From a linguistic point of view, the revelation of the Quran was the most important event in the history of the Arabic language. Islam nurtured the quest for learning.
Development of Arabic Writing
The Quran gave written Arabic a form that it had previously lacked. With the desire to preserve the correct pronunciation of the Quran, efforts were made to develop and refine the Arabic alphabet, so that the written manuscript could serve as an accurate aid to those with weaker memorisation, wanting to revise what they had learned from the lips of their teacher. It was within the same context that the first great Arabic grammarian Abul-Aswad al-Du'ali developed the dot system in the first century of the Islamic era. The dot system helped to clarify and establish distinctions which were otherwise unclear in the language. In fact, it can be maintained that, had it not been for the strong desire to preserve the Quran, its form, grammar, pronunciation and accuracy, the Arabic alphabet and writing system might not have developed as quickly as it did.
E.H. Wilds observed the zeal with which the Muslims held education , teaching and learning. In his book 'The foundations of education ,' he wrote ; ".... education was so universally diffused that it is said to be difficult to find a Muslim who could not read and write." 
According to the Quran, learning and gaining knowledge is one of the highest forms of religious activity for Muslims, and of the ones most pleasing to Allah (God). Hence, mosques were turned into classrooms, as were the streets, marketplaces and private homes.
The House of Wisdom - Bayt al-Hikmah
The House of Wisdom was a place where scholar-translators tried to translate into Arabic the important philosophical and scientific works of the ancient world, especially from Greece and Egypt. The House of Wisdom was set up by Khalifah (Caliph) al-Mamun in 1004 in Baghdad, the capital of the Abbasid Khilafah (Caliphate). It was the greatest "think tank" the medieval world had ever seen. Without the translations and research that went on here, much of the ancient Greek, Egyptian and other knowledge would have been lost to the world.
In the tenth Century, Cordoba in Spain was by far the most civilised city in Europe. It is said to have had seventy libraries, the largest of which had 600,000 books. As many as 60,000 treaties, poems, polemics and compilations were published each year in Andalusia (modern day Spain). The library of Cairo had more than 100,000 books, while the library of Tripoli is said to have had as many as three million books before it was destroyed by the Crusaders.
Muslims and the Paper Industry
The large volumes of books found in libraries were made possible after Muslims acquired the skill of paper making from the Chinese, who otherwise kept the art a closely guarded secret, more than 400 years before the rest of non-Muslim Europe. The Muslims employed linen as a substitute to the bark of the Mulberry that the Chinese used. In the process of making paper the Muslims invented and improved methods of maceration. From then on an industry was born where many paper mills were built in Baghdad, with the industry spreading to the various parts of the world. Paper mills constructed in Damascus were among the major sources to the rest of Europe. The impact of Muslim manufacturing of paper was a significant one for the history of literature around the world. It also a paved the way to a new revolution - printing.
Influence on European Literature
No western author epitomised more than Shakespeare the fascination and awe which Europe felt towards the prosperity and the rapid advancement of the Islamic World. London in the time of Elizabeth I had close links with Morocco through trading. It was through Shakespeare's merchant friend that he obtained a great insight into Morocco, its people and culture.
Among his most attractive characters, are two Arabs, or as he refers to them, 'Moors.' Othello was the lead character in the play of the same name, and the Prince of Morocco was one of the noblest figures in the Merchant of Venice. His character are said to be modelled on Sultan Ahmad Al-Mansur. There are a total of 60 Barbary (Morocco) references in Shakespeare's plays.
Arabic Literature, in addition to being an intellectual achievement of the Muslims, also represents one of their most important legacies to the West. It is an aspect of Islamic heritage which, although often neglected, offers important insights into the understanding of Islamic culture and its contributions.
 E.H. Wilds: The Foundation of modern Education, Rinehart & Co., 1959,p. 216.
Source: Islam Explained