The people of the scriptures are also known as the people who has lived on earth before Islam. Allah mentioned some of them as believers and some as disbelievers.
In surat Ali- Imran, there was a section where Allah mentioned the people of scriptures, most especially the virtues of those who embraced Islam among them.
Surat Al Imran is the third chapter of the Quran with two hundred verses. Imran in Islam is regarded as the father of Mary. This chapter is named after the family of Imran, which includes Imran, Saint Anne, Mary, and Jesus. It contained 200 verses, 3,503 words and 14,605 letters. It is classified in Juz’ 3 – 4 of the holy Qur’an and was revealed in Al Madinah.
In verses 113 – 117, Allah says;
﴿لَيْسُواْ سَوَآءً مِّنْ أَهْلِ الْكِتَـبِ أُمَّةٌ قَآئِمَةٌ يَتْلُونَ ءَايَـتِ اللَّهِ ءَانَآءَ الَّيْلِ وَهُمْ يَسْجُدُونَ – يُؤْمِنُونَ بِاللَّهِ وَالْيَوْمِ الاٌّخِرِ وَيَأْمُرُونَ بِالْمَعْرُوفِ وَيَنْهَوْنَ عَنِ الْمُنْكَرِ وَيُسَـرِعُونَ فِى الْخَيْرَتِ وَأُوْلَـئِكَ مِنَ الصَّـلِحِينَ – وَمَا يَفْعَلُواْ مِنْ خَيْرٍ فَلَنْ يُكْفَروهُ وَاللَّهُ عَلِيمٌ بِالْمُتَّقِينَ – إِنَّ الَّذِينَ كَفَرُواْ لَنْ تُغْنِىَ عَنْهُمْ أَمْوَلُهُمْ وَلاَ أَوْلَـدُهُمْ مِّنَ اللَّهِ شَيْئاً وَأُوْلَـئِكَ أَصْحَـبُ النَّارِ هُمْ فِيهَا خَـلِدُونَ – مَثَلُ مَا يُنْفِقُونَ فِى هِـذِهِ الْحَيَوةِ الدُّنْيَا كَمَثَلِ رِيحٍ فِيهَا صِرٌّ أَصَابَتْ حَرْثَ قَوْمٍ ظَلَمُواْ أَنفُسَهُمْ فَأَهْلَكَتْهُ وَمَا ظَلَمَهُمُ اللَّهُ وَلَـكِنْ أَنفُسَهُمْ يَظْلِمُونَ ﴾
(113. Not all of them are alike; a party of the People of the Scripture stand for the right, they recite the verses of Allah during the hours of the night, prostrating themselves in prayer.) (114. They believe in Allah and the Last Day; they enjoin Al-Ma`ruf and forbid Al-Munkar; and they hasten in (all) good works; and they are among the righteous.) (115. And whatever good they do, nothing will be rejected of them; for Allah knows well the Muttaqin (the pious).) (116. Surely, those who disbelieve, neither their properties nor their offspring will avail them against Allah. They are the dwellers of the Fire, therein they will abide.) (117. The parable of what they spend in this world is that of a wind of Sir; it struck the harvest of a people who did wrong against themselves and destroyed it. Allah wronged them not, but they wronged themselves.)
Muhammad bin Ishaq and others, including Al-`Awfi who reported it from Ibn `Abbas, said; “These Ayat were revealed about the clergy of the People of the Scriptures who embraced the faith. For instance, there is `Abdullah bin Salam, Asad bin `Ubayd, Tha`labah bin Sa`yah, Usayd bin Sa`yah, and so forth. This Ayah means that those among the People of the Book whom Allah rebuked earlier are not at all the same as those among them who embraced Islam. Hence Allah’s statement,
﴿لَيْسُواْ سَوَآءً﴾
(Not all of them are alike) ﴿3:113﴾.”
Therefore, these two types of people are not equal, and indeed, there are believers and also criminals among the People of the Book, just as Allah said,
﴿مِّنْ أَهْلِ الْكِتَـبِ أُمَّةٌ قَآئِمَةٌ﴾
(a party of the People of the Scripture stand for the right) for they implement the Book of Allah, adhere to His Law and follow His Prophet Muhammad . Therefore, this type is on the straight path,
﴿يَتْلُونَ ءَايَـتِ اللَّهِ ءَانَآءَ الَّيْلِ وَهُمْ يَسْجُدُونَ﴾
(they recite the verses of Allah during the hours of the night, prostrating themselves in prayer.)
They often stand in prayer at night for Tahajjud, and recite the Qur’an in their prayer,
﴿يُؤْمِنُونَ بِاللَّهِ وَالْيَوْمِ الاٌّخِرِ وَيَأْمُرُونَ بِالْمَعْرُوفِ وَيَنْهَوْنَ عَنِ الْمُنْكَرِ وَيُسَـرِعُونَ فِى الْخَيْرَتِ وَأُوْلَـئِكَ مِنَ الصَّـلِحِينَ ﴾
(They believe in Allah and the Last Day; they enjoin Al-Ma`ruf and forbid Al-Munkar; and they hasten in (all) good works; and they are among the righteous) ﴿3: 114﴾.
This is the same type of people mentioned at the end of the Surah;
﴿وَإِنَّ مِنْ أَهْلِ الْكِتَـبِ لَمَن يُؤْمِنُ بِاللَّهِ وَمَآ أُنزِلَ إِلَيْكُمْ وَمَآ أُنزِلَ إِلَيْهِمْ خَـشِعِينَ للَّهِ﴾
(And there are, certainly, among the People of the Scripture (Jews and Christians), those who believe in Allah and in that which has been revealed to you, and in that which has been revealed to them, humbling themselves before Allah.) ﴿3:199﴾.
Allah said here,
﴿وَمَا يَفْعَلُواْ مِنْ خَيْرٍ فَلَنْ يُكْفَروهُ﴾
(And whatever good they do, nothing will be rejected of them;) ﴿3:115﴾ meaning, their good deeds will not be lost with Allah. Rather, He will award them the best rewards,
﴿وَاللَّهُ عَلِيمٌ بِالْمُتَّقِينَ﴾
(for Allah knows well the Muttaqin (the pious).) for no deed performed by any person ever escapes His knowledge, nor is any reward for those who do good deeds ever lost with Him. Allah mentions the disbelieving polytheists:
﴿لَن تُغْنِىَ عَنْهُمْ أَمْوَلُهُمْ وَلاَ أَوْلـدُهُم مِّنَ اللَّهِ شَيْئًا﴾
(neither their properties nor their offspring will avail them against Allah) ﴿3:116﴾. meaning, nothing can avert Allah’s torment and punishment from striking them,
﴿وَأُوْلـئِكَ أَصْحَـبُ النَّارِ هُمْ فِيهَا خَـلِدُونَ﴾
(They are the dwellers of the Fire, therein they will abide.)
Credit: Tafsir Ibn Kathir