UAE's Al Habtoor Group vows Lebanon lawsuit over $1.7B loss

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UAE’s Al Habtoor Group vows Lebanon lawsuit over $1.7 billion loss

January 26, 2026

DUBAI,— Dubai-based Al Habtoor Group said Monday it will pursue legal action against Lebanese authorities over losses it says exceed $1.7 billion, a move that could further complicate Lebanon’s efforts to attract foreign investment after years of economic crisis.

The company said in a statement that its investments in Lebanon were harmed by restrictions imposed by Lebanese authorities and the Banque du Liban, which prevented it from accessing and transferring funds legally deposited in local banks.

Those measures followed Lebanon’s financial collapse in 2019, which severely weakened the banking sector and limited withdrawals and transfers for depositors.

Banks introduced informal capital controls that trapped deposits, even though the Lebanese government never passed a law formally authorizing such restrictions. Businesses, individuals, and foreign investors have since struggled to recover their funds.

In an emailed statement, Al Habtoor Group said it had exhausted attempts to resolve the dispute through dialogue and would proceed with legal action related to damage to its assets and properties in Lebanon.

The group said total losses exceeded $1.7 billion but did not specify whether legal proceedings had already begun or which jurisdiction would handle the case.

Requests for comment sent to the office of Prime Minister Nawaf Salam and the press office of Banque du Liban were not immediately answered.

For decades, Lebanon relied heavily on financial inflows and investments from Gulf countries as a key source of foreign currency.

Following the financial collapse, several Gulf states reduced their economic engagement with Lebanon, and some imposed bans on Lebanese imports.

While relations have gradually improved, Gulf governments have remained cautious about returning capital to Lebanon. Many have linked renewed investment to financial reforms backed by the International Monetary Fund, including restructuring the banking sector.

In January 2025, Khalaf Ahmad Al Habtoor, chairman of the conglomerate, said the group had canceled all planned investments in Lebanon due to continued instability.

He also said the company would sell all properties and investments it held in the country.

(With files from Reuters)