In Persian, dīwān is a name for devils. The register was given this name because of their expertise in matters, their awareness of what is apparent and what is hidden, and their ability to gather together what is scattered and dispersed. The place where they sat was then also given their name, and thus it came to be called a dīwān. The first person to establish a dīwān in Islam was Umar ibn al-Khattab.
As for the reason it was established, it is related that Umar consulted the people about compiling registers. Ali ibn Abi Talib said, “Distribute every year whatever wealth comes to you, and do not retain any of it.” Uthman ibn Affan said, “I see a great deal of wealth, enough for the people. But if they are not counted, so that it may be known who has received a share and who has not, I fear that the matter will become widespread.” Khalid ibn al-Walid said, “I was in Syria and saw that its kings had compiled registers and organized armies. So compile a register and organize armies.” Umar accepted his advice.
He summoned Aqil ibn Abi Talib, Makhrama ibn Nawfal, and Jubayr ibn Mut'im. They were among the leading men of Quraysh and the most knowledgeable of their genealogies. Umar said, “Record the people according to their ranks.” They began with Banu Hashim and recorded them; then they followed them with Abu Bakr and his people, then Umar and his people. They recorded the tribes and arranged them according to precedence. They then gave the register to Umar. When he examined it, he said, “No—I wish it had been arranged this way. Rather, begin with the closest relatives of the Messenger of Allah, Allah bless him and grant him peace, then those closest to them, one after another, until you place Umar where Allah Most High placed him.” Al-Abbas thanked him for this and said, “You have upheld your kinship.”
Zayd ibn Aslam related from his father that the Banu Adi came to Umar and said, “You are the successor of the Messenger of Allah, Allah bless him and grant him peace, and the successor of Abu Bakr, while Abu Bakr was the successor of the Messenger of Allah, Allah bless him and grant him peace. So why not place yourself where these people who compiled the register placed you?”
He replied, “Bravo, Banu Adi! You want to eat at my expense and have me give my good deeds to you. No, by Allah! Not until your turn comes, even if the register closes before reaching you”—that is, even if you were recorded last of all. “I have two companions who followed a path; if I diverge from them, I will be regarded as having opposed them. By Allah, we did not attain virtue in this world, nor do we hope for reward in the Hereafter for our deeds, except through Muhammad, Allah bless him and grant him peace. He is our honor, and his people are the noblest of the Arabs; then come those nearest, each according to his closeness. By Allah, if the non-Arabs come with deeds while we come without deeds, they will have a stronger claim to the Messenger of Allah, Allah bless him and grant him peace, than we do on the Day of Resurrection. Whoever is held back by his deeds will not be propelled forward by his lineage.”