When listening to statements made by Muslims, one needs to be very thoughtful about words like peace, tolerance, liberation of women, justice, oppression, brotherhood and democracy because Muslim supremacists have distorted the meanings of these words in their critiques and sermons e.g. 'Islam preaches tolerance', they say this with out mentioning that this tolerance will only come when Non Muslims agreed to pay jizya and abide to live by many other humiliating conditions. So, is the notion of Islamic democracy.
One can not be certain whether Islamic theology has room for democracy but democracy need not be against Islamic law. The fine example is Iran; it elects its leaders and parliament and also has a constitution based on Sharia; all this means Iranians elect a Govt. to enforce Islamic law but not to make new laws.
The basic elements in society are law(constitution), people who make laws and people who enforce these laws.
In Islamic system, constitution is based on sharia which can not be amended or criticized and the Govt., whether elected or hereditary or dictatorship, exists only for enforcing this sharia and other peripheral laws. This kind of system is not similar to how we understand democracy, i.e.western secular democracy, where constitution is made by people and can be amended too.
So, when stealth Jihadists say democracy and Islam are compatible, this is what they mean. They never tell the whole story. Here, a spiritual leader says democracy is un-Islamic:
The spiritual leader of Algeria's influential Salafist movement has issued a 48-page fatwa, or religious decree, urging Muslims to ignore calls for change because he says that democracy is against Islam.
The fatwa by Sheikh Abdelmalek Ramdani, who lives in Saudi Arabia, comes at an opportune time for President Abdelaziz Bouteflika as Algerians watching protests in other Arab states have begun pushing their own political and economic demands.
"As long as the commander of the nation is a Muslim, you must obey and listen to him. Those who are against him are just seeking to replace him, and this is not licit," Ramdani wrote in the fatwa obtained by Reuters.
"During unrest, men and women are mixed, and this is illicit in our religion," said Ramdani, who claims several hundred thousand followers here.....}}}