Democracy in Islam focuses on government and rulers.
Islam is a “total way of life". It has provided guidance in every sphere of life, from individual cleanliness, rules of trade, to the structure and politics of the society. Islam can never be separated from social, political, or economic life, since religion provides moral guidance for every action that a person takes.
Muslims have a right to appoint their rulers, hold them accountable and, when need be, to remove them from office. Islam does not, however, empower the system of government with the right to absolve or change the legislation of the religion. What this means is that the people or their elected officials do not have a right to make permissible what God has forbidden, or to declare forbidden what God has made permissible.
Allah, the Exalted mentions in the Quran, “Let there be no compulsion in religion: Truth stands out clear from error” (Quran 2:256)
The first Article of the constitution laid down by the Prophet Muhammad (PBUH) for the inhabitants of Madinah, the Muslims as well as those who had entered the pact from the Jews, Christians and idolaters, were “one nation to the exclusion of all others". All were considered members and citizens of Medina society regardless of religion, race or ancestry.
The lives of the practitioners of other religions in Muslim society were also given protective status. The Prophet said: “Whoever kills a person who has a truce with the Muslims will never smell the fragrance of Paradise.” (Saheeh Muslim)