Al Habtoor Group takes legal action against Lebanese authorities

Al Habtoor Group said Monday that it has appointed one of the world’s leading international law firms specializing in sovereign disputes and treaty-based investment arbitration, to take legal action against Lebanese authorities over claims of investment losses of $1.7 billion.

Al Habtoor said it has entered the final stages of preparation for the commencement of international arbitration proceedings in Washington, D.C.

"This follows the expiry of the six-months treaty-mandated cooling-off period and the absence of any meaningful corrective action, settlement proposal, or institutional engagement capable of addressing the severe breaches and damages previously notified to the Lebanese authorities," it said, in a statement.

"All of the Al Habtoor Group’s investments in Lebanon were made in good faith, in reliance on Lebanese law and binding international obligations. The Group exercised restraint and pursued amicable engagement for an extended period, allowing full opportunity for resolution within the treaty framework.

"However, continued inaction, institutional paralysis, and the absence of remedial measures have left the Group with no alternative but to proceed through formal international legal channels to enforce and recover its rights," the statement went on to say, adding that Al Habtoor Group "remains open to any serious and structured settlement initiative that fully restores its rights and compensates the damages incurred."