While the drow of Sshamath hold themselves above all other races, they do cede a modicum of respect to races capable of true wizardry. As such, slaves include only those races deemed incapable of manipulating wizardly magic, such as chitines, goblins, grimlocks, minotaurs, and ogres. Members of these and similar races who can use arcane magic are seen as anomalies or trick ponies rather than indications of wizardly ability for the race. Notable races excluded from slavery (except as slaves of visitors) include elves, humans, svirfneblin, and deep Imaskari. Constructs, conjured creatures, and controlled undead are considered objects, even when capable of wizardry, and have no rights.
Races capable of wizardry who reach Sshamath of their own accord as free-willed beings have the right to remain within the city for as long as they obey its laws and conduct ongoing business with residents. Actual citizenship is never granted to nondrow, though permanent residency is allowed so long as business is conducted as mentioned above. This second-class 'ghetto' of humans and Deep Imaskari is never allowed to grow large, but the city recognizes the value of these noncitizens as scapegoats or sacrificial lambs.
Duergar in Sshamath
Most Duergar are to be found in the Darkspires area of town where the metal-work and smithing occurs although some Duergar have trading relationships with the Conclave that permit them to maintain premises in the Dark Weavings Bazaar. Whereas all other non-citizen races are confined to the Darkwoods ghetto the Duergar live where they work for the most part, in the Darkspires.
Drow are inherently racist so they look down their noses at every other race. The Duergar would not be tolerated in a Lolthian city as they are often even more racist than a Drow population. The Duergar (and all other races) will never garner full citizenship in the city, however this is not necessarily a setback as they would make their own alliances both within their race, between other races (svirf etc) and to whichever school of magic holds the most power. Being evil and insanely avaricious, Duergar keep working for Sshamath to make more money than they could at home. A large percentage of the Duergar in Sshamath have been sold into indentured service by their own families, such is the avaricious nature of the grey dwarves.
The Conclave could one Cycle decide "we want the Darkspires back all, Duergar must leave the city" but in practice as long as the Duergar remain neutral (i.e. not ally themselves to a single school of magic) the Conclave will keep them around for the benefits they bring.
Svirneblin in Sshamath
Svirfnbelin (or deep gnomes) are traditionally very shy and secretive as a race, and mortal enemies of the Drow. At first glance it is odd that they would have a presence in the city. However, their natural propensity for Illusion magic confers the status of "free" if not "citizen" upon them. The Drow population views them less favorably than the resident Duergar, going out of their way to belittle, put-down and generally demean them at every turn. Despite this some Svirneblin willingly choose to live in Sshamath for the opportunity it brings to trade in some of the rarest gems and minerals in Faeraun. Not to mention to study at the schools of magic.
Most of the deep gnome population resides in the Darkwoods ghetto along with the rest of the majority of free non-citizens of the city although some do reside elsewhere either as retainers to one of the schools of magic or as the occasional merchant in the Dark Weavings bazaar.
Slaves
Sshamath is as close to a free city as you will get from the drow, designed to encourage trade so the Conclave can accumulate as much magical might as possible. A large variety of races live and work together as free people than do in Menzoberanzan or Ched Nasad. Slavery is critical to the functioning of any drow city. Compared to other humanoids Drow are not numerous, they reproduce slower, and require more resources to raise to adulthood.
That being said Sshamath treats slavery differently than other drow cities. Whereas in other cities anyone who is weak enough will undoubtedly become a slave, in Sshamath races considered capable of wizardry such as humans, elves, svirfneblin and deep imaskari are never kept as slaves. However they are permitted as the slaves of temporary visitors. The slaves of Sshamath are largely resigned to their fate because compared with slaves in other cities their lot in life is not bad. It is for example considered poor form to casually starve, injure or kill a slave, unless he is rebellious. In addition to the liberal use of charm magic, the conclave permits visitors to bring in small groups of their own slaves and to occasionally purchase slaves from other cities. These practices ensure that Sshamath's slaves are aware that their life here is not nearly as bad as elsewhere.
Creatures who demonstrate an aptitude for wizardry are considered free in the eyes of Sshamath law and are allowed to live, albeit in a ghetto: the Darkwoods. The ghetto is populated by a host of shebali (commoner) drow, rivvil (humans), svirfneblin and many other non-citizens of Sshamath. The Duergar are the exception as they forged a direct relationship with the Conclave, maintaining their own quarters in the Darkspires.
Free Races: approximately 50,000 total
Drow: 75%
Duergar: 10%
Svirfneblin: 5%
Darthiir (all surface elves): 1%
Human: 6%
Deep Imaskari: 1%
Other: 2% (all other races combined)
Slave Races: approximately 50,000 total
Goblin 39%
Grimlock 19%
Orc 12%
Ogre 10%
Minotaur 9%
Outsider 5%