By definition democracy is something, which is a policy of take decision with the opinion of all people. It is something which allows challenging the extreme power. In Islam we have found that the extreme power is only for one God, and that is Allah. But after this Islam always prefer to follow the democracy in all the sectors.
After the death of last prophet Hazrat Muhammad sm, four Caliphs get the chance of lead the Muslim world. They were the automated choice in that position, the reason was they were the best person in that time and they was the closest person of Hazrat Muhammad sm.

After this when no superior person was not in there, and then Muslim world started to follow a system which is quite like democracy. That times the entire decision tool by the decision of scholar people who were greatly known as “Ulema”.

After times passed this Muslim world started to follow the democracy. In most of the Muslim countries are following this democracy process somehow. Muslim countries like Pakistan, Bangladesh, Malaysia, Syria, Iran, are following this democracy. Some Muslim countries like Saudi Arab still do not running on the path of democracy. Again, this democracy is following differently in Sunni and Shi’a based countries.