الشركة تعوض صديقي.

Because ش is a sun letter. With sun letters, the ل of الـ is not pronounced; it assimilates to the next consonant.

So:

• written: الشركة
• pronounced: ash-sharika

In fully marked spelling, you might see الشَّرِكَة.

الـ is the Arabic definite article, equivalent to the in English.

So:

• شركة = a company / company
• الشركة = the company

Because شركة ends in ة (called tāʾ marbūṭa), which usually marks a noun as grammatically feminine.

That matters because the verb has to agree with it. Since الشركة is feminine singular, the verb appears in the feminine singular form.

In the imperfect (non-past) tense, تـ can mark several forms, including third-person feminine singular.

Here it means she/it compensates, and it agrees with الشركة, which is grammatically feminine.

So تعوض here means it compensates or it is compensating.

If the subject were a masculine singular noun, you would usually expect يـ instead.

The fully vocalized form is تُعَوِّضُ.

This comes from the verb عوَّضَ in the past tense, meaning to compensate / reimburse / make up for.

In ordinary Arabic writing, short vowels and shadda are often omitted, so you commonly see تعوض instead of تُعَوِّضُ.

Arabic usually does not use a separate helping verb like does in simple present sentences.

So تعوض by itself can express:

• compensates
• does compensate
• sometimes, depending on context, is compensating

Arabic often leaves this to context rather than adding an auxiliary verb.

Because Arabic allows more than one normal word order.

This sentence uses subject–verb–object order:

• الشركة = the company
• تعوض = compensates
• صديقي = my friend

A verb-first version is also possible:

• تعوض الشركة صديقي

Both are grammatical. Starting with الشركة can make the company feel more like the topic or point of focus.

It is made of:

• صديق = friend
• ـي = my

So literally it is friend-my, which Arabic uses to mean my friend.

This is very common in Arabic: possession is often shown by attaching a suffix to the noun.

Because Arabic usually expresses possessive words such as my, your, his with suffixes, not separate independent words.

Examples:

• صديقي = my friend
• صديقك = your friend
• صديقه = his friend

So in this sentence, ـي is doing the job of my.

It is definite.

In Arabic, a noun with a possessive suffix is automatically definite, because it refers to a specific thing or person. So صديقي is not just a friend; it is my friend, a specific friend.

It is in the imperfect tense, often called the non-past.

In context, that can express:

• present: the company compensates my friend
• ongoing present: the company is compensating my friend
• habitual action: the company compensates my friend regularly

The exact English tense depends on context.

In normal Arabic writing, case endings are usually not written. Also, when a noun has the suffix ـي meaning my, the case ending is not obvious in the simple written form.

So even though صديقي is the direct object here, everyday spelling does not make that very visible.

A fully vocalized version of the whole sentence would be:

الشَّرِكَةُ تُعَوِّضُ صَدِيقِي

In ordinary writing, those final short vowels are usually left out.