The vizier of the Abbasid Caliph of the time got wind of the event of Shaikh Mufeed and his excellent knowledge . His name was Sultan Az Dawla. He was himself a friend of the Ahl al Bayt (a.s).
When he heard of the arrival of this new scholar in Baghdad who had defeated the erudite scholars in debate, he was very pleased. He sent a very expensive gift to Sheik Mufeed and requested him to establish a seminary in Baghdad where instruction in the Shii Fiqh should be imparted to the youth. He also sent a valuable steed to Sheik Mufeed the reins of which were made of threads of gold and also sent to him 100 Royal Dinars. Each Royal Dinar was 10 times weightier than the ordinary Dinar. He also gifted a slave for the service of Sheik Mufeed.
He told Sheik Mufeed that there was no center for Shii learning in Baghdad, the capital of the Abbasid realm and the only center was at Qum that was far away from Baghdad. The vizier promised that he would daily send an allowance of 10 Maunds of bread and 5 Maunds of meat for the students of the seminary.
This first seminary was established in the Mosque at Kharq where Sheik Mufeed started educating the seekers of knowledge. Kharq was the neighborhood where the majority of inhabitants were the friends of the Ahl al Bayt.
Shi‘ite Authorities in the Age of Major Occultation Part 1: Sheikh Mufid