Dubai conglomerate takes dispute to ICSID after failed talks over Lebanon investments.
Dubai: Al Habtoor Group has launched international arbitration proceedings against the Lebanon, escalating a long-running dispute over its investments in the country.
The UAE conglomerate said late last night that it had formally filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes in Washington, D.C., and that Lebanon had been notified in accordance with international procedures.
The move follows what Al Habtoor Group described as a prolonged period of “good-faith efforts” to resolve the dispute amicably, which ultimately failed to produce any meaningful outcome.
In a statement, Al Habtoor Group said its investments in Lebanon were made based on the country’s legal and regulatory framework, as well as protections provided under bilateral investment treaties.
However, the group said it suffered significant losses due to measures taken by the Lebanese government and its alleged failure to protect those investments.
“The commencement of these proceedings reflects a clear and deliberate decision to pursue all available legal remedies to protect the Group’s rights,” Al Habtoor Group said, adding that it would seek full redress through international legal channels.
The case will be handled by the International Centre for Settlement of Investment Disputes, a leading global arbitration institution that resolves disputes between investors and sovereign states, often under bilateral investment treaties.
Next proceedings
Such cases typically involve claims of expropriation, unfair treatment, or a failure to provide adequate legal protection for foreign investors.
Al Habtoor Group, founded by Khalaf Ahmad Al Habtoor, is one of the UAE’s largest conglomerates, with businesses spanning hospitality, real estate, automotive, and education. The company has maintained a longstanding presence in Lebanon, particularly in the hospitality sector.
While the group did not disclose the exact amount of damages being sought, the arbitration marks a significant escalation and could have wider implications for investor confidence in Lebanon, which continues to face a prolonged economic crisis.
Reaffirming its position, the group said the proceedings reflect a deliberate decision to pursue all available legal remedies and seek full redress through the appropriate international legal channels. It added that it would move forward with the arbitration process “firmly and with discipline,” signalling a clear shift from negotiations to formal legal action.
Since March 2, Lebanon has been engulfed in renewed fighting between Israel and militant group Hezbollah, marking a major escalation of a conflict that first intensified in late 2023 and has become part of the wider Middle East crisis.
The violence has killed more than 2,000 people — including militants and civilians — and displaced over one million residents, roughly a fifth of the population, triggering a severe humanitarian crisis.
