Construction Industries Faces 376.1 Million Riyal Lawsuit Over Jeddah Four Seasons project
JEDDAH - Construction Industries announced today it is facing a lawsuit filed against its subsidiary, Zamil Air Conditioning and Refrigeration Services Company, seeking 376.1 million Saudi Riyals in compensation. The claim, filed with the commercial court, alleges a breach of contract related to construction services – specifically manufacturing, supplying, and installing components – for the Four Seasons Hotel project on Jeddah’s Corniche.
The lawsuit centers on work completed as a main contractor. While the financial impact remains uncertain, Construction Industries maintains confidence in its subsidiary’s legal position, citing advice confirming the strength of its case under Saudi commercial and civil law. The company has retained external legal counsel to defend against the claim and will provide updates as the case progresses.
Construction Industries stated it is currently unable to determine the potential financial or legal consequences stemming from the lawsuit.However, based on internal documentation, the company believes Zamil Air Conditioning and Refrigeration services Company has a strong defense. Zamil Air Conditioning and refrigeration Services Company is a subsidiary of Zamil Air Conditioning Holding Company.
