Kuwait – Agility Public Warehousing Company KSCP announced today that an international arbitration tribunal constituted under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has ruled that it has jurisdiction to hear some of the most relevant claims filed by Agility against the Republic of Iraq. As a result, the tribunal will proceed to consider substantively certain of Agility’s claims on the merits.
Agility alleges that the Iraqi government denied Agility and its subsidiaries the ability to challenge the improper decision of the Communications & Media Commission (CMC) to annul its investment in Korek Telecom and that the government then illegally implemented the CMC’s decision by ordering the transfer of shares acquired by Agility and its co-investors back to the original Iraqi shareholders in March 2019 without returning Agility’s original investment.
“We are pleased with the ICSID tribunal’s decision,” said Tarek Sultan, Vice Chairman and CEO. “The ruling upholds the protections to which Agility is entitled and acknowledges that the Republic of Iraq cannot evade its treaty obligations and scrutiny for its violations of international law.”
In February 2017, the Agility Group filed a request for arbitration against the Republic of Iraq pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States and the Agreement between the Government of the State of Kuwait and the Government of the Republic of Iraq for Reciprocal Promotion and Protection of Investments.
Over the years, Agility invested over US$380 million and significant management and technical expertise and know how to develop Korek Telecom into a successful business.