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Leadership in Islam is a trust. Often, it takes the form of an explicit contract or pledge between a leader and his followers that he will try his best to guide them, to protect them and to treat them fairly and with justice. Hence, the focus of leadership in Islam is on integrity and justice. Given the recent emphasis on ethical behavior in the leadership literature (Kouzes and Posner, 1995), an examination of the moral bases of leadership from an Islamic perspective may provide some interesting insights for the field of leadership in general. In this paper, we will examine what leadership is from an Islamic perspective, discuss the moral dimensions of leadership and uncover the characteristics of leaders and followers as suggested by Islam.