There is a lot of ink being spilled on the question of the compatibility of Islam with democracy. Here is a link to a paper by Mark Tessler, published in the journal, Comparative Politics, in 2002.
“Islam and Democracy in the Middle East: The Impact of Religious Orientations on Attitudes Toward Democracy in Four Arab Countries,” Comparative Politics, Vol. 34 (April 2002): 337-354.
If you are on campus, here is a direct link to a pdf version of the article.
From the Abstract: