I don’t know much about Islam.  I have a few Muslim friends.

What does it mean to be someone’s "friend"?  Does it mean that we try to make them like us?  Does it mean that we fear that they will make us like them?  Can one be "friends" with those that he believes are espousing a less truthful image of God?  Does this not imply a hierarchical relationship?  What kind of "friendship" is that?

Instead of "friends," I think it would be more valuable to see Muslims as "neighbors." 

On covenanting with the neighbor, I would highly recommend Walter Brueggemann’s The Covenanted Self, especially chapter one that discusses the convenanted relationship one has with self, neighbor and God.

At the end of that section, Brueggemann suggests that convenanting as neighbors includes:

1) Solidarity at the daily extremes of joy and sorrow…with and for and on behalf of the neighbor

2) Building up, which means recasting what is permitted, the delicate dialective of freedom and yielding for the sake of the whole

3) Truthful love and loving truthfulness, which reimages us as creatures of the gospel. 

Brueggemann says that

Convenanting is to know when to do what.  In parallel fashion, with the neighbor it is right to assert one’s freedom, and it is right to yield one’s freedom for the neighbor.  The demanding work of covenanting is to know when to do what, and that requires a thoughful, disciplined practice of negotiation.