Table of Contents
Key Points
- Orascom Construction and partner OHL were ordered to pay $28.7 million to Qatar Foundation following a prolonged arbitration process.
- London’s High Court upheld Qatar Foundation’s 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 Africa’s largest wind farm ahead of schedule, boosting its clean energy capacity to over 900 MW.
Orascom Construction, controlled by Egypt’s richest family, the Sawiris family, has disclosed an arbitration ruling against a joint venture involving its subsidiary Contrack Cyprus Limited over Qatar’s landmark Sidra Medicine project, underscoring legal challenges in one of the region’s longest-running construction disputes.
The International Chamber of Commerce tribunal found the joint venture, formed with Spain’s Obrascon Huarte Lain S.A., liable to pay the Qatar Foundation QAR 104.6 million ($28.7 million) in compensation.
Qatar Sidra Hospital arbitration ruling upheld
The arbitration award follows London’s 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 tribunal’s 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 Foundation’s 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.
Navigating legal challenges while expanding renewable leadership
While addressing the arbitration outcome, Orascom Construction has simultaneously reinforced its position as a regional renewable energy leader.
In June 2025, the Red Sea Wind Energy Consortium—where Orascom holds a 25 percent stake—completed a 650 MW wind farm near Ras Ghareb four months ahead of schedule. The facility is now the largest operational wind project in the Middle East and Africa, supplying clean electricity to over 1 million homes and reducing carbon emissions by 1.5 million tons annually.
The Red Sea project has tripled Orascom’s operational wind capacity in Egypt to over 900 MW. Developed in partnership with ENGIE, Toyota Tsusho Corporation, and Eurus Energy Holdings, the initiative supports Egypt’s decarbonization strategy and underscores the company’s expertise in delivering complex utility-scale infrastructure.
Strategic resilience and long-term growth
Founded by the late Onsi Sawiris, Orascom Construction has evolved into a multinational engineering powerhouse with a diversified portfolio spanning power, water, transportation, and sustainable energy assets. The Sawiris family continues to guide the company’s strategic direction, with Nassef Sawiris—Egypt’s richest individual—holding a significant stake.
Despite the arbitration ruling, Orascom remains firmly focused on regional expansion and innovation in critical infrastructure. Its growing renewable energy footprint and track record of executing transformative projects reinforce its role as a key player shaping sustainable development across the Middle East and Africa.
By balancing complex legal proceedings with ambitious investment in clean energy, Orascom Construction demonstrates resilience and a clear commitment to infrastructure that drives long-term economic and environmental impact.
