It should be quite clear that a Muslim is required to preserve his religion and creed anywhere he lives or resides in. A Muslim is not required to leave his birthplace because such a country does not apply the Islamic Shari`ah. If one looked to the whole world, they would find no country that applies the Islamic Shari`ah fully and in the proper and correct way.
Hence, it is our duty to fear Allah according to the ethics and morals of Islam. Also, we have to preserve our religion and identity as a Muslim irrespective of the country we reside in.
Having stated the above, it becomes clear that there is nothing wrong in living in such a country as long as we feel safe and secure regarding ourselves, religion, children and property. May Allah reward and protect us against all evils.