The dispute centers on a 2017 blockade of Qatar by Saudi Arabia, Egypt, the United Arab Emirates, and Bahrain. Qatar Pharma alleges these measures breached an Organisation of the Islamic Conference Agreement protecting its pharmaceutical investments, occurring before the company could complete a planned initial public offering.
Qatar Pharma initiated arbitration after the blockade negatively impacted its business, ultimately securing a favorable award from a UK tribunal in October 2024.
Saudi Arabia promptly challenged the award in the Commercial Court of the United Kingdom, with a hearing scheduled for April 28-30, 2026.
Qatar Pharma subsequently filed to confirm the award in New York federal court, prompting Saudi Arabia to remove the case and move for a stay of enforcement.
Judge Oetken granted the motion, finding that limited delay will result from awaiting a decision in the Set-Aside Proceeding and deferring a decision may avoid inconsistent results.
The court emphasized that the UK courts, as the seat of arbitration, constitute a primary jurisdiction under the New York Convention and may apply domestic law in addition to the Convention's grounds for setting aside an award. By contrast, the New York court is a court of secondary jurisdiction limited to the enumerated grounds in Article V.
Oetken also declined to order Saudi Arabia to post security, noting that ordering such a requirement would be premature as the court had not yet determined whether it has jurisdiction over the dispute. Additionally, courts in the Second Circuit generally do not require foreign sovereigns to post security because they are presumed solvent and likely to comply with valid court orders.
The proceeding on the Petition to confirm the Award is stayed. Throughout the pendency of the stay, parties must provide periodic updates at least every 90 days regarding the status of the Set-Aside Proceeding in the English Commercial Court and notify the court of its ruling within seven days of issuance.