Orascom, Controlled By Egypt's Richest Family, Faces 28 Million Arbitration Award

Orascom Construction and partner OHL were ordered to pay 28.7 million to Qatar Foundation following a prolonged arbitration process.

Londons High Court upheld Qatar Foundations termination of the Sidra contract, rejecting multiple challenges by the joint venture in 2018 and 2019.

Despite legal setbacks, Orascom delivered the Middle East and Africas largest wind farm ahead of schedule, boosting its clean energy capacity to over 900 MW.

Orascom Construction, controlled by Egypts richest family, the Sawiris family, has disclosed an arbitration ruling against a joint venture involving its subsidiary Contrack Cyprus Limited over Qatars landmark Sidra Medicine project, underscoring legal challenges in one of the regions longest-running construction disputes.

The International Chamber of Commerce tribunal found the joint venture, formed with Spains Obrascon Huarte Lain S.A., liable to pay the Qatar Foundation QAR 104.6 million 28.7 million in compensation.

The arbitration award follows Londons High Court judgment affirming that Qatar Foundation lawfully terminated the 1.9 billion 2.6 billion contract for the design and construction of the state-of-the-art Sidra hospital. The tribunals decision resolves most outstanding claims, though interest and legal costs remain under review.

The dispute traces back to 2009, when Qatar Foundation contracted the joint venture to deliver Sidra Medicine. Following significant delays and defaults, the contract was terminated in 2014, prompting arbitration proceedings.

The joint venture subsequently lodged two unsuccessful applications to the High Court of England and Wales in 2018 and 2019, challenging partial awards in Qatar Foundations favor. Contrack, which holds a 45 percent stake in the partnership, is working closely with legal advisers to assess potential next steps as the complex case nears its conclusion.