Even before we can talk about an Islamic state, we are compelled to face a basic question: does Allah (subhanahu wa ta'ala) command human beings to live under a specific political order? If so, does that political order have a definite form? These aren't trivial questions, because there are voices among the Ummah who claim very stridently that there is no specific political system in Islam. We disagree, of course, because there are clear texts from the Qur'an and Sunnah that apply directly upon the topic.

When it comes to the subject of the Khilafah (Islamic political system), Allah (subhanahu wa ta'ala) ordered us to rule by whatever He sent down:

So rule among them by that which Allah has revealed and follow not their desires instead of the truth that came to you. (TMQ, Al-Ma'idah 49)

We can conclude two points from this Ayah:

1) Something was sent by Allah (subhanahu wa ta'ala).
2) There are rulings according to what was sent by Allah (subhanahu wa ta'ala).

The Prophet (SAAW) ruled according to whatever Allah (subhanahu wa ta'ala) revealed to him. The science of usul ul fiqh tells us that the actions of the Prophet (SAAW) explain the text. For example, Allah ordered Muhammad (SAAW) to pray:

Establish worship, practice regular charity, and bow your heads with those who bow (in worship). [TMQ, Al-Baqarah 43]

So Allah (subhanahu wa ta'ala) ordered us to pray, and Muhammad (SAAW), through his Sunnah (example), showed us how to pray, "Pray the way you saw me praying". Allah (swt) ordered us to perform Hajj, but He didn't tell us the details of how to perform Hajj in the Qur'an al-Karim. "Take the actions of the Hajj from me," said the Prophet (SAAW), who performed Hajj in a specific way, teaching us what to do to the last detail. When he stood on Arafat he said, "I stood here, but all Arafat is a good place to stand in". When he reached Mina he said, "I spend my nights in Mina, but the entire area of Mina is a good place to stay in".

Thus, Allah (subhanahu wa ta'ala) ordered us to pray, and Muhammad (SAAW) explained to us in his Sunnah how to pray. Allah also ordered us to perform Hajj, and Prophet Muhammad explained to us, through his Sunnah, how Hajj is done. Allah, of course, ordered Muhammad to rule the people by what was sent down to him; Muhammad (SAAW) showed us how he ruled the people.

The type of system that the Messenger established, we must follow today. Muhammad (SAAW) functioned as the head of state, so there must still be a head of state. He established a state, so there must be a state now. Abu Bakr (RAAH) was called Khalifah; Umar bin al-Khattab (RAAH) was called Amir al-Muminin; Ali bin Abi-Talib (RAAH) was called al-Imam: these titles don't matter - if you call the head of state the Khalifah, Amir al-Mumineen, or al-Imam, that's fine. But if you borrow a title that has non-Islamic connotations, for example, you call the head of state emperor, or king (monarchy system), this is not allowed.

The next question that needs to be answered is, do we have to have a state? Is it mandatory to have a state? The answer is yes, and there's plenty of evidence for this: Allah (subhanahu wa ta'ala) sent Islam to be implemented in totality. But Islam cannot be fully implemented by just you and me. What we can implement is that part of Islam that is related to the relationship between me and you. For example, I can pray, he can pray; we can pay Zakat, he can perform Hajj. If there is buying and selling between me and you, it must be done by Islam. If there is a marriage contract, it must be done by Islam.

Now when it comes to what Allah (subhanahu wa ta'ala) says:

As to the thief, male or female, cut off his or her hands: a punishment by way of example, from Allah, for their crime; and Allah is Exalted in power. (TMQ, Al-Ma'idah 49)

It's not up to me or you, or even to all of us, to cut off the hand of any thief. Even if we have an Imam in the masjid, it's not up to the Imam to come and cut the hand of a person who steals in the masjid. Why is this? - Because he's not authorized to do so. Islam did not authorize him to perform this action; Muslims did not give him ba'yah (pledge of allegiance) to do so. The people within the Masjid cannot give the ba'yah to a person to cut the hand of a thief. A chosen person has to be given authority, acting through a state, a legal system, and a judiciary. When Rasulullah (SAAW) was acting as a judge, he cut the hand of a thief under the capacity of being a judge. Whatever Rasulullah (SAAW) did as a judge is an example for all judges. Whatever he did as a leader is an example for all leaders. Whatever he did as an Imam is an example for the head of state, or for the Imam. Whatever he did as an imam in the prayer, is an example for the imam in the prayer. Whatever he did as a father, is an example for the father. Whatever he did as a husband, is an example for the husband. Whatever he did as a neighbor, is an example for the neighbor.

There must be a system to apply Islam; this system is unique, because it's from Islam. There is room to move within the text, but the extent of movement is very much defined by the text. Because of the absence of Islam it's difficult to explain the rules of the economic and political system. It's very easy to simplify, and to talk to people about the rules of Salat, or Hajj, because al-hamdu lillah, these acts of worship are being practiced on a regular basis. But when it comes to economics and politics, due to the neglect of these parts of Islam, and due to the dominance of non-Islamic systems, and especially capitalistic systems, it's very difficult to present the Islamic political and economic systems to the people. People will criticize the Islamic systems on the basis of the current regimes/examples/models that we have. Yet even though it's difficult, we have to talk about these systems.

In conclusion, there has to be a political system that is defined by Islam. Islam didn't provide a political system without defining it. It can't be imagined that Allah (subhanahu wa ta'ala) left this important aspect of Islam out. The Qur'an states:

…We have revealed the Book to you explaining clearly everything, and a guidance and mercy and good news for those who submit. (TMQ, An-Nahl 89)

This means that everything is explained in terms of the halal and the haram. Islam defined this system, but we need to start initiating discussions about this system. If someone has another opinion in this regard, he is welcome to present it, but in the end our final reference is the Wahy (revelation - Qur'an and Sunnah). This is the point.