Electromagnetic wave scattering from large and complex bodies is currently the most challenging problem in computational electromagnetics. There is an increasing need for more efficient algorithms with reduced computational complexity and memory requirements. In this work we solve the problem of electromagnetic wave scattering involving three-dimensional, homogeneous, arbitrarily shaped dielectric objects. The fast multipole method (FMM) is used along with the algebraic multigrid (AMG) method, that is employed as a preconditioner, in order to accelerate the convergence rate of the Krylov iterations. Our experimental results suggest much faster convergence compared to the non preconditioned FMM, and hence significant reduction to the overall computation time.