State is historical institution. The Peace of Westphalia (1648), concluded at the end of the Thirty Years’ War, is often taken to have formalized the modern notion of statehood, by establishing the state as the principle actor in domestic and international affairs. On the contrary there is no direct reference in the holy Quran regarding the establishment of state, even the term or its Arabic equivalent 'dawlah' has never been used in the holy Quran, instead there is mention of some basic political precepts such as justice, equality, tolerance, fulfilling of promises and also the principle of shura etc. This research paper aimed at to understand this debate regarding state in Islam in modern times. It also explains that the objective of Islamic teaching is not establishment of state.
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