A court in Vienna has caused a storm after confirming that a financial ruling based on Islamic law, or Sharia, is legally valid in Austria.

Critics say the judgment opens the door to “parallel justice” and undermines the country’s legal system.

The case began when two Muslim men agreed that any disputes between them would be settled by an Islamic arbitration panel using Sharia rules.

When a disagreement arose, the tribunal ordered one of them to pay €320,000. He refused, arguing that Sharia is open to different interpretations and goes against Austria’s core values.

But the Vienna Regional Court dismissed his appeal. Judges said Austrian law allows people to choose arbitration systems for financial and property disputes, as long as the result does not break Austria’s “fundamental legal values.”

The court added that it was not its role to examine whether Sharia itself was fair, but only whether the outcome contradicted Austrian law.

The ruling has sparked fierce criticism. Manfred Haimbuchner, deputy governor of Upper Austria and a leading figure in the right-wing Freedom Party (FPÖ), warned:

Sharia is incompatible with our basic values. This is another example of our legal system being powerless against the creeping influence of Islam.

He pointed out that Sharia includes punishments such as stoning and allows the beating of women, saying: “It can never be reconciled with our understanding of law.”

Another FPÖ politician, Andreas Bors, called the ruling “absolute madness” and said:

Austria is a Christian and Western state under the rule of law. That rule of law must never be undermined by parallel justice or religious legal systems such as Sharia.

Even the Turkish Cultural Association (TKG) expressed concern. In a statement, it said the ruling violated EU treaties, and it pointed to a 2003 decision by the European Court of Human Rights, which found that Sharia is incompatible with human rights law.

The group argued the Vienna decision could lead to “a strong interference in today’s secular economy, and tomorrow in rules for trade, sales, and services.”

Commentators in Austrian media have warned that the case could set a dangerous precedent.

The conservative outlet Exxpress called it a “grotesque” symptom of the EU’s failed migration policies, and said the judgment sends the wrong signal about integration. “Austria is not an Islamic state,” the outlet wrote, warning that allowing Sharia in contracts undermines trust in democracy and the rule of law.

Although the court said its decision only applies to property disputes, opponents fear it will encourage the wider use of Sharia-based agreements in Austria.