The issue with sharia-based arbitration is not about religion or equality or separation of church and state. The big question is: why are people who are not qualified to interpret law allowed to make legally binding arbitration rulings?

Everyone who wants to do arbitration should have to study enough law so they are qualified to interpret law. This would ensure that all their decisions are in accordance with federal, provincial and local laws. They can then make decisions in accordance with whatever other rules or standards they want, just as long as the standards are fully disclosed to all parties involved, and the decisions do not violate any existing laws.

If potential arbitrators do not want to go to the trouble of studying law, they can be free to become mediators instead, so they can still mediate disputes, but their decisions would not be legally binding.