Dubai-based Al Habtoor Group has appointed international law firm White & Case as it prepares to file arbitration proceedings in Washington, D.C., escalating its long-standing investment dispute with the Lebanese Republic.
The Group confirmed that preparations for arbitration are in the final stages following the expiry of a six-month cooling-off period under the UAE-Lebanon Bilateral Investment Treaty. No settlement proposal or institutional engagement emerged to address what Al Habtoor describes as severe breaches affecting its investments.
The arbitration will proceed under the treaty’s dispute resolution mechanisms, which have been in force since 1999 to protect foreign investments and ensure fair treatment. Al Habtoor stated that its investments in Lebanon were made in good faith, underscoring the importance of investor protection and treaty compliance.
The dispute stems from losses exceeding $1.7 billion linked to restrictions by Lebanese authorities and Banque du Liban, which blocked the Group’s access to foreign currency deposits amid Lebanon’s financial crisis beginning in 2019. Losses include blocked deposits and damage across hospitality, retail, leisure, and real estate sectors.
Despite moving toward arbitration, Al Habtoor remains open to serious settlement initiatives that restore its rights and compensate damages. However, institutional paralysis left arbitration as the sole option to enforce its claims.
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