Recent developments in the ongoing arbitration between Morocco and Saudi businessman Mohammed Al Amoudi, representing the Coral Group, have revealed that Morocco has officially rejected compensation demands totaling $2.7 billion, equating to approximately MAD 27 billion.
These demands were submitted on behalf of SAMIR, the Moroccan oil refining company currently undergoing judicial liquidation in the Commercial Court in Casablanca.
According to Hespress sources, the rejection came during the latest arbitration sessions held by the International Center for Settlement of Investment Disputes (ICSID) in Washington. This decision marks a pivotal moment, opening the door to potential litigation between the involved parties.
The arbitration process has been contentious, with Morocco accusing Al Amoudi of engaging in “blackmail and bullying tactics.”
Moroccan officials have expressed concerns over what they deem to be illegal maneuvers by Al Amoudi, aimed at obstructing the liquidation process of SAMIR.
They allege that the Saudi businessman has promoted unrealistic recovery offers for the refinery, allegedly from unknown entities, and used these offers in bad faith to inflate compensation claims.
SAMIR, which ceased operations in 2016, has been a focal point of Moroccan efforts to sustain its productivity since 2002.
The Moroccan government provided significant resources and tax incentives to support SAMIR, viewing the refinery as strategically important for foreign investments and national development strategies. Despite SAMIR’s financial instability, Moroccan authorities assert their good faith efforts to fortify the refinery’s industrial infrastructure over the years.
In response to accusations from the Moroccan side, Al Amoudi, whose group is based in Sweden, has been accused of exploiting Morocco’s support for SAMIR to accelerate the company’s bankruptcy.
Allegations include failure to fulfill commitments to modernize the refinery and inject necessary capital, opting instead to maneuver and pressure Moroccan authorities.
The Commercial Court in Casablanca has already taken steps against SAMIR’s former management, including Mohamed Hussein Amoudi and Jamal Baamer, holding them responsible for the refinery’s financial state.
The court approved extending the judicial liquidation process to include these former executives, allowing for the seizure and auction of their assets.
The dispute underscores broader tensions between foreign investors and national interests in Morocco’s industrial sector, highlighting challenges in managing and protecting strategic assets amid legal and financial uncertainties.
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