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Al Amoudi’s legal battle: Morocco stands firm against financial pressure

Saturday 05 - 11:45

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Mohammed Hussein Al Amoudi, the Saudi billionaire and former owner of Morocco's Samir refinery, is currently pursuing the enforcement of an award from the International Centre for Settlement of Investment Disputes (ICSID) against Morocco. This effort aims to resolve a prolonged legal dispute with the Kingdom. However, behind this legal maneuvering lies what some critics describe as a cynical exploitation of international trade mechanisms, following a significant failure in managing the country’s largest refinery.

In July 2024, ICSID awarded Corral Morocco Holding—an Al Amoudi subsidiary—compensation of $150 million. Although this amount represents a mere 6% of the $2.7 billion initially sought, the Saudi magnate has intensified his efforts to expedite the award's enforcement. This strategy appears to seek advantages from an international legal system, despite his management of Samir having severely impacted the Moroccan economy.

The controversy dates back to 1997 when the Moroccan government privatized the Samir refinery. At that time, Corral Morocco Holding committed to substantial investments for modernizing the facility, including promises of 5 to 6 billion dirhams for constructing a hydrogen cracking unit in Mohammedia and 1 billion dirhams for the Sidi Kacem refinery. These ambitious pledges, however, were never fulfilled. Moreover, Al Amoudi's administration led to a financial crisis, accumulating debts exceeding 45 billion dirhams (approximately $4.5 billion), ultimately resulting in the company's bankruptcy in 2016.

Rather than taking responsibility for these failures, Al Amoudi opted for arbitration and complex legal proceedings, stalling any efforts to rescue the refinery. His actions have hindered potential investments and frozen viable solutions.

The Moroccan government has consistently rejected Al Amoudi’s claims, asserting that the downfall of Samir is a direct result of his mismanagement rather than state intervention. In December 2024, Rabat succeeded in suspending the ICSID award pending the outcome of an annulment process currently underway.

This steadfast position reflects Morocco's commitment to safeguarding its economic sovereignty and resisting pressure from powerful financial actors who exploit international law loopholes for unwarranted compensation.

The Samir dispute transcends mere commercial conflict; it poses a strategic challenge to Morocco's ability to protect its interests against unscrupulous investors. The Samir case exemplifies the double standards that sometimes pervade international trade, where some parties manipulate international legislation to gain unjust financial advantages.

Contrary to the image he seeks to project, Al Amoudi is not a wronged investor but rather an entrepreneur who failed to meet his commitments. He now aims to shift the consequences of his mismanagement onto an entire nation. While Morocco strives to rescue this strategic site and ensure its energy security, the Saudi billionaire continues to rely on international arbitration mechanisms to impose his agenda.

Yet, Morocco remains resolute, refusing to yield to any financial coercion. In response to Al Amoudi’s repeated maneuvers, the Kingdom mounts a robust defense of its rights and institutions. One thing is clear: the responsibility for the collapse of Samir lies primarily with the individual who was supposed to transform it into an industrial development lever and who, through questionable practices, has turned it into a symbol of economic and legal mismanagement.