BY EMMANUEL OGBONNA
A major conglomerate based in the United Arab Emirates said on Monday it plans to pursue legal action against Lebanese authorities over a long-running dispute tied to its investments in the crisis-hit country, alleging losses exceeding $1.7 billion amid Lebanon’s prolonged economic and political turmoil.
The Dubai-based Al Habtoor Group said its operations in Lebanon have suffered extensive damage since the country’s unprecedented financial collapse erupted in late 2019, a crisis that has crippled the banking system, wiped out savings and driven much of the population into poverty. The group said its difficulties were further compounded by years of political paralysis, social unrest and, more recently, the fallout from the 14-month war between Israel and Hezbollah, which inflicted heavy damage on infrastructure and commercial activity across parts of the country.
According to the World Bank, the conflict added billions of dollars to Lebanon’s already staggering recovery needs, with reconstruction and recovery costs estimated at around $11 billion. For foreign investors such as Al Habtoor Group, the cumulative impact of the economic collapse and security shocks has severely undermined confidence and operations.
Al Habtoor Group holds several high-profile investments in Lebanon, including a luxury hotel in a Beirut suburb and Habtoor Land, a large-scale theme park east of the capital. Despite the worsening conditions, the company said last year it had reversed earlier plans to dismantle the Metropolitan Palace Hotel, signaling a tentative commitment to maintaining a presence in the country even as losses mounted.
In its statement, the conglomerate said its investments have “suffered severe and sustained harm” in recent years, blaming measures imposed by Lebanese authorities and the central bank that restricted access to funds deposited in local banks. Like many businesses and individuals in Lebanon, the group said it has been unable to freely access or transfer its own money due to informal capital controls that were introduced as the financial system unraveled.
“These measures effectively prevented the group from freely accessing and transferring lawfully deposited funds,” the statement said, adding that the restrictions had caused significant operational and financial damage. The company said the situation was worsened by Lebanon’s failure to provide a stable and secure environment for businesses and investors, citing the depth of the country’s political, economic, financial and social crises.
Al Habtoor Group said the total damage to its assets and properties in Lebanon now exceeds $1.7 billion, a figure that underscores the scale of losses faced by foreign investors since the onset of the crisis. Lebanon’s economic collapse, widely attributed to decades of corruption, mismanagement and unchecked borrowing by the political elite, has left banks insolvent and depositors unable to withdraw their savings, triggering widespread anger and legal disputes at home and abroad.
While announcing its intention to escalate the matter legally, the group said it remains open to a negotiated resolution. It said it has exhausted all reasonable efforts to settle the dispute amicably and is willing to consider “lawful and constructive solutions” that would fully restore its rights and honor the commitments of all parties involved.
However, the statement said the company now sees no alternative but to pursue formal legal measures under applicable international agreements and legal frameworks to protect its interests. It did not specify where the legal action would be filed or which courts or arbitration bodies would be involved.
The announcement comes at a sensitive time for Lebanon, which has been seeking to rebuild ties with wealthy Gulf states after years of strained relations. Tensions had been fueled in part by the growing influence of Hezbollah, the Iran-backed militant group, within Lebanon’s political and security landscape. That influence drew criticism and diplomatic friction with several Arab governments.
Hezbollah emerged significantly weakened from its latest confrontation with Israel, which ended with a U.S.-brokered ceasefire in November 2024. Since then, Lebanese officials have sought to project an image of renewed stability and reform in a bid to attract foreign investment and financial support.
A new president and prime minister took office last year, both pledging to tackle corruption, restore confidence in state institutions and revive the economy. Whether those promises will translate into tangible reforms and relief for investors remains uncertain, as Lebanon continues to grapple with deep-rooted structural problems and the legacy of years of crisis.
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