Dubai: UAE-based Al Habtoor Group has said it suffered losses of more than $1.7 billion from its investments in Lebanon and is preparing to take legal action against the Lebanese government after talks failed.
In a statement issued on Monday, the group said years of banking restrictions, regulatory inaction, and the inability to access funds deposited in Lebanese banks had caused severe financial damage.
Founded by Khalaf Ahmad Al Habtoor, the Dubai-headquartered family-owned conglomerate operates across hospitality, real estate, automotive, education, and publishing. It has invested in Lebanon for several decades.
The group said its losses were mainly due to measures imposed by Lebanese authorities and the central bank, Banque du Liban, which prevented companies from withdrawing or transferring foreign currency deposits. These restrictions were introduced as Lebanon’s financial system collapsed.
Al Habtoor Group said it invested in Lebanon in good faith, relying on protections under a bilateral investment treaty between the UAE and Lebanon that has been in force since 1999.
In January 2024, the group formally notified the Lebanese government of an investment dispute, triggering a six-month period aimed at resolving the issue through dialogue. However, the company said discussions failed to produce any meaningful outcome.
“With no effective remedies in place, we have no option but to pursue legal action,” the group said, adding that investor protection is a fundamental obligation under international law.
Lebanon has been facing a severe economic and financial crisis since 2019. Banks have frozen access to foreign currency deposits, the local currency has collapsed, and capital controls remain in place, leaving investors unable to recover their funds.
The group’s warning comes as Lebanon continues talks with the International Monetary Fund to restructure its banking sector and address the ongoing financial collapse.
