This paper is based upon the assumption that within the next five years or so, bulk of the Islamic world will get rid of their dictators and be governed by democratic regimes. If so, what kind of a state and what kind of an economic system will these countries have? But now that democracy is advancing, the future political and economic systems of Islamic countries will be decided by the peoples themselves. What then will be this system like? The author will argue that it should fulfill four conditions:
a) It should be compatible with the Shari`ah
b) It should emerge from the age old traditions of Muslims
c) It should be desired by the people
d) It should be able to address modern needs.