of Ababu, the wazir must arrange for the caliph to marry one (or all three) of the princesses of Ababu, who perform a sexy dance. Through their amah, the princesses tell Lalume that they wish to return home. Lalume convinces them that Baghdad is much more exciting than any other place on earth ("Not Since Nineveh"). Marsinah is being pursued by a fruit merchant whose wares she has stolen. Her father arrives to rescue her, giving the man money. Hajj gives his daughter half of the money and leaves. The merchants set out their finest "Baubles, Bangles and Beads" for the young lady. The young caliph and his advisor, Omar Khayyam, have been traveling incognito. He is struck by Marsinah's beauty and follows her. Elsewhere, Hajj is basking in the glow of some scantily-dressed slave girls he has just bought, when he is stopped by the police, who are checking identities because they are looking for Jawan. The Chief recognizes, on the coins, the crest of a family Jawan has robbed and arrests Hajj as a thief. Meanwhile, Marsinah has found a quaint little house with a beautiful garden to buy for her father and herself. She is admiring the garden when the Caliph slips in and, pretending to be a gardener, introduces himself to her. They fall in love on the spot ("Stranger in Paradise"). They promise to meet again in the garden at moonrise. The Caliph tells Omar that he has fallen in love, which is overheard by the princesses of Ababu; they are furious that he seems to ignore them, but the Chief Policeman reassures them that "He's in Love". At the wazir's palace, Hajj is on trial for the theft of 100 pieces of gold. The wazir has no need for evidence; he sentences Hajj to 20 lashes, and his right hand is to be cut off. The poet pleads that, as a poet and storyteller, the loss of a hand would cripple his career; it is the gesture that tells the story ("Gesticulate"). The lovely Lalume, attracted to the