His recognition was acknowledged by Muhammad Ali Jinnah, who became a good friend and appointed him advisor to the freedom movement of the Muslims, which eventually led to the creation of Pakistan. Dawood convinced the entire Memon and many from other Gujarati Muslim communities to migrate to Pakistan. With this vision in mind again at the request of Jinnah, he also established two major institutions along with Abul Hassan Isphani i.e. The Muslim Commercial Bank Limited and the Orient Airways Limited, forerunner of Pakistan International Airlines.[5] The purpose of this was to assist the migration process by providing transport of Muslims to Pakistan and to create banking facilities in the new country, Pakistan.