Al Habtoor moves toward arbitration against Lebanon, hires White & Case

Dubai: Dubai-based Al Habtoor Group has appointed international law firm White and Case and is preparing to file arbitration proceedings in Washington, D.C., marking a significant escalation in its long-running investment dispute with the Lebanese Republic.

The conglomerate said preparations for arbitration are in their final stages following the expiry of a six month cooling off period mandated under the bilateral investment treaty between the UAE and Lebanon.

The Group confirmed that no settlement proposal or institutional engagement had emerged during that period capable of addressing what it described as severe breaches and damages to its investments.

The arbitration will proceed under dispute resolution mechanisms contained in the UAE Lebanon Bilateral Investment Treaty, which has been in force since 1999 and requires both countries to protect foreign investments and ensure fair treatment.

The Group said all of its investments in Lebanon were made in good faith and in reliance on local law and international obligations.

"Investor protection, treaty compliance, and respect for international legal obligations remain fundamental pillars of economic credibility," it said in a statement. "The Group’s actions therefore reflect not only the pursuit of corporate recovery, but also a principled assertion of the rule of law and the sanctity/integrity of foreign investment protections."

The dispute stems from losses exceeding $1.7 billion linked largely to restrictions imposed by Lebanese authorities and the central bank, Banque du Liban, which prevented the Group from accessing and transferring funds held in local banks.

These restrictions emerged during Lebanon’s prolonged financial crisis, which began in 2019 and saw banks freeze foreign currency deposits while the national currency lost most of its value.

The Group said its losses extend beyond blocked deposits and include damage to assets and operations across hospitality, retail, leisure and real estate sectors built over decades of investment.

Despite the move toward arbitration, the company said it remains open to any serious settlement initiative capable of restoring its rights and compensating damages.

However, it added that continued inaction and institutional paralysis left it with no alternative but to proceed through international legal channels to enforce its claims.

“Preparations for arbitration in Washington, D.C. are now at an advanced stage,” the Group said.