Sir Fazle Hasan Abed founded BRAC University in 2001, under the Private University Act. The university was formally inaugurated by the President of Bangladesh and the Chancellor of BRAC University, Shahabuddin Ahmed, at Osmani Memorial Hall, Dhaka, on June 16, 2001. The university began with just three departments and around 80 students in 2001 at Mohakhali, Dhaka. The university is based on the American liberal arts college model. It held its first Convocation in January 2006. As the university grew, it increased the number of programs and introduced master's degrees. The development of a library with high academic standards was important to Sir Abed. The Ayesha Abed Library was digitized shortly after its inception. The university had 11,200 students in 20 schools, departments, and institutes in 2020. In 2023, Brac University authorities have proposed to change its name to "Sir Fazle Hasan Abed University", and "Abed University" for short. But University Grants Commission declined it. Now, BRAC University has a permanent city campus in Merul Badda, Dhaka.