The escalating political, economic, financial, and social crises in Lebanon have led to significant and continuous financial losses and damages for the Al Habtoor Group, exceeding 1.7 billion US dollars. The Group stated in its statement that it was a committed foreign investor in the Lebanese Republic, noting that its investments suffered severe and extensive damage. It added that it had exhausted all efforts to settle this dispute amicably, and therefore has no alternative but to proceed and take all necessary legal measures to protect and enforce its rights. In detail, the Group said in its statement: «(The Al Habtoor Group) has always been a committed foreign investor in the Lebanese Republic, where its investments, spanning decades, have contributed to supporting job opportunities, boosting the tourism sector, developing infrastructure, and stimulating general economic activity». It noted that these investments included the hospitality, luxury hotels, retail, entertainment, and real estate sectors, in addition to banking activities related to the Group's operations, and all constituted an essential part of its long-term productive presence in Lebanon. The Group confirmed that these investments were made in good faith, in accordance with applicable Lebanese laws, and based on the obligations and commitments of the Lebanese state under the bilateral investment agreement signed between the United Arab Emirates and the Lebanese Republic, which has been in effect since 1999 and obliges both parties to protect foreign investments and ensure a safe and stable operating environment for them. The Al Habtoor Group added: «Over the past years, these investments have suffered severe and extensive damage as a direct result of measures and restrictions imposed by Lebanese authorities and the Central Bank of Lebanon, which prevented the Group from having free access to its legally deposited funds in Lebanese banks and transferring them». This notice was intended to activate the six-month period stipulated in the bilateral agreement as a negotiation period, with the explicit aim of reaching a friendly settlement and resolving the dispute through available legal means. It noted that despite the Group's earnest efforts and intensive institutional communication with the relevant parties, these endeavors did not yield any tangible progress, the taking of actual corrective measures, or the provision of effective redress by the competent Lebanese authorities to rectify the situation, address the breaches, or fulfill the guarantees provided by law and international agreements. The Group said in its statement: «Protecting investments is not a matter of choice or discretion, but a fundamental obligation under international law and a prerequisite for economic credibility and stability. (The Al Habtoor Group) confirms that it remains open to legal and constructive solutions that fully restore its rights and respect the commitments of all parties, but at the same time, it cannot and will not continue to bear additional losses resulting from prolonged delay, neglect, and institutional failure». The Al Habtoor Group pointed out that it had exhausted all reasonable and bona fide efforts to settle this dispute amicably, including official notification, communication with competent authorities, and granting a sufficient time frame for corrective measures to be taken, without receiving any meaningful response or achieving effective resolution. These factors collectively led to (the Al Habtoor Group) incurring significant and continuous financial losses and damages exceeding 1.7 billion US dollars, which are not limited to the unlawful deprivation of access to its funds but also extend to the broad impact of the collapse of institutional stability, the state's failure to take necessary and timely measures to protect foreign investments and private property». The Group emphasized that «the responsibility of the Lebanese state to protect these investments and compensate (the Al Habtoor Group) for the damages and losses incurred is not a matter of discretion or linked to good faith, but is a clear legal obligation arising from binding bilateral agreements and international treaties on investment protection concluded by the Lebanese Republic with the UAE, which impose clear obligations on Lebanon to ensure protection, fair and equitable treatment, and the provision of effective remedies for investors». The Group continued: «In early January 2024, (the Al Habtoor Group), through a leading international law firm with extensive experience in sovereign and treaty-based investment disputes, issued a formal notice to the Lebanese government regarding the existence of an investment dispute. These actions were accompanied by the state's failure to provide a stable and secure environment for the Group's operations and investments amidst the escalating political, economic, financial, and social crises witnessed by Lebanon. Accordingly, the Group has no alternative but to proceed and take all necessary legal measures to protect and enforce its rights under the relevant international agreements and legal frameworks».
