Dubai’s Al Habtoor Group warns Lebanon of legal action over Dh6-billion losses
The Dubai-based Al Habtoor Group on Monday warned of legal action against the Lebanese government and a bank for violating the agreements, which the group said led to losses of over $1.7 billion (Dh6.24 billion).The group has invested in various sectors of Lebanon including hospitality, retail, leisure, real estate, and banking-related activities.“Over recent years, these investments have suffered severe and sustained harm as a direct result of measures and restrictions imposed by Lebanese authorities and the Banque du Liban, which have prevented the Group from freely accessing and transferring lawfully deposited funds held in Lebanese banks. Stay up to date with the latest news. Follow KT on WhatsApp Channels."These measures, compounded by the prolonged political, economic, financial, and social crises facing the Lebanese Republic, and by Lebanon’s failure to ensure a stable and secure environment for operations and investments, have caused substantial and ongoing damages and losses to the Group’s assets and properties in Lebanon, exceeding $1.7 billion,” said the statement.The group noted that it “has exhausted all reasonable and good-faith efforts to resolve this dispute amicably, including formal engagement with the relevant authorities and allowing sufficient time for corrective action, without any meaningful response or effective remediation.”Therefore, Al Habtoor stated that there is “no other alternative” but to “proceed to take all legal measures necessary to protect and enforce its rights under applicable international agreements and legal frameworks.”However, it stressed that it is open to constructive solutions that restore its rights. But it also warned that it “cannot and will not continue to absorb additional losses arising from prolonged inaction, negligence and systemic failure.”In January 2025, Emirati investor Khalaf Al Habtoor, Founder and Chairman of Al Habtoor Group, said he made a "painful" decision to cancel all investment projects in Lebanon and sell his all current properties due to challenges in the Arab country.Khalaf Al Habtoor said earlier that the country was still not safe and that he had been threatened with being "slaughtered and killed" in 2024.Al Habtoor Group formally notified the Lebanese Government of the existence of an investment dispute in January 2024 to activate the six-month cooling-off period prescribed under the bilateral treaty, with the express objective of reaching an amicable resolution and concluding a settlement.It added that it is the responsibility of the Lebanese government to safeguard these investments and to compensate Al Habtoor Group for the losses sustained.The group elaborated that it’s “a legal obligation (for the Lebanese government) arising under binding bilateral agreements and international investment treaties concluded with the UAE, which impose clear duties on Lebanon to ensure protection, fair treatment, and effective remedies for investors.”UAE billionaire says Arab countries shouldn’t rely on the West aloneDubai businessman decries 'language of war', says world does not need 'new battles'
The Dubai-based Al Habtoor Group on Monday warned of legal action against the Lebanese government and a bank for violating the agreements, which the group said led to losses of over $1.7 billion (Dh6.24 billion).
The group has invested in various sectors of Lebanon including hospitality, retail, leisure, real estate, and banking-related activities.
“Over recent years, these investments have suffered severe and sustained harm as a direct result of measures and restrictions imposed by Lebanese authorities and the Banque du Liban, which have prevented the Group from freely accessing and transferring lawfully deposited funds held in Lebanese banks.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
"These measures, compounded by the prolonged political, economic, financial, and social crises facing the Lebanese Republic, and by Lebanon’s failure to ensure a stable and secure environment for operations and investments, have caused substantial and ongoing damages and losses to the Group’s assets and properties in Lebanon, exceeding $1.7 billion,” said the statement.
The group noted that it “has exhausted all reasonable and good-faith efforts to resolve this dispute amicably, including formal engagement with the relevant authorities and allowing sufficient time for corrective action, without any meaningful response or effective remediation.”
Therefore, Al Habtoor stated that there is “no other alternative” but to “proceed to take all legal measures necessary to protect and enforce its rights under applicable international agreements and legal frameworks.”
However, it stressed that it is open to constructive solutions that restore its rights. But it also warned that it “cannot and will not continue to absorb additional losses arising from prolonged inaction, negligence and systemic failure.”
In January 2025, Emirati investor Khalaf Al Habtoor, Founder and Chairman of Al Habtoor Group, said he made a "painful" decision to cancel all investment projects in Lebanon and sell his all current properties due to challenges in the Arab country.
Khalaf Al Habtoor said earlier that the country was still not safe and that he had been threatened with being "slaughtered and killed" in 2024.
Al Habtoor Group formally notified the Lebanese Government of the existence of an investment dispute in January 2024 to activate the six-month cooling-off period prescribed under the bilateral treaty, with the express objective of reaching an amicable resolution and concluding a settlement.
It added that it is the responsibility of the Lebanese government to safeguard these investments and to compensate Al Habtoor Group for the losses sustained.
The group elaborated that it’s “a legal obligation (for the Lebanese government) arising under binding bilateral agreements and international investment treaties concluded with the UAE, which impose clear duties on Lebanon to ensure protection, fair treatment, and effective remedies for investors.”
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