A Dubai-based conglomerate has said it will initiate legal action against Lebanese authorities, alleging losses of more than $1.7 billion following years of economic crisis, banking restrictions and political instability in Lebanon.The Al Habtoor Group said on Monday that its investments in Lebanon have suffered “severe and sustained harm” due to measures imposed by Lebanese authorities and the country’s central bank, which prevented the group from freely accessing and transferring funds deposited in local banks.The group’s businesses in Lebanon were badly hit by the country’s historic economic collapse that began in late 2019, as well as by the 14-month Israel-Hezbollah war. The World Bank has estimated the cost of reconstruction and recovery from the conflict at around $11 billion.Lebanon’s prolonged financial crisis, rooted in decades of corruption and mismanagement, has left individuals and companies unable to access their own savings trapped in the banking system.Al Habtoor Group operates several assets in Lebanon, including the Metropolitan Palace Hotel in a Beirut suburb and Habtoor Land, a large theme park east of the capital. Last year, the group had reversed earlier plans to dismantle the Metropolitan Palace Hotel.In a statement, the conglomerate said the damage to its assets and properties in Lebanon exceeds $1.7 billion, blaming not only banking restrictions but also the wider political, economic, financial and social crises, as well as the failure of the Lebanese state to provide a stable and secure investment environment.While reiterating that it remains open to “lawful and constructive solutions” that would fully restore its rights, the group said it has exhausted all good-faith efforts to resolve the dispute amicably.“As a result, the group has no other alternative but to advance this matter further and proceed to take all legal measures necessary to protect and enforce its rights under applicable international agreements and legal frameworks,” it said, without specifying where the legal action would be filed.Officials at the Lebanese prime minister’s office were not immediately available for comment.The move comes at a time when Lebanon has been seeking to repair ties with oil-rich Gulf countries after years of strained relations linked to the influence of Hezbollah. The militant group was severely weakened during its latest war with Israel, which ended with a US-brokered ceasefire in November 2024.Lebanon has since installed a new president and prime minister, both of whom have pledged to fight corruption and stabilise the country’s battered economy.
