BEIRUT: United Arab Emirates-based Al Habtoor Group announced on Monday that it would take legal action against Lebanese authorities over $1.7 billion in investment losses, potentially dealing a blow to the Lebanese government’s efforts to encourage Gulf funding as a way to boost the economy.
Lebanon’s financial collapse in 2019 devastated the banking sector, leaving savers from individuals to large corporations locked out of their savings. Although the measures taken by banks amounted to informal capital controls, the government never passed formal legislation governing such practices.
“As a direct result of the measures and restrictions imposed by the Lebanese authorities and Liban Bank, the company’s investments have suffered serious and lasting damage. These measures have prevented the group from freely accessing and transferring funds legally deposited in Lebanese banks,” Al Habtoor Group said in an emailed statement.
The group said it would make every effort to resolve the dispute amicably and pursue legal action, citing more than $1.7 billion in damages to assets and property in Lebanon. He did not say whether it had already taken such action or in which jurisdiction.
Lebanon’s Prime Minister Nawaf Salam’s office and the press office of the country’s central bank, Banque Liban, did not respond to requests for comment. For decades, investment and capital inflows from Gulf countries were Lebanon’s main source of foreign currency, but after the country’s financial collapse, some Gulf countries spooked at investment and banned imports of Lebanese products.
Although relations are slowly thawing, most Gulf countries are hesitant to invest until Lebanon implements financial reforms approved by the International Monetary Fund. In January 2025, Dubai conglomerate head Khalaf Ahmad Al Habtoor said he would cancel all investment plans in Lebanon and sell all real estate and investments in the country due to continued instability. (Reporting by Maya Gebeily; Writing by Tala Ramadan; Editing by Kirsten Donovan)
