Texas Gov. Greg Abbott signs law banning Sharia-based business transactions and prohibiting Muslim-only cities or land sales

Texas Gov. Greg Abbott signs law banning Sharia-based business transactions and prohibiting Muslim-only cities or land sales

Texas Governor Greg Abbott has signed into law House Bill 4211, which aims to prevent Sharia-based business transactions and prohibit the creation of Muslim-only cities or land sales in the state. The new law, which took effect on September 1, 2025, was celebrated by Abbott and several state and local leaders at a news conference in McKinney.

The law requires businesses to inform buyers that they are purchasing an interest in a business, not residential property, and prohibits businesses from charging fees or receiving proceeds if an investor sells their share of the business. This legislation was prompted by concerns that the planned Muslim-centric EPIC City development near Dallas may be misleading investors and violating religious freedom laws.

EPIC City, tied to the East Plano Islamic Center, is a proposed neighborhood of over 1,000 homes, a K-12 Islamic school, a mosque, and various community facilities. Abbott and Rep. Candy Noble, the primary author of the bill, argued that the development was structured in a way that required buyers to abide by Sharia law, which is illegal in Texas. The Council on American-Islamic Relations, a national Muslim civil rights group, condemned the law, stating that Sharia is a moral and spiritual framework that does not compete with American law.

The new law does not change EPIC City’s business structure or investor rights, according to Community Capital Partners, the developer of the project. However, the law could make it more difficult for investors to challenge the project in court. The law also does not affect the religious practices of Muslims living in Texas, as it only targets the business structure of the EPIC City development.

The signing of this law follows a series of investigations into the EPIC City project by state and local officials. The developers of EPIC City have maintained that they will only impose Texas and federal laws and that the project is open to people of all backgrounds and faiths.