The United Arab Emirates’ conglomerate, Al Habtoor Group, declared on Monday its plan to initiate legal proceedings against Lebanese authorities concerning a significant dispute over its investments within Lebanon amidst the country's extensive crises. The Group asserted that the cumulative losses amount to more than $1.7 billion.
Originating from Dubai, Al Habtoor Group’s ventures in Lebanon encompass various enterprises, including a hotel located in a suburb of Beirut and Habtoor Land, a sizable theme park situated east of Lebanon’s capital. Last year, the Group reversed a decision to dismantle the Metropolitan Palace Hotel situated in Beirut, reflecting complex challenges faced amid Lebanon’s economic environment.
Lebanon has grappled with a deep economic meltdown emerging in late 2019, aggravated by widespread corruption and prolonged mismanagement among its governing entities. These conditions have barred individuals and corporate entities from accessing their funds, which remain held within the banking sector subjected to stringent restrictions.
The situation was further exacerbated by a 14-month conflict between Israel and Hezbollah, an event that the World Bank estimates has imposed reconstruction and recovery costs totaling approximately $11 billion. These multiple pressures have created substantial operational difficulties for Al Habtoor Group and other investors within Lebanon.
Al Habtoor Group explicitly cited that the imposition of measures and limitations by Lebanese authorities, including the central bank, has critically impaired its ability to access and transfer funds that were lawfully deposited. This restriction has directly contributed to the extensive harm suffered by its investments, described as both severe and sustained.
Moreover, the Group highlighted that Lebanon’s protracted political, economic, financial, and social crises, combined with the state’s inability to maintain a stable and secure environment conducive to business and investments, have amplified these adverse effects. The damages and losses to the Group’s assets and properties within the country are estimated to exceed $1.7 billion.
Demonstrating openness to resolving these issues, Al Habtoor Group expressed willingness to engage in lawful and constructive dialogue aimed at fully restoring its rights and respecting commitments by all involved parties. However, it emphasized that after exhaustive, good-faith efforts to address the dispute amicably, it now deems it necessary to advance the matter through all required legal channels to safeguard its rights in accordance with applicable international agreements and legal frameworks.
The announcement did not specify the jurisdiction in which the intended legal actions would be pursued. Attempts to secure comment from officials within Lebanon’s prime minister’s office were unsuccessful at the time of reporting.
This development comes amid an improving landscape of diplomatic relations between Lebanon and Gulf Arab states, particularly the oil-rich nations, following years of strain linked to the significant presence of Hezbollah within Lebanon. Notably, Hezbollah suffered considerable weakening in the recent conflict with Israel, which concluded with a U.S.-brokered ceasefire in November 2024.
Furthermore, Lebanon’s political leadership underwent changes last year, with the installation of a new president and prime minister both committed to combatting corruption, signaling a potential shift in governance and policy environment.