dar-al-islam and dar-al-harb are not the terms used initially, they were later development.
Basic convanant is same as previous nations, but in Islam definition maybe different than yours but here it is:
Allah mentions, "Then Adam learnt certain words (to pray with) from his Lord so Allah accepted his repentance. No doubt he is the Most -Relenting, the very merciful. We said "Go down from here, all of you. Then should some guidance come to you from me, those who follow my guidance shall have no fear, nor shall they grieve. As for those who disbelieve, and deny our signs, they are the people of fire; they shall be there forever" (Al-Baqarah 37-39)
It is not Al-Birr (piety, righteousness, and obedience to Allâh, etc.) that you turn your faces towards east and (or) west (in prayers); but Al-Birr is (the quality of) the one who believes in Allâh, the Last Day, the Angels, the Book, the Prophets and gives his wealth, in spite of love for it, to the kinsfolk, to the orphans, and to Al-Masâkîn (the poor), and to the wayfarer, and to those who ask, and to set slaves free, performs As-Salât, and gives the Zakât, and keep their word whenever they make a promise, and who are patient in extreme poverty and ailment (disease) and at the time of persecution, hardship, and war. Such are the people of the truth and they are Al-Muttaqûn (the pious).
--- Sat Feb 25, 2012 5:03 pm ---
Short text can put things out context and maybe out of scope, here is a full lecture on the topic:
Islam teaches that each individual has to establish a link with God and pray to Him alone etc.
There is no equivalent of the Biblical covenant between God and the Israelites to my knowledge - but rather a series of reminders to believers in God what their obligations are in terms of worship and how they behave towards fellow creations of God. There is no promise of divine protection for the Ummah as such, but there are on the contrary explicity hadith about how the Ummah will actually stray from the straight path over time... I'm thinking of the prophecy that there will be a period of Caliphs, followed by Kings and then there will be dissaray.
The prophecies also say that there will be dissention amongs the Muslims - and they will commit all the crimes that the Jewish nations committed - they will resemble them like two shoes in a pair resemble each other (IIRC).
Happy to be corrected if I've misunderstood (I haven't watched the link above, internet connection is a bit slow where I am currently).