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").