Al-Habtoor announces legal action against Lebanese state in Washington

In an "official statement" posted on its X account, the Al-Habtoor Group announced on Monday that it was "initiating a legal proceeding against the Lebanese Republic," accusing the Lebanese Republic of causing it significant losses due to its decisions.

The group stated in its post that "the law firm White & Firms, one of the most prestigious in the world handling sovereign litigation and investment arbitration based on treaties, will represent [it]."

The group, owned by Emirati businessman Khalaf al-Habtoor, announced on Jan. 28 the closure of all its operations in Lebanon, citing "the deterioration of political, economic and security conditions in the country."

It also claimed to have been the target of "hostile campaigns, public attacks and defamatory actions aimed at its activities."

This announcement followed threats of legal action previously made by Khalaf al-Habtoor against the Lebanese government and the Banque du Liban (BDL), whom he accused of "causing, through their decisions, investment losses exceeding $1.7 billion [6.24 billion dirhams]."

These threats are now materializing as the group announced Monday it is "at the final stage of preparing an international arbitration process in Washington, D.C., in accordance with the dispute resolution mechanisms that fall under the treaty signed between the United Arab Emirates and Lebanon."

They added: "These measures follow the expiration of the six-month cooling-off period stipulated by the treaty, and in the absence of any significant corrective action, settlement proposal or institutional commitment likely to remedy the serious violations and damages previously notified to the Lebanese authorities."

In its statement, the group said it "had no choice, in the absence of any alternative, but to resort to legal channels." However, it stated it would "remain open to any serious and structured initiative aimed at fully restoring its rights and compensating for the damages suffered."