Mohammed Al-Amoudi, Ethiopia’s richest man, suffered a major loss in Morocco. On Monday, the International Centre for Settlement of Investment Disputes (ICSID) dismissed the majority of Corral Morocco Holding’s claims against the Moroccan state over the SAMIR refinery.
According to a statement from the Ministry of Economy and Finance, the ICSID awarded Corral only $150 million in compensation, a measly five percent of the $2.7 billion sought by the corporation.
Saudi businessman Mohammed Al Amoudi sought $2.7 billion in compensation following the bankruptcy of SAMIR, Morocco’s lone oil refinery. Mismanagement caused the company to go bankrupt in 2015.
In the statement, Nadia Fettah confirmed the verdict and stated that Morocco is exploring all legal options, including seeking an annulment of the ruling.
Throughout the ICSID hearings, Morocco defended its activities concerning the SAMIR refinery. Minister Fettah emphasized that Morocco has made substantial measures since 2002 to support and improve the refinery’s operations.
Despite these attempts, Corral Morocco Holdings, the refinery’s principal shareholder, was unable to stabilise its financial position.
“Morocco remains committed to upholding its responsibilities and rights towards international partners and organisations, in full compliance with international and bilateral agreements,” Fettah told reporters.
Minister Fettah was confident in Morocco’s position throughout the conflict. “We believe that Morocco has always maintained a fair position vis-à-vis the Corral group,” she said, adding that Morocco has fulfilled all of its contractual duties to the refinery’s principal shareholder.
SAMIR’s financial difficulties date back over a decade, with the refinery owing approximately MAD 40 billion ($4 billion). Of this, 40% is owing to the state through the Customs Administration, with the remaining split between Moroccan and international banks.
Fettah went on to explain that the refinery’s turnaround was hampered by chronic financial and management challenges caused by the principal shareholder’s failure to meet contractual obligations.
The minister emphasized the refinery’s strategic importance, noting that Morocco has constantly committed the resources required to assure its functioning and expansion.
An official from the Ministry of Energy Transition and Sustainable Development, who is presently in Washington, revealed that a new initiative is being considered to revitalize the SAMIR facility in Mohammedia.
Minister Fettah also emphasized Morocco’s commitment to provide a secure environment for businesses. “Morocco offers a business climate that provides undeniable economic opportunities at the crossroads of high-potential markets,” according to her.
She went on to say that Morocco is committed to expanding its energy and petrochemical sectors while maintaining its leadership in renewable and developing energies such as hydrogen.