Al Habtoor Group has confirmed that it has appointed White & Case to represent the group in international arbitration proceedings against the Lebanese Republic, following what the group described as the expiry of a treaty-mandated cooling-off period and the continued absence of any resolution from Lebanese authorities.
The announcement, made on February 23, marks the conclusion of what the group characterised as an extended period of restraint and attempts at engagement, and signals the formal commencement of proceedings in Washington, D.C.
The group confirmed that proceedings will be pursued in accordance with the dispute resolution mechanisms under the Bilateral Investment Treaty between the United Arab Emirates and Lebanon, as well as applicable international investment frameworks.
Al Habtoor Group moves to arbitration after Lebanon fails to address investment breaches
The six-month cooling-off period mandated by the treaty has now elapsed. Al Habtoor Group stated there had been no “meaningful corrective action, settlement proposal, or institutional engagement capable of addressing the severe breaches and damages previously notified to the Lebanese authorities.”
White & Case, which the group described as “one of the world’s leading international law firms specialising in sovereign disputes and treaty-based investment arbitration,” has been formally retained to pursue the claims.
Al Habtoor Group stated that all of its investments in Lebanon were made “in good faith, in reliance on Lebanese law and binding international obligations.” The group did not disclose the nature or value of the investments in question, nor did it specify the total sum of damages being sought.
The group said it had “exercised restraint and pursued amicable engagement for an extended period, allowing full opportunity for resolution within the treaty framework,” but that “continued inaction, institutional paralysis, and the absence of remedial measures” had left it with no alternative but to proceed through formal channels.
Despite the proceedings reaching an advanced stage, Al Habtoor Group said it “remains open to any serious and structured settlement initiative that fully restores its rights and compensates the damages incurred.”
The group gave no indication that any such initiative was under way.
Al Habtoor Group framed the arbitration as extending beyond a corporate dispute. The group stated that its actions “reflect not only the pursuit of corporate recovery, but also a principled assertion of the rule of law and the sanctity and integrity of foreign investment protections.”
The group added that “investor protection, treaty compliance, and respect for international legal obligations remain fundamental pillars of economic credibility.”
Al Habtoor Group confirmed that preparations for arbitration in Washington, D.C. are “now at an advanced stage” and that it will “continue to update stakeholders and the public as the arbitration process progresses.”
The Lebanese Republic has not issued a public response to the announcement at the time of publication.
