Twareat challenges ruling in case against SABIC

The appeal challenges the ruling issued in the case against Saudi Basic Industries Corp. (SABIC), in which the preliminary circuit ruled that it lacked subject-matter jurisdiction to hear the case.

The company said in a statement to Tadawul that it will disclose any further material developments on time.

According to data available with Argaam, Twareat filed a lawsuit against SABIC before the Fourth Circuit of the Commercial Court in Riyadh. The lawsuit sought SAR 34.51 million, including VAT, as compensation for financial issues related to unmet contract obligations from Dec. 1, 2019, to Nov. 30, 2024.

The company explained that the lawsuit relates to an agreement for operating eight medical clinics in SABIC’s facilities and subsidiaries. The agreement stipulated that Twareat will conduct a specific number of medical examinations annually for the employees of SABIC and its affiliates, provided that SABIC must compensate Twareat for any financial margins if the number of conducted examinations falls below the minimum threshold agreed upon in the contract.

The company stated that on November 26, it received official notification from the external lawyer appointed to the case, stating that after closing arguments and deliberations, the court ruled that the commercial courts lacked subject-matter jurisdiction to hear the case.