An Austrian court has upheld the use of Islamic Sharia law in private arbitration for civil disputes when both parties consent.
The Vienna Regional Court for Civil Matters confirmed that such arbitration is permissible under Austrian law if it does not violate fundamental public policy.
This decision stems from a recent case involving a financial disagreement between two individuals.
The dispute arose from a contract signed by two men that specified arbitration based on Islamic principles of Ahlus-Sunnah wal-Jamaah, which refers to the Sunni Islamic tradition.
Following a conflict, the arbitration tribunal ruled against one party, ordering him to pay €320,000. The losing party then challenged the award in the Vienna court, claiming the application of Sharia was arbitrary due to varying Islamic scholarly interpretations and conflicts with Austrian legal values.
The court rejected the challenge, stating it could not verify the exact use of Islamic rules but found the outcome did not contradict Austrian fundamentals.
It emphasized that parties can agree to apply foreign legal provisions, including Sharia, in arbitration for property claims.
The ruling clarifies that this applies only to civil matters like debts or contracts, not broader areas such as criminal or family law.
The decision has drawn criticism from politicians in the right-wing Freedom Party of Austria (FPÖ). FPÖ MP Michael Schilchegger stated that the ruling opens the door for political Islam and promotes parallel societies.
Opposition extends beyond the FPÖ, with the Turkish Cultural Community in Austria (TKG) protesting the recognition of Sharia elements.
TKG General Secretary Melissa Günes warned of potential expansions into economic regulations and highlighted a 2003 European Court of Human Rights (ECHR) ruling that deemed Sharia incompatible with democratic principles.
The ECHR case, Refah Partisi v. Turkey, concluded that introducing parallel legal systems based on Sharia violates European Convention values.
In response to the backlash, the Austrian People’s Party (ÖVP) announced plans for measures to address concerns raised by the ruling.
ÖVP Secretary General Nico Marchetti indicated steps would be taken following the confirmation of the Sharia-based arbitration award.
Austrian arbitration law generally allows parties to select governing rules, including foreign laws, provided they align with public order.
Similar provisions exist in other European countries, where private arbitration tribunals handle disputes outside state courts. However, this case has intensified debates on the limits of such agreements in multicultural societies.
