Emmerson PLC arbitration claim against Morocco advances after tribunal rejects bifurcation request

Traders Union
All News
Financial Institutions
Emmerson arbitration advances

Highlights

On 17 July 2026, the tribunal rejected Morocco's application to bifurcate jurisdictional objections, consolidating them with the merits phase of Emmerson PLC's arbitration.
Emmerson PLC and subsidiaries seek U.S.$1.215 billion compensation in ICSID arbitration against Morocco for alleged breaches under the UK-Morocco bilateral investment treaty.
The timing for the hearing, which will address both jurisdictional objections and case merits, remains unconfirmed as Emmerson awaits a set timetable.

Tribunal ruling shapes arbitration timeline

As reported by London Stock Exchange, citing London Stock Exchange Regulatory News Service, the tribunal issued a decision on 17 July 2026 rejecting Morocco's application to bifurcate certain jurisdictional objections into a separate preliminary phase.

Morocco had applied in May 2026 for those objections to be heard before any assessment of the claimants' substantive case. The claimants opposed the request, and the tribunal held a hearing on 19 June 2026 to hear oral submissions on whether the bifurcation application should be granted.

With the application rejected, the tribunal is set to address Morocco's objections at the same time as it examines the merits of the case. Emmerson said the timing of the next steps, including the hearing covering both jurisdiction and merits, is still to be confirmed and that it will provide an update once a timetable is set.

Claim seeks U.S.$1.215 billion in compensation

Emmerson's direct and indirect subsidiaries, Khemisset UK Ltd. and Potasse de Khemisset S.A., filed a request for arbitration with the International Centre for Settlement of Investment Disputes on 30 April 2025, and the ICSID Secretary-General registered that request on 23 May 2025.

The claimants submitted their memorial in the arbitration on 27 March 2026 together with documentary, witness and expert evidence. They are seeking compensation of U.S.$1.215 billion, net of local taxes and including interest, for alleged losses and damage linked to what they describe as Morocco's breaches of its obligations under the UK-Morocco bilateral investment treaty.

According to the company, those claims include alleged expropriation of the project under Article 6(1) of the treaty, as well as alleged failures to provide fair and equitable treatment, full protection and security, and to avoid discriminatory measures under Article 2(2). Emmerson also said there can be no certainty over the outcome of the treaty claims.

Our earlier report on Jingye’s compensation demand over the UK’s nationalisation of British Steel explained that the Beijing-based group had launched formal consultations under bilateral investment agreements, arguing the near-zero offer breached international law and could lead to international arbitration. We also noted the UK’s plan to set up a compensation scheme with independent valuation and appeal rights, alongside warnings that the dispute could affect investor confidence and cross-border investment sentiment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.