Dubai’s Al Habtoor moves ahead with global legal case against Lebanon

Dubai: Dubai-based Al Habtoor Group has initiated international arbitration proceedings against the Lebanese Republic, escalating a long-running dispute over its investments in the country.

The UAE conglomerate said late last night that it has formally filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC, and Lebanon has been notified in line with international procedures.

The move comes after what the group described as a prolonged period of “good-faith efforts” to resolve the dispute amicably, which ultimately failed to deliver any meaningful outcome.

In a statement, Al Habtoor Group said its investments in Lebanon were made based on the country’s legal and regulatory framework, as well as protections under bilateral investment treaties.

However, it claims to have suffered significant losses due to measures taken by the Lebanese government and its alleged failure to safeguard those investments.

“The commencement of these proceedings reflects a clear and deliberate decision to pursue all available legal remedies to protect the Group’s rights,” the company said, adding that it would seek full redress through international legal channels.

The case will be handled under ICSID, a key global arbitration institution that deals with disputes between investors and sovereign states, often under bilateral investment treaties.

Such cases typically involve claims of expropriation, unfair treatment, or failure to provide adequate legal protection to foreign investors.

Al Habtoor Group, founded by Khalaf Ahmad Al Habtoor, is one of the UAE’s largest conglomerates, with interests spanning hospitality, real estate, automotive, and education. The company has had a longstanding presence in Lebanon, particularly in the hospitality sector.

While the group did not disclose the exact amount of damages sought, the arbitration signals a significant escalation and could have broader implications for investor confidence in Lebanon, which has been grappling with a prolonged economic crisis.

“The commencement of these proceedings reflects a clear and deliberate decision to pursue all available legal remedies to protect the Group’s rights and to seek full redress through the appropriate international legal channels,” it said.

Al Habtoor Group said it would pursue the arbitration process “firmly and with discipline,” marking a decisive shift from negotiations to legal action.

Since March 2, Lebanon has been gripped by renewed fighting between Israel and militant group Hezbollah, marking a major escalation of a conflict that first intensified in late 2023 and forms part of the broader Middle East crisis.

The violence has killed more than 2,000 people, including both militants and civilians, and forced over one million residents — roughly a fifth of the population — from their homes, triggering a severe humanitarian crisis.