Emirati conglomerate Al Habtoor Group seeks justice for breaches of 'Investment Treaty' with Lebanon

In a Wednesday statement, the Emirati conglomerate Al Habtoor Group issued a notice of an Investment Treaty Dispute against the Lebanese Republic about the country's breaches of the Bilateral Investment Treaty between the United Arab Emirates and Lebanon.

It said that the dispute was about the Group's investments in Lebanon. 

"Al Habtoor Group has invested in the Lebanese Republic close to USD 1 billion to date. Among which, the Group placed funds within the Lebanese banking system and invested in luxury hotels branded under Hilton Hotels & Resorts, a shopping mall, a 100,000 sqm entertainment & leisure destination named Habtoor Land, and other real estate investments across the country," affirmed the statement.

Lebanon agreed to protect Emirati investments under the UAE-Lebanon Treaty, which entered into force in 1999; however, it breached its obligations towards Al Habtoor Group under the Treaty.

"Lebanon and its Central Bank have imposed restrictions preventing Al Habtoor Group from freely transferring its funds amounting to over USD 44 million from the Lebanese banks," the statement expressed.

The statement also affirmed Lebanon's failure to secure a safe environment for Al Habtoor Group's businesses and investments. As a result, the latter incurred and "continues to incur significant losses and damages."

Represented by the international law firm White & Case LLP, Al Habtoor Group confirmed that it "intends to pursue its rights vigorously, locally and internationally."

"By sending a formal notice of the dispute to the Lebanese various Government bodies in early January 2024, Al Habtoor Group triggered the six-month cooling-off period under the UAE-Lebanon Treaty," the statement added.

It concluded: "If the dispute is not resolved within six months and the Al Habtoor Group claims are not settled, it will be open to Al Habtoor Group to commence appropriate local and international legal proceedings against the Lebanese Republic in accordance with the Treaty."