Qatar Foundation (QF) has achieved a significant legal victory in an International Chamber of Commerce (ICC) arbitration. The tribunal ruled in QF’s favor in a long-standing hospital construction dispute, awarding approximately QR1 billion (US$275 million) in compensation, with further costs to be determined. This follows an earlier ruling confirming QF’s lawful termination of its contract with a joint venture of construction firms involved in the design and construction of Sidra Medicine.
This decisive outcome marks a major resolution to one of the region’s most protracted construction disagreements. A spokesperson for Qatar Foundation welcomed the ICC’s award, stating it “further vindicates QF’s position in this long-standing dispute and awards substantial compensation to QF. This award underscores QF’s commitment to upholding the highest standards of project management and accountability.” While expressing satisfaction with the ruling, QF emphasized its primary focus remains on the continued success of Sidra Medicine in delivering world-class healthcare to women and children in Qatar and the wider region. They acknowledged the complexity and length of the process, deeming the outcome a “fair resolution that protects the interests of Qatar Foundation and the community we serve.”
Sidra Medicine is an academic healthcare and research institution dedicated to women, children, and young people. It leverages clinical research to provide personalized care, particularly for patients with rare and genetic diseases across Qatar, the Middle East, and Africa.
Qatar Foundation has confirmed that the entirety of the QR1 billion compensation will be reinvested into the Sidra Medicine endowment. This will enable the institution to expand its services to its patients and the broader community.
QF initially contracted the joint venture in 2009 for the design and construction of Sidra Medicine. Due to defaults and delays, QF terminated the contract in 2014 and initiated arbitration proceedings. During the arbitration, the joint venture made two unsuccessful applications to the High Court of England and Wales in 2018 and 2019 regarding partial awards in QF’s favor. This latest ruling by the international body grants QF substantial compensation building upon previous liability awards.
Qatar Foundation reaffirms its commitment to collaborating with international construction businesses on innovative projects that contribute to Qatar’s development and its knowledge-based economy.
