UAE-based Al Habtoor Group announced on Monday that it would be suing Lebanese authorities over $1.7 billion in lost investments, dealing a possible blow to the Lebanese government’s aim to attempt Gulf funding as a way to revive its economy.
The financial meltdown in Lebanon in 2019 devastated the banking industry, and depositors, including individuals and large-scale enterprises, were unable to access their savings.
The steps undertaken by the banks were in the form of informal capital controls, yet no formal law was enacted to declare such practices by the government.
In an email, Al Habtoor Group stated that its “investments have suffered severe and sustained harm as a direct result of measures and restrictions imposed by Lebanese authorities and the Banque du Liban, which have prevented the Group from freely accessing and transferring lawfully deposited funds held in Lebanese banks”.
The group claimed it had already exhausted all attempts to settle the dispute amicably and would initiate legal action on damages to its assets and properties in Lebanon, which it estimated amounted to more than $1.7 billion. It did not state whether it had already done so or not, and in which jurisdiction.
The office of Lebanon’s Prime Minister Nawaf Salam and the press office of Banque du Liban, the country’s central bank, did not respond immediately to requests for comment.
Over the decades, investments and financial inflows by the Gulf states had been a significant source of foreign currency in Lebanon, but since the financial collapse of the country, some of the Gulf states withdrew investments and prohibited the importation of Lebanese products.
Even though ties are already gradually thawing, the majority of Gulf states are reluctant to invest until Lebanon makes financial reforms accepted by the International Monetary Fund.
Khalaf Ahmad Al Habtoor, the Head of the Dubai Conglomerate, reported in January 2025 that he had refrained from all planned investments in Lebanon due to continuing instability and would sell all his properties and investments in the country.
