Statehood sovereignty is based on Westphalian principles and in practice since 1648. It has three dimensions: juridical, empirical and popular. Islamic concept of statehood is different from the Westphalian one. However, no matter whatever the differences between the two, the Islamic concept is not against the three categories of western statehood. And can be implemented by Muslim states under Islamic principles if followed in true sense. Quran does not make it obligatory to have an Islamic state, however, the ultimate source of sovereignty in Islam is Allah and prophetic traditions. No state is sovereign in absolute sense. The Muslim states in large lack the sovereign statehood principles based on Islamic and western concepts. They fall in the second and third world categories.