BEIRUT — Al Habtoor Group has escalated its legal dispute with the Lebanese government by appointing international law firm White & Case to prepare formal arbitration proceedings in Washington, D.C.
The Dubai-based conglomerate claims it incurred a $1.7 billion investment loss in Lebanon after authorities restricted access to funds legally deposited in local banks.
The decision follows the expiration of a six-month cooling-off period under the UAE-Lebanon bilateral investment treaty. During that period, both sides held discussions but failed to reach a settlement.
What Triggered the $1.7 Billion Investment Loss
According to Al Habtoor Group, the dispute centers on measures that prevented the company from accessing and transferring its funds. The group attributes its losses to:
Restrictions imposed by Lebanese authorities and Banque du Liban
Inability to transfer legally deposited funds abroad
Ongoing political and economic instability
Lack of corrective institutional action
The company states that these factors caused severe and sustained damage to its investments.
End of a 25-Year Presence in Lebanon
Al Habtoor Group, chaired by Khalaf Al Habtoor, has invested in Lebanon for more than two decades across hospitality, real estate, retail, leisure, and related financial activities.
In January, the group warned it would pursue Lebanon arbitration after negotiations failed to produce tangible results. It later announced the closure of its Lebanese operations and the termination of employee contracts, ending a 25-year presence in the country.
Lebanon’s Financial Crisis at the Core
Lebanon’s financial crisis, which began in 2019, introduced informal capital controls and restrictions on fund transfers. These measures severely affected foreign investors and corporate depositors.
Al Habtoor Group maintains that its investments were made in compliance with Lebanese law and international treaty obligations.
Despite initiating Lebanon arbitration proceedings, the company states it remains open to a serious and structured settlement initiative that would restore its rights and compensate for the assessed damages.
