Yes, indeed, there are few verses in the Quran which address this issue. For example, we read in the Quran:
{Then We made the sperm into a clot of congealed blood; then of that clot We made a (fetus) lump; then we made out of that lump bones and clothed the bones with flesh; then we developed out of it another creature. So blessed be Allah, the best to create!} (Al-Mu’minun 23:14)
In this verse, Allah (God) the Almighty was explaining the process of the creation of the embryo in the womb of the mother. The last segment mentions, “so blessed is Allah the best of creators.”
Also, another verse of the Quran tells us the following:
{Will you call upon Baal (a false god) and forsake the Best of Creators.} (As-Saffat37:125)
In the above verse, Allah is criticizing the disbelief of those who worship idols, and one of the idols during the revelation of the Quran was known as “Baal”.
Also, the phrase, “the Most Merciful of the merciful ones”, was mentioned in the Quran approximately four times. Then, in another couple of times, there is, “the Best of all merciful”, which basically provides the same meaning.
So, it is true that it is mentioned in the Quran in a couple of verses that Allah is “the Best of all creators” and in several verses that Allah is “the Most Merciful of all merciful”.
To answer your question—Does this mean that there are many creators and that Allah is the Most Merciful of them, and there are many merciful gods and Allah is Most Merciful of them?— No. Allah is the only Creator and God. And the owner of Mercy.
First of all, the word “khaliq” (creator) in Arabic also means “sani” (manufacturer). So, every person who does anything, makes up anything, or manufactures anything is also called “khaliq“.
If we translate the word “khaliq” into English, then the only translation will be “creator”.
There is no competition whatsoever between the creation and Creator. The creation may manufacture things. We, as a part of the creation; create cars, homes, and so on. And this action and these things can also be called creation.
Yet, there is no comparison between what we created and what Allah the Almighty creates.
Moreover, Allah the Almighty says:
{Allah is the Creator of all things, and He is the Guardian and Disposer of all affairs.} (Az-Zumar 39:62)
So, when Allah the Almighty describes how He created the human being, He has proven to us how He created us because we had no idea whatsoever at the time these verses were revealed, over 1,400 years ago.
Then, He raises the question: is there anyone who is better in creation than Allah the Almighty? He is indeed the best of all creators.
Another interesting point is that Allah the Almighty says in the Quran that He named some of his creatures and gave them this power of creation, but only by His leave:
{Then will Allah say: “O Jesus the son of Mary! Recount My favor to you and to your mother. Behold! I strengthened you with the Holy Spirit, so that you did speak to the people in childhood and in maturity. Behold! I taught you the Book and Wisdom, the Law and the Gospel and behold! You make out of clay, as it were, the figure of a bird, by My leave, and you breathe into it and it becomes a bird by My leave, and you heal those born blind, and the lepers, by My leave. And behold! you bring forth the dead by My leave. And behold! I did restrain the Children of Israel from (violence to) you when you did show them the clear Signs, and the unbelievers among them said: ‘This is nothing but evident magic.'”} (Al-Ma’idah5:110)
In this verse, Allah the Almighty reminds Prophet Jesus(peace be upon him) of His favors upon him. So, every miracle that he was able to do, and when he was able to make the figure of a bird and breathe life into it, all of that was by the leave of Allah
When Allah the Almighty says, “Blessed be Allah the Best of all creators,” it does not mean to compare between the Creator and the creation.
Rather, Allah is showing His ability and His infinite power in creation, and asking a rhetorical question, if there is anyone who can create like Him? The answer is obviously, “No”. Accordingly, He is the only one worthy of worship.
Another verse of the Quran reads:
{Yet have they taken, besides him, gods that can create nothing but are themselves created; that have no control of hurt or good to themselves; nor can they control death nor life nor resurrection.} (Al-Furqan 25:3)
Allah says that those who have been worshiped or taken as false deities besides Him, or instead of Him, are powerless, as they cannot create.
Here, we are talking about the actual creation, which is explained at the end of this verse as giving life, giving death, and bringing up the dead after their death.
No one can do that except for the One who is the true and the ultimate Creator, God Almighty. He stated that after He explained in the previous verse some of His traits:
{He to whom belongs the dominion of the heavens and the earth: no son has He begotten, nor has He a partner in His dominion: it is He who created all things, and ordered them in due proportions.} (Al-Furqan 25:2)
So, that is the actual meaning of the creation once it is ascribed to God: giving life, giving death, bringing up the dead. And that is why humans as creatures may be given the description or the term “khaliq” (creator) because they can make up things, also by the leave of Allah.
No one would be given this beautiful name of God but Him. This name in Arabic called “Al-Bari“. “Al-Bari” is the one Who creates things that did not even exist before.
In this regard, God challenged those who worship other than Him, or believe in other than Him. In addition, He challenged those who have been taken as deities besides him:
{O men! Here is a parable set forth! Listen to it! Those on whom, besides Allah, ye call, cannot create (even) a fly, if they all met together for the purpose! And if the fly should snatch away anything from them, they would have no power to release it from the fly. Feeble are those who petition and those whom they petition!} (Al-Hajj 22:73)
So, in this verse Allah says that no one has the power of creation by the meaning of bringing up from nothing, from non-existence, but Him. When He even allows us to make up things, to construct things, this happens only by His permission.
He is the best of all creators; and that does not at all mean to compare the creation of God and the creation of the creatures when they make up things or manufacture things.
It is worth of mentioning here that in the second chapter of the Quran, there was very important beautiful debate between Prophet Abraham (peace be upon him) and a tyrant king who claimed lordship.
In that story, Prophet Abraham (peace be upon him) said:
My Lord is the One Who gives life and death, the One Who creates, the One Who cause to die.
The tyrant king who claimed the lordship said:
Me too, I give life and death.
He tried to prove that by killing somebody who was innocent. Then he said:
Look, I am able to kill.
As he was a king, he ordered somebody who was sentenced to be executed, to be freed. Then he said:
Look, I give life as well.
So, in this case, Prophet Abraham challenged the tyrant king by saying:
Indeed, my Lord is the one who brings up the sun every day from the east. Can you bring it once from the west?
And the Quran concluded the story by saying:
So the disbeliever was utterly defeated.
The Most Merciful of the Merciful
As far as the second phrase: “Allah is the most merciful of the Merciful” or “the best of all merciful”, it was mentioned twice in the Quran as “the best of all merciful,” and another four times as “Allah is the Most Merciful of the merciful”.
It is very easy to understand once you understand that Prophet Muhammad (peace be upon him) said that Allah has divided mercy into 100 portions; and He sent one portion out of 100 down to earth.
Out of this one portion we have mercy for each other.
Why do animals have mercy for their children and look after them, although they are wild animals? Because of this one part of the mercy, which Allah gave to us on Earth, we love each other.
We have sympathy and mercy on each other out of this one part. And He preserved for Himself 99 parts of mercy, so that He will distribute among those who are eligible for it on the Day of Judgment in order to receive salvation to enter Heaven.
That indicates all mercy belongs to Allah alone. So mercy too, is created by God, and He is the Most Merciful of all, and there is no comparison whatsoever between the mercy that we have for each other, and the mercy the Allah the Almighty has for all of us.
Also Surah 96 Allah Swt taught men "He who taught by the pen"
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Rabbi Akkiva says they are better creators than god? Such blasphemy.