Sharing a similar culture and the core elements of a common faith with Ilshar, the Caliphate is none the less hostile to the Empire. The Empire of Ilshar is composed primarily of descendants of Jhidda while the Caliphate is composed of descendants of Truel. The Caliphate lies to the east of Ilshar, on the peninsula that divides the Sea of Storms from the South Sea.

The Caliphate, though geographically smaller then the Empire, is more densely populated, giving it a population almost equal to Ilshar.  Add to it the advantage of having an enemy (the Empire) on only one land border, gives the Caliphate a strong strategic position.
The Caliph of Trusk is NOT the Secular ruler of the land.  (That role is held by the Khan of Sumea.)  The Caliph IS the religious leader of Trusk (and many other Followers of Bala in Palador and elsewhere.) He does not deal with the day to day concerns of governing, but rather is immersed in theological issues and mystical matters. 

The Caliphate consists of the heartland of Trusk, along with the ancient City State of Illith and the Khanate of Sumea.

Trusk:  Much like Balaghad, Trusk is an important religious and cultural region for all of Palador and especially for the followers of Bala.  It is the site of the Shrine of The Stone (though it is empty.)

City State of Jewel:  According to legend the city was built by an alliance of Elves, Dwarves and Humans as a bulkwark against the Goblins.  After the Goblin Wars were over, the Elves and Dwarves went back to their homes in Solista, leaving the city to their human allies.  To this day, City Law prohibits Goblins (of any kind) from entering the city.  However, Goblin traders have a large settlement literally against the southern walls of Jewel, called ‘Goblin Town’ or the ‘Goblin Market.’   This area has existed for well over two hundred years with no major problems. 
Jewel’s ruler, called the ‘Mir’ is a lifetime position that is elected by the Jewel Senate, which is made up of the heads of thirty noble families.  These men and women, who have the title ‘Edlar’ write and pass the laws which the Mir enforces.
Jewel’s fortifications, and its renowned ‘School of Wizardry’ makes it a major power despite its relatively small size.

Khanate of Varrath:  For the Caliphate, Varrath is both the bread basket and factory.  Rich mines produce an array of metals and the land is fertile and productive.  The ruling family, claiming descent from Truel, are the Khans (Kings) of all of Varrath  and Trusk (though NOT of Jewel.)