Many people especially Non-Muslims pose such questions like this that if Allah (سبحانه و تعالى) is most merciful, why did He create humans when He knew that majority of them will go to Hell-Fire? Why does Allah (سبحانه و تعالى) like to see people burn in Hell? Since we are already here on earth, there is no point in discussing this question, as nothing is going to change. However, since by nature man is curious, we will try to understand why  Allah(سبحانه و تعالى)  created the Universe.

Universe cannot exist if we use the logic and reasoning

The argument is: since majority of the human beings are going to hell, Allah(سبحانه و تعالى) should not have created humans.

If one were to extend the same logic, one may ask why did Allah(سبحانه و تعالى) create these animals when He knew one will eat the other and suffer a painful death.

For example: a deer is hunted by a tiger and lion, mouse hunted by snakes and cats, worms and fishes hunted by birds, plants eaten by cows and goats etc.

Your logic would mean that there cannot be any animals, plants etc. In a nutshell, Allah (سبحانه و تعالى) should not have created any living creature as each one is dependent on the other for its food and they suffer a painful death at the hands of the other creatures.

If there are no living creatures, what is the point in creating a vast Universe?

Allah is not blood thirsty

As some of us perceive, Allah (سبحانه و تعالى)  is not blood thirsty or a Shylock who likes to see people punished in Hell. We need to first understand who enters the hell-fire.

"None will [enter to] burn therein except the most wretched (most evil) one." Qur’an.Surah Layl 92: 15

The prophet Muhammad (ﷺ) said: Narrated by Abu Huraira رضي الله عنهم that Allah's Apostle said, "All my followers will enter Paradise except those who refuse." They said, "O Allah's Apostle! Who will refuse?" He said, "Whoever obeys me will enter Paradise, and whoever disobeys me is the one who refuses (to enter it)." Sahih Al Bukhari Vol. 9:384