Source: The National
Monday 23 February 2026 11:15:55
Dubai-based Al Habtoor Group has appointed a law firm as it prepares to begin arbitration proceedings against Lebanon in the US.
The company has entered the "final stages of preparation" to start proceedings in Washington in accordance with the dispute resolution mechanisms provided under the UAE-Lebanon bilateral investment treaty, Al Habtoor Group said in a statement on X on Monday.
"This follows the expiry of the six-months treaty-mandated cooling-off period and the absence of any meaningful corrective action, settlement proposal, or institutional engagement capable of addressing the severe breaches and damages previously notified to the Lebanese authorities," the company added.
The Dubai-headquartered conglomerate, which made investments across hospitality, retail, leisure, real estate and banking-related activities in Lebanon, said last month that it had suffered losses exceeding $1.7 billion in the country.
It also said it was ceasing all operations in Lebanon and would terminate its employees in the country after announcing plans to take legal action.
All of the Al Habtoor Group’s investments in Lebanon were "made in good faith, in reliance on Lebanese law and binding international obligations", it said on Monday.
The company was forced to resort to legal measures due to "continued inaction, institutional paralysis, and the absence of remedial measures", it added.
"Al Habtoor Group remains open to any serious and structured settlement initiative that fully restores its rights and compensates the damages incurred."
Lebanon has been mired in an economic crisis since 2019, which got exacerbated by the recent war between Hezbollah and Israel. The World Bank estimates reconstruction and recovery efforts will cost $11 billion.
The Lebanese government has been taking measures to change the situation. It recently submitted a draft budget and a package of financial reform laws to parliament, including measures aimed at restoring confidence in the banking system and rebuilding public institutions.
Al Habtoor Group has appointed law firm White & Case to handle the case.