Howl's Moving Castle by Diana Wynne Jones

When walking across the desert, he meets a gang of thieves who have a bottle containing a bad tempered genie who will grant only a single wish a day. Abdullah is lucky to escape with his life when the carpet arrives with Jamal's dog on it. He is then captured by the Sultan of Zanzib who thinks Abdullah kidnapped his daughter, since he doesn't believe in djinn. When he next arrives, Flower-in-the-Night is kidnapped by a djinn. She has been raised in seclusion due to a prophecy that she would marry the first person she meets other than her father. She then introduces herself as Flower-in-the-Night, daughter of the Sultan of Zanzib. He finds himself in a garden with a lovely woman. Abdullah then finds that the carpet is a magic carpet and takes him to places that replicate his dreams (since he dreams of being a long lost prince). He buys a carpet from a man, who claims that the carpet is magical. The novel begins with Abdullah, a young carpet merchant living in a baazar in the city of Zanzib. The story speeds along with tantalizing twists and turns until the prophecies are fulfilled, true identities are revealed, and all is resolved in a totally satisfying, breathtaking, surprise-filled ending. There are good and bad djinns, a genie in a bottle, wizards, witches, cats and dogs (but are they cats and dogs?), and a mysterious floating castle filled with kidnapped princesses, as well as two puzzling prophecies. In this stunning sequel to Howl's Moving Castle, Diana Wynne Jones has again created a large-scale, fast-paced fantasy in which people and things are never quite what they seem. He was content with his life and his daydreams until, one day, a stranger sold him a magic carpet. There was also a princess who had been betrothed to him at birth. In his dreams he was not the son of his father, but the long-lost son of a prince. When he was not selling carpets, Abdullah spent his time daydreaming. His father, who had been disappointed in him, had left him only enough money to open a modest booth in the Bazaar. Abdullah was a young and not very prosperous carpet dealer.

Howl's Moving Castle by Diana Wynne Jones