Why was this made, and how was it used?
The history of gold dinars in the Islamic world dates back to the late 600s. Having undergone many style changes since then, this dinar struck in 1192 under the Ayyubid dynasty serves to promote Sunni Islam as well as recognize the power of religious and political leaders. Due to their extensive history and high gold concentrations, gold dinars were a widely recognized currency throughout the Mediterranean as well as in Europe and in parts of Asia.
The division between Shi'a and Sunni Islam dates back to the death of the Prophet in which there were disputes over his rightful successor. Following Muhammad's death, a group of early followers elected Abu Bakr, a close companion of the Prophet, while others who became known as Shi'a Muslims supported Ali, Muhammad's cousin and son-in-law, and valued succession based on bloodline. For the first nine centuries after Muhammad's death, Sunni dynasties were dominant in the Middle East and North Africa. The one exception, however, were the Fatimids, a Shi'a dynasty based in Cairo just before Saladin founded the Ayyubid dynasty.