Saladin, somewhat indifferent in terms of money, is currently in financial trouble. That is why, on the advice of his more calculating sister Sittah, he has the wealthy Nathan brought to him to test his generosity, which is praised throughout Jerusalem: Instead of asking him directly for a loan, Saladin pretends that he wants to test Nathan's famous wisdom and asks him about the "true religion". Nathan, who had already been informed about Saladin's financial troubles by his friend Al-Hafi and warned of his financial recklessness, recognizes the trap. He decides to answer Saladin's question with a "fairy tale", the so-called "ring parable". Deeply impressed, Saladin immediately understands this parable as a message about the equality of the three major monotheistic religions. Moved by Nathan's humanity, he asks him to be his friend from now on. Nathan willingly agrees and, on top of that, grants Saladin a generous loan without being asked.