Dubai-based conglomerate Al Habtoor Group has issued a formal warning to the Lebanese government, signaling imminent legal proceedings over substantial financial losses exceeding $1.7 billion (Dh6.24 billion). The multinational corporation alleges systematic violations of bilateral investment agreements through restrictive measures imposed by Lebanese authorities and the central bank, Banque du Liban.
The dispute centers on the Group’s diversified portfolio across Lebanon’s hospitality, retail, leisure, real estate, and banking sectors. According to official statements, these investments have suffered severe deterioration due to capital control measures preventing access to lawfully deposited funds in Lebanese financial institutions. These financial restrictions, exacerbated by Lebanon’s prolonged political and economic crises, have created an unsustainable operational environment for foreign investors.
Al Habtoor Group emphasized having exhausted all diplomatic channels and good-faith negotiation attempts since formally notifying Lebanon of the investment dispute in January 2024. The six-month cooling-off period mandated under UAE-Lebanon bilateral investment treaties concluded without resolution, despite the Group’s engagement with relevant authorities.
The conglomerate now asserts that international legal action represents the only remaining recourse to enforce its rights under binding international agreements. These treaties obligate Lebanon to ensure protection, fair treatment, and effective remedies for foreign investors. While maintaining openness to constructive solutions, the Group stated it cannot continue absorbing losses resulting from what it characterizes as systemic failure and prolonged governmental inaction.
This development follows Chairman Khalaf Al Habtoor’s January 2025 announcement canceling all Lebanese investment projects and divesting existing properties, citing security concerns including personal threats received in 2024. The case highlights worsening investor confidence in Lebanon’s ability to stabilize its financial systems and protect foreign investments amid ongoing economic collapse.