The era of the rise and prosperity of the Caliphate puts before researchers many problems of political, economic and social history. Among these problems, the history of the formation of the economic system of the Caliphate is one of the most relevant for medieval studies. This article examines the process of feudalization in the Caliphate, in particular, the administrative and tax practice of the new state, the monetary reform of the Caliph Abd al-Malik, as well as the financial policy of the Umayyad Caliphate. Based on the extensive material of medieval sources and numismatic data the place and role of the city in the economic structure of the Caliphate are investigated.