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Islam supports which system of government and presently, where (in the islamic world) is it being practiced truely?

Answered as per Hanafi Fiqh by Askimam.org
Answer

At present, there is no government which truly practices on Islam.

The presentday government of the Arab states are not truly Islamic states, but their royal system of succession is condoned in Islam in order to avoid further division of the Ummah. However, this law is only applicable to those government free from Kufr elements in their system of government.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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