Advanced Construction Industries is responding to a considerable lawsuit filed against its subsidiary,Al Zamil Air conditioning & Refrigeration Services,by Madad for Growth and Investment Co. The claim, filed November 13, 2025, in the Commercial Court of Jeddah, seeks over 413.75 million Saudi Riyals (approximately $110.3 million USD based on current exchange rates) in damages and legal fees related to work on the Four seasons Hotel project in Jeddah. While the company maintains a strong legal position and anticipates no liability,the dispute underscores the challenges of navigating complex contracts within Saudi Arabia’s rapidly expanding construction sector.
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Advanced Construction Industries, formerly known as Al-Zamil Industrial Investment Co., has announced that its subsidiary, Al Zamil Air Conditioning & Refrigeration Services, is facing a lawsuit filed by Madad for Development and Investment Co. on November 13, 2025. The claim, filed in the Commercial Court of Jeddah, seeks 376.15 million Saudi Riyals in damages, plus an additional 37.6 million Riyals for legal fees.
According to a company statement released on the Saudi stock exchange (Tadawul), the lawsuit alleges that Al Zamil Air Conditioning & Refrigeration Services failed to fulfill obligations related to the construction and supply of equipment for the Four Seasons Hotel project in Jeddah, on the Corniche.
The company stated that, at this stage, it is unable to determine the potential financial impact or legal ramifications of the case. Further updates will be disclosed as they become available.
Based on its review of project documentation, Advanced Construction Industries believes its subsidiary has a strong legal position, citing the Kingdom’s Commercial Courts Law, Civil Transactions Law, and related regulations. The company does not anticipate being held liable as a result of the lawsuit.
To defend against the claim, the company has retained external legal counsel.
Al Zamil Air Conditioning & Refrigeration Services is a subsidiary of Al Zamil Air Conditioners Holding Company, which in turn is owned by Advanced Construction Industries.
The lawsuit comes as the construction sector in Saudi Arabia continues to experience significant growth, driven by the Kingdom’s ambitious Vision 2030 plan. This dispute highlights the potential legal complexities involved in large-scale infrastructure projects.
