Our number system has been inappropriately called the
    “Arabic number system”. The correct name is the “Hindu number system”,
    since it actually originated in India. 
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Positional number systems 
In a positional number system like we use today, a
    single symbol (like “5”) can be used to mean five, or fifty, or five
    thousand, depending on its position. It is easy for us to take this number
    system for granted, unless we compare it to the Roman system of numbers. 
Our positional system of arithmetic was completely
    unheard of in thirteenth century Europe. The
    Roman system, where V meant “five” and L meant “fifty”, was use for
    notation by European merchants. However, since even adding two numbers
    together was very cumbersome with Roman numerals, they used the abacus when
    they wanted to do arithmetic.  
Because of this positional notation, there are
    relatively simple longhand methods for addition, subtraction,
    multiplication, and division. 
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Hindu beginnings 
The Babylonians had probably the first positional number
    system around the 19th century BC. Their number system was, however, a sexagesimal system, being based on 60. Remnants of the
    Babylonian system remain today in the fact that there are 60 seconds in a
    minute and 60 minutes in an hour. 
The Mayan culture independently developed a positional
    number system that was based on 20 and 18. This system was in use perhaps
    as early as 400 BC. 
A positional number system was also developed in India as
    early as 594 AD, where it was used to record a date. Numerous other dates
    were written in positional notation in the 700’s and 800’s. Historians have
    disputed all these documents. It is possible that they were forgeries
    actually written at a later date. The first appearance of Indian positional
    notation that historians have accepted was in 876 AD. 
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Arabic  
Of the three positional number systems, the Indian
    system has survived largely because
    of a good PR man. The Arab al-Khwarizmi wrote a book entitled “Concerning
    the Hindu Art of Reckoning” sometime in the early 800’s. This book largely
    was derived upon the earlier work of Brahmagupta. 
The account of
    the Hindu numbers and their use in calculation by al-Khwarizmi was so clear
    that he was mistakenly credited for developing the system. As a result, we
    even see historians of mathematics refer to our number system as the Arabic
    system. [Rouse Ball, p. 166 and p. 167] 
Al-Kwarizmi was a Persian from
    around 800 AD. He belonged to a school in Baghdad that was responsible for the
    preservation of much of the earlier science. Greece was the center of
    science up until about 300 AD. India took over, and then the
    torch was passed to the Persians, thanks to a very forward looking ruler
    whose name escapes me right now. (This is all from memory, sorry.) We have
    this king to thank for the knowledge of Euclid's Elements, for the works of
    Ptolemy and Aristotle, and for the math contributions of the Hindus. 
This Persian school was also the birthplace of Algebra.
    Al-Kwarizmi wrote the first book on algebra. A
    word or two from the title became our word "algebra". 
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Europe 
Fibonacci wrote the book Liber
    Abaci in 1202, in which he introduced what he called the Arab system of
    numbers into Italy.
    Adelard of Bath
    and John of Seville also introduced the
    Hindu system to Europe [Boyer, p. 252] 
Enter Leonardo di Pisa, also
    known as Fibonacci. Today, he is known for inventing the Fibonacci series
    which has to do with counting generations of rabbits. He had a much more
    significant contribution to European math and commerce, though. He was
    studying Arabic texts, and came upon a book by Al-Kwarizmi
    entitled "On the calculation with Hindu numerals".  
Getting back to the story, Leonardo was quite taken with
    the idea of doing calculating with this notation. He understood that, with
    the Hindu notation, businessmen would no longer need an abacus to multiply
    two numbers together. They could do long multiplication like we do today.
    He translated this book by Al-kwarizmi into Latin
    to make it available to the businessmen of the day. 
Leonardo was careful to credit the book to Al-Kwarizmi. He even included the name of the original
    author in his Latin title: Algoritmi de numero Indorum. Unfortunately
    for the history of math, the populace did not understand that "Algorithmi" referred to a person. It was assumed
    that this word was the name for the method of calculation that was
    introduced to Europe in this book. As an
    aside, this misconception is the origin of the word algorithm. 
Somewhere along the line, Europe also forgot that the
    original number system came from India,
    and not Persia.
    Today, we incorrectly refer to our numbers as Arabic. It is somewhat more
    correct to refer to our number system as Hindu-Arabic, as they are
    sometimes called. The accurate description, though, is "Hindu". 
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The effect of the Hindu number system on European
    mathematics cannot be over. In the words of Laplace: 
The ingenious method of expressing every possible number
    using a set of ten symbols (each symbol having a place value and an
    absolute value) emerged in India.
    The idea seems so simple nowadays that its significance and profound
    importance is no longer appreciated. Its simplicity lies in the way it
    facilitated calculation and placed arithmetic foremost amongst useful
    inventions. The importance of this invention is more readily appreciated
    when one considers that it was beyond the two greatest men of Antiquity,
    Archimedes and Apollonius. 
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The system was not jointly developed by Hindus (inhabitants of India) and Arabs. With Hindu-Arabic each place is populated by only one character and that represents that places value but in Egyptian each character is repeated for the desired value of each place.Therefore, yes it is arabic
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