Dubai’s prominent Al Habtoor Group has formally engaged international law firm White & Case to pursue arbitration proceedings against the Lebanese government in Washington, D.C. The move marks a significant escalation in a protracted investment dispute between the Emirati conglomerate and the Middle Eastern nation.
The arbitration, filed under the dispute resolution mechanisms outlined in the Bilateral Investment Treaty between the United Arab Emirates and Lebanon, follows six months of alleged inaction by Lebanese authorities to address what Al Habtoor characterizes as ‘severe breaches’ and substantial financial damages.
White & Case brings considerable expertise to the case, having been ranked as the top global law firm for shareholder activism in Bloomberg’s FY 2025 Global Activism League Tables. The firm specializes in sovereign disputes and treaty-based investment arbitration, positioning it as a strategic choice for this complex international legal battle.
The conflict originated in January 2026 when the diversified Gulf conglomerate, chaired by billionaire Khalaf Al Habtoor, threatened legal action against Lebanon. The group subsequently announced the complete cessation of its operations in Lebanon and termination of all staff, citing accumulated losses exceeding Dh6.24 billion ($1.7 billion).
In a January statement, Al Habtoor Group detailed its challenges, citing ‘prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions’ as contributing factors to its decision. The conglomerate emphasized that despite years of regional conflicts and crises, it had maintained operations as a ‘humanitarian responsibility’ while honoring employee obligations.
The group’s investments in Lebanon, which began with the 2001 opening of the 180-room Metropolitan Palace Hotel in central Beirut, were described as having been made ‘in good faith’ and in reliance on Lebanese law and international obligations. In January 2025, Al Habtoor had previously announced on social media platform X his intention to sell all Lebanese properties due to security concerns, characterizing the decision as ‘painful’.
Al Habtoor Group maintains extensive global operations across hospitality, automotive, real estate, education, and publishing sectors, with international holdings in the United Kingdom, Hungary, Austria, and the United States alongside its UAE presence.