Abraham has physical descendants and he has faith descendants. The NT consistently argues that the thing that really constitutes the people of God is faith. This faith is available to physical and non-physical descendants of Abraham on the basis of God’s great mercy and grace. We Gentiles are also included in the covenant promises made to Abraham. Abraham was chosen that we all might be chosen. It was God’s way of salvation for all people; it is by grace-through-faith adoption that we are faith-heirs of Abraham.
Abraham is “The father of circumcision to those who not only are of the circumcision, but who also follow in the steps of the faith of our father Abraham which he had while uncircumcised.” Romans 4:12 (NASB)