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Kuwait's Kharafi group wins USD 930 million from Libya - ASHARQ AL-AWSAT English Archive
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A general view of Kuwait City in this November 10, 2012 file photo. (REUTERS/Stephanie Mcgehee/Files)

A general view of Kuwait City in this November 10, 2012 file photo. (REUTERS/Stephanie Mcgehee/Files)

Kuwait, Reuters—Libya will have to pay Kuwait’s Kharafi group USD 930 million in damages for former leader Muammar Gaddafi’s cancelling of the construction of a vacation resort, Kuwaiti newspapers reported on Monday.

M. A. Kharafi and Sons, a company owned by one of Gulf state’s biggest merchant families, won the award in arbitration proceedings via the Arab League, Al-Rai newspaper said, without giving its source.

Officials at Kharafi, which owns National Industries Group (NIG), National Investments Co., Al Mal Investment Co. and a stake in telecoms, were not immediately available for comment on the report, which was also in Al-Qabas and Al-Jarida newspapers.

The Kuwaiti group signed a contract in 2006 with late leader Gaddafi’s government to build the resort in Tripoli, which would have included hotel accommodation, villas and a shopping mall, the reports said.

The company spent money on feasibility studies, design and management contracts up until 2010, until Libya cancelled the deal, the newspapers said. An uprising in 2011 eventually led to Gaddaffi’s death and his government’s fall late that year.

The Kharafi group claimed it had lost 90 years worth of revenue in the deal and used a joint investment protection agreement from the Arab League for the case, the newspapers said.

The award is the first of its kind in the Arab League under the Joint Investment Protection Agreement between Arab countries.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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