Answer
Allah SWT has told us in the Quran that prior to being born in this world, all human beings were formerly born in a different world. The state of human beings at the time of that initial birth is referred to as “Aalam-e-Arwah. The actual definition of Aalam-e-Arwah is the time (also called “Ahad
Alast” by the Quran) spent by humans in another world before coming down to this earth.
When we come down to this earth, we are born with a body and our nafs which is called soul. When we die and leave this world, our physical body stays here in the soil and our soul is taken out. This is also a kind of Aalam-e-Arwah but Quran generally uses a different term for that stay of soul and calls it “Barzakh” meaning it is a time when there is no “body” but just the “soul”.