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This paper analyzes the form and application of Islamic laws in the Islamic political system. The paper asserts that the legitimacy of the Islamic political system depends on Baia being given to one person, i.e. the Imam, and thus the Islamic State should be unitary. The Imam promulgates the laws of the state and implements them; he also appoints the governors (Ameers). On the other hand, the federal or multi-form state models given the citizens the right to sdopt different legislation’s and elect a governor independent of the Imam. This would eventually to the dismantling of the Islamic political system. The paper also analyzes the results of the unitary system which is manifested in the application of Islamic laws in the state. It emphasizes that Islamic Laws should be applied to every citizen regardless of his religious beliefs, and non-Muslims are exempted only in their cultural and religious affairs, which include food, clothes, marriages, divorce and other such customs.