Imraan ibn Husain RA narrates that Rasulullah SAW was asked:
"How did this world commence?"
Rasulullah SAW replied:
"Allah was on His throne above the water (nothing between the throne and water) and from water he created every living object." (Mishkaat)
The above Hadith also implies that among the first things created, were the souls of human beings, including that of our beloved Prophet Muhammad SAW.