Qatar Foundation Wins $275M in Hospital Construction Dispute

Qatar Foundation (QF) has won a major international arbitration case, securing approximately $275 million (QAR 1 billion) in compensation following a long-running dispute over the construction of Sidra Medicine, a world-class hospital in Doha.

The award, granted by the International Chamber of Commerce (ICC) arbitration tribunal based in Paris, marks the culmination of a nearly two-decade legal battle between QF and a joint venture comprising Spain’s Obrascon Huarte Lain (OHL) and Contrack Cyprus Ltd, a subsidiary of Egypt’s Orascom Construction.

The tribunal ruled decisively in QF’s favor, affirming the foundation’s right to terminate the construction contract and granting the substantial financial award. An additional decision on legal costs is expected to follow.

Background: A Long-Running Dispute

QF originally awarded the contract to the OHL-Contrack JV in 2009 to design and build the Sidra Medicine hospital. However, persistent delays and contractual defaults led QF to terminate the agreement in 2014. Arbitration proceedings began soon after, with the joint venture challenging partial rulings in QF’s favor through the High Court of England and Wales in 2018 and 2019 — both attempts were dismissed.

A previous ICC ruling had already established that QF had lawfully terminated the contract. This latest ruling settles the financial outcome, awarding QF $275 million (QAR 1 billion), which will be fully reinvested into the Sidra Medicine endowment.

Reinforcing QF’s Commitment to Excellence

A Qatar Foundation spokesperson, speaking to local media, expressed satisfaction with the outcome:

“QF welcomes the award issued by the ICC, which further vindicates QF's position in this long-standing dispute and awards substantial compensation to QF”

The spokesperson added:

“This award underscores QF's commitment to upholding the highest standards of project management and accountability. While we are pleased with the outcome, our primary focus is on ensuring the continued success of Sidra Medicine in providing world-class healthcare to women and children in Qatar and the region.”

Expanding Healthcare Services

Sidra Medicine is a state-of-the-art academic healthcare and research center dedicated to the treatment of women, children, and young people. It is known for leveraging advanced clinical research to provide personalized care, especially for patients with rare and genetic conditions across Qatar, the Middle East, and Africa.

QF has confirmed that the full amount awarded will be reinvested into the hospital’s endowment to support expansion of services, further enhancing Sidra Medicine’s capacity to deliver cutting-edge care.

This ruling brings closure to a significant chapter in Qatar Foundation’s infrastructure and healthcare development story. It also reinforces the strength of international legal mechanisms in upholding the rights of contracting parties and ensuring accountability in large-scale construction projects.

Orascom Construction has also publicly acknowledged the ruling, noting it follows prior decisions establishing liability.

As QF redirects the awarded funds toward enhancing healthcare delivery, the foundation continues to set benchmarks in institutional governance, transparency, and regional impact.