For decades, Al Habtoor Group has been a committed foreign investor in the Lebanese Republic. Through investments spanning hospitality and luxury hotels, retail, leisure, real estate, and banking-related activities, the Group has contributed materially to employment, tourism, infrastructure development, and broader economic activity in Lebanon. These investments formed an integral part of the Group’s long-term productive presence in the country.
All investments were made in good faith and in reliance on Lebanese law, as well as on the State’s commitments and obligations under the Bilateral Investment Treaty between the United Arab Emirates and the Lebanese Republic, which has been in force since 1999 and requires both countries to protect foreign investments and ensure a safe and stable operating environment.
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. 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 USD 1.7 billion. These enormous losses are not limited to the unlawful deprivation of access to the Group’s funds in the Lebanese banks, but also arise from the broader collapse of institutional stability and the failure of the Lebanese government to take timely and necessary measures to protect foreign investments and private properties.
The responsibility of the Lebanese government to safeguard these investments and to compensate Al Habtoor Group for the losses sustained is not a matter of discretion or goodwill, but rather a legal obligation arising under binding bilateral agreements and international investment treaties concluded with the United Arab Emirates, which impose clear duties on Lebanon to ensure protection, fair treatment, and effective remedies for investors.
In early January 2024, Al Habtoor Group, acting through its leading international law firm with extensive experience in sovereign and treaty-based investment disputes formally notified the Lebanese Government of the existence of an investment dispute. This notice was issued 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.
Despite sustained good-faith efforts and extensive institutional engagement, these discussions have not resulted in any meaningful progress, corrective measures, or effective remedies by the relevant Lebanese authorities to restore the situation, address the breaches identified, or uphold the protections guaranteed under law and international agreements.
Investor protection is not discretionary, it is a fundamental obligation under international law and a prerequisite for economic credibility and stability. Al Habtoor Group remains open to lawful and constructive solutions that restore its rights in full and respect the commitments of all parties. However, the Group cannot and will not continue to absorb additional losses arising from prolonged inaction, negligence and systemic failure.
Al Habtoor Group 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. Accordingly, the Group has no other alternative but to advance this matter further and proceed to take all legal measures necessary to protect and enforce its rights under applicable international agreements and legal frameworks.