Al Habtoor intensifies dispute with Lebanon and moves forward with arbitration filing.
Dubai: Dubai-based Al Habtoor Group has retained international law firm White & Case and is preparing to initiate arbitration proceedings in Washington, D.C., signaling a major escalation in its longstanding investment dispute with the Lebanese Republic.
The conglomerate stated that preparations for arbitration are nearly complete, following the conclusion of a six-month cooling-off period required under the bilateral investment treaty between the UAE and Lebanon.
Al Habtoor Group confirmed that no settlement offers or institutional interventions arose during this period that could address what it described as serious breaches and substantial damages to its investments.
Treaty Protections at the Centre
The arbitration will be conducted under the dispute resolution provisions of the UAE-Lebanon Bilateral Investment Treaty, in effect since 1999, which obliges both countries to safeguard foreign investments and ensure fair treatment.
The Group emphasized that all its investments in Lebanon were made in good faith, relying on both local law and international obligations.
“Investor protection, treaty compliance, and adherence to international legal obligations remain core pillars of economic credibility,” the Group said. “Our actions reflect not only the pursuit of corporate recovery but also a principled affirmation of the rule of law and the integrity of foreign investment protections.”
Losses Linked to Financial Collapse
The dispute arises from losses exceeding $1.7 billion, largely due to restrictions imposed by Lebanese authorities and the central bank, Banque du Liban, which blocked the Group from accessing or transferring funds held in local banks.
These measures came amid Lebanon’s ongoing financial crisis, which began in 2019 and saw banks freeze foreign currency deposits while the national currency sharply depreciated.
The Group noted that its losses go beyond frozen deposits, encompassing damage to assets and operations across its hospitality, retail, leisure, and real estate investments built over decades.
Open to Settlement
Although moving forward with arbitration, the company said it remains open to any serious settlement proposals capable of restoring its rights and compensating for the damages incurred.
However, it emphasized that prolonged inaction and institutional paralysis have left it with no choice but to pursue its claims through international legal channels.
“Preparations for arbitration in Washington, D.C. are now at an advanced stage,” the Group added.
