The wazir is informed by his spies that the caliph's bride has disappeared. He rejoices at the power he wields, by having a magician as Emir ("Was I Wazir?"). He instructs Lalume to keep his new Emir happy, and she is eager to comply ("Rahadlakum"). Hajj and Lalume are discussing a trip to a "small oasis, a week's travel by camel" when Marsinah enters the Harem. Father and daughter reconcile, and she tells him of her lover and asks him to find him. At the same time, the caliph, in the next room, orders the wazir to find his love ("And This Is My Beloved"). Hajj and Omar encounter each other and engage in a battle of wits ("The Olive Tree").