The Habtoor Group, known for its economic contributions in Lebanon, is facing significant challenges due to the ongoing crises in the country. The group is now taking legal action to protect its rights in Lebanon after incurring massive financial losses exceeding $1.7 billion as a result of the deteriorating political and economic conditions.
Escalating Crises Impacting Investments
The Habtoor Group reported that the escalating political, economic, and social crises in Lebanon have led to substantial and ongoing financial losses. In an official statement, the group confirmed that it has been seriously investing in Lebanon for decades, contributing to job creation and infrastructure improvement. However, these investments have faced significant pressures that have negatively affected their performance.
Efforts for Peaceful Settlement
The group indicated that it has done everything possible to reach a peaceful resolution to the ongoing dispute, but it has no choice but to take legal action to protect its rights in Lebanon. It affirmed the value of its good-faith investments in accordance with Lebanese laws and international agreements, placing the responsibility on the state to protect those rights.
Notice to the Lebanese Government
In early January 2024, the Habtoor Group submitted an official notice to the Lebanese government regarding an investment dispute, as required by the bilateral agreement during a six-month negotiation period. Despite its attempts to find amicable solutions, the group has not made significant progress, prompting it to resort to legal options.
Government Commitment to Protect Investments
The Habtoor Group emphasized that the responsibility of the Lebanese state is not merely discretionary but a legal obligation to protect investments. Nevertheless, the authorities have not responded effectively to the group’s demands, leading it to take additional legal steps to safeguard its rights in Lebanon.
In light of these developments, the Habtoor Group has suffered severe financial losses totaling $1.7 billion. This underscores the critical importance of improving the investment climate in Lebanon to restore confidence in the economic environment.