During the next phase, he shows the capacity to compromise and demonstrates the foresight and wisdom to realize that peace, even at seemingly unfavorable terms, is better than hostility. the "treaty of hudaybia" also needs to be studied and emulated by all who negotiate with their opponents. The peace dividend, following this treaty with the quraysh, is huge and results in an exponential increase in the number of Muslims.

This also allows the building of a model and just society that functions in a coherent manner. Wealth is allowed to be accumulated but has to be circulated fairly into even the tiniest capillaries of the community's economic system. It is an egalitarian society with equity and justice for all, governed by mutual consultation, equality before the law and protection of its most vulnerable members, women, children, orphans, indigents and slaves.

As illustrated by many incidents from this phase of his life, the Pophet proves to be an exemplary statesman. He mediates disputes, defuses potentially explosive situations with ease, allowing the parties to the conflict to walk away as friends and allies. He is unafraid to take risks but is never reckless and compromises for the sake of peace. His emissaries to other nations bring with them a message of cooperation seeking common ground. when he gives a pledge, he always keeps it. If the other party breaks the pledge, he does not flinch from measures that are appropriate to maintain the sanctity of the pledge.