Buddhism originated from India, and was founded by Prince Siddharta Gautama, who later came to be known as Buddha, or the enlightened one. Born of a princely caste, he later renounced his comfortable life in search for nirvana. In order to do that, he joined a band of ascetic, who was a group of Hindu priests. In his teaching, the Buddha taught his followers to follow "the middle way", that is, not the way of extreme asceticism. He attained full understanding of the nature of being by meditation and after his success, decided to impart his knowledge to those who follow him .
Islam, on the other hand, started in Mecca, where Prophet Muhammad (Peace be Upon Him) was born. He was believed to be that last nabi (messenger) that Allah will give to the world. The religion was not well accepted in its city of origin though, due to the opposition the Prophet faced as a nascent community . Later, he was invited to Medina and Islam expanded from there.
Both these religions have basic beliefs that are relatively different from each other. Buddhists on one hand believe in karma, rebirth, dharma and moksa. Karma is "cause, effect and the law which equilibrates the two" . It is the consequences of every action, whether good or bad. This action-reaction may take effect anytime, may be in the current life or not. Rebirth is inter-connected with karma. If one did more good things than bad in his life, his karma will lead him to a life of better condition than the previous one. Dharma is the basic concept of the religion; that is the Buddhist teaching,