Dubai-based Al Habtoor Group is pursuing legal action against Lebanon and has ceased operations in the country, citing $1.7 billion in losses due to banking restrictions.
The conglomerate announced Monday it has retained the international law firm White & Case to represent it in an investment dispute with Lebanon, paving the way for an international arbitration claim in Washington. The move underscores the growing financial challenges facing foreign investors in Lebanon.
Al Habtoor’s investments in Lebanon date back to 2001, encompassing hospitality, luxury hotels, retail, entertainment, real estate, and related banking activities. According to a statement, the group remains open to a serious settlement, but has reached the final stages of preparing for arbitration after six months of negotiations yielded no resolution.
The company asserts its investments were made in good faith and in accordance with Lebanese law, as well as the terms of a bilateral investment treaty between the United Arab Emirates and Lebanon, which has been in effect since 1999. That agreement is intended to protect foreign investments and ensure a stable operating environment.
In January 2026, Al Habtoor Group issued a statement outlining its long-term commitment to Lebanon, noting its investments had “contributed to supporting job opportunities, enhancing the tourism sector, developing infrastructure, and revitalizing general economic activity.” More details on the group’s initial statement can be found here.
However, the recent escalation comes after mounting losses, reportedly reaching $1.7 billion, attributed to the restrictive banking environment. Al Habtoor is reportedly seeking $1.7 billion in damages, according to reports.
The case highlights the difficulties foreign businesses face when navigating Lebanon’s ongoing economic and financial crisis.
