So, Islamic mysticism (especially Sufi thought) follows the Vedanta (especially Advaita Vedanta) position that:
- God/Brahman is the only true reality.
- The world is not separate from God/Brahman but somehow emerges from or is sustained by that ultimate reality.
- The multiplicity we perceive (the created world, individual selves) is not ultimately real in the same way God/Brahman is.
So, your statement reflects a non-dual (or monistic) intuition: that all that exists is, in essence, divine. In Advaita Vedanta, this is expressed through:
“Brahman is real, the world is Maya (illusion), the self is not different from Brahman.”
I have read that in Sufi Islam, a similar sentiment comes through wahdat al-wujud — “the unity of being” — particularly in the teachings of Ibn Arabi and others, where “All existence is a manifestation of God, and nothing exists truly except God.”
There are, of course, differences too.
If I am rightly informed, Islamic theology (especially mainstream Sunni Islam) maintains a strict Creator/creation distinction, and even mystics are careful (sometimes perilously so) to avoid pantheism. In orthodox Islam:
- God is utterly transcendent and not identical to the creation. So, this makes this perspective suddenly dualistic again, don’t you think?
- Statements like “There is only God” are mystical utterances that may imply God’s immanence or presence in all things, but not that the world is God.
In Advaita Vedanta, especially in Shankara’s interpretation:
- Brahman is both transcendent and immanent, and ultimately, there is no separation between self (Atman) and Brahman.
- The world is seen as a manifestation of Brahman, not as a separate creation.
I choose the Advaita Vedanta position.