No doubt, Allah (SWT) is the absolute needless, but He also is the Most
Merciful, the Most Compassionate, the Most Gracious and He showers His
Mercy. The creation of all Creatures was because of His Mercy which He
wanted to shower on His creatures. He created them and us to make us
enjoy His Mercy. There is no question of need but it is a gesture of
kindness and generosity from Allah (SWT) on the creatures whom He
created.
(response to a similar question was given earlier in this
forum which you may also refer to)
Wassalam.