Qatar National Bank (QNB) offices. Photo: Courtesy.

South Sudan could face international enforcement proceedings after a United States court recognized a $1.02 billion arbitration award in favour of Qatar National Bank (QNB), according to a legal expert.

International arbitration lawyer Santo Daniel Deng says the ruling allows QNB to seek enforcement of the award in jurisdictions where South Sudan or the Bank of South Sudan may have eligible commercial assets.

On July 23, 2026, U.S. District Judge Timothy J. Kelly recognized and enforced the award issued by the International Centre for Settlement of Investment Disputes (ICSID).

The U.S. court decision followed a petition by QNB after South Sudan failed to satisfy the arbitration award, which was issued in May 2024.

The court said its role was limited to recognizing and enforcing the arbitration award and not reviewing the merits of the dispute.

Deng says South Sudan now has several options, including voluntarily paying the amount, negotiating a repayment arrangement, or reaching a settlement with QNB.

He said failure to comply could allow the bank to pursue enforcement against eligible commercial assets belonging to South Sudan or the Bank of South Sudan in countries that recognize ICSID awards.

“The options available to South Sudan are to voluntarily implement the US federal court ruling through the International Centre for Settlement of Investment Disputes (ICSID), or for the South Sudanese government to request that the Qatari bank engage in negotiations,” Deng said.

“The federal court does not enforce the ruling but allows for an amicable settlement with the creditor state, such as rescheduling the debt and interest. If South Sudan refuses to pay, the Qatari bank can pursue the South Sudanese government’s commercial assets,” he explained.

Deng said enforcement would involve seeking recognition of the award in countries that are parties to the ICSID Convention, identifying commercial assets abroad, and applying for attachment or execution under local laws.

He added that delays in payment could increase the amount owed because interest may continue to accumulate while enforcement proceedings are ongoing.

The lawyer said failure to comply does not cancel the award, which remains legally binding under Article 53 of the ICSID Convention.

“Legally, however, the ruling is binding under Article 53 of the ICSID Convention, and member states cannot legally disregard it. In practice, implementation depends on the political will and financial capacity of the state’s executive branch,” he said.

However, Deng noted that some government assets may be protected under the principle of state immunity, including diplomatic property, military assets, and certain sovereign assets.

The dispute comes from a financing agreement signed on April 5, 2018, when QNB provided financing facilities to the Government of South Sudan to restructure existing debts.

After South Sudan defaulted on repayment obligations, QNB initiated arbitration proceedings before ICSID in 2020.

In May 2024, the ICSID tribunal ruled in favour of QNB and ordered South Sudan and the Bank of South Sudan to pay more than one billion U.S. dollars, including outstanding principal, interest, and legal costs.

South Sudan became a member of the ICSID Convention in 2012, meaning it is bound by rules requiring recognition and enforcement of ICSID awards.

Deng said there is no appeal process against an ICSID award through national courts, although parties may seek limited remedies such as interpretation, correction of errors, revision, or annulment under specific conditions.

He said the ordinary 120-day period for seeking annulment has likely expired unless South Sudan filed an application within that timeframe.

If no annulment request was submitted, Deng said the award is now final and binding, leaving enforcement as the main issue before national courts where QNB may seek execution.