Switzerland’s Federal Court has ruled to seize a luxury Libyan-owned guesthouse in Geneva, following a long-running legal dispute linked to an international arbitration award.
The seizure was ordered in favour of Tunisian businessman Sami Jallouli, who is seeking 20 million Swiss francs from Libya. The ruling allows enforcement measures against the high-value property after Libyan authorities failed to overturn an earlier arbitration decision.
According to court documents, Libya submitted a request in 2025 to Switzerland’s Supreme Court seeking to annul a preliminary arbitration award issued in 2017. The court rejected the appeal, ruling that it was filed well outside the legally permitted timeframe.
Under Swiss arbitration law, applications to annul arbitral awards must be submitted within 30 days of formal notification. Libya’s challenge was lodged approximately eight years after the ruling was communicated, leaving the court with no legal basis to examine the substance of the appeal.
As a result, the arbitration award remains valid and enforceable, allowing Jallouli to pursue seizure of Libyan state assets located in Switzerland. The Geneva guesthouse, described as a prestigious and high-end property, was identified as eligible collateral under Swiss enforcement procedures.
Legal observers say the case highlights the growing exposure of Libyan overseas assets to international litigation, particularly in disputes involving arbitration rulings and commercial claims. It also underscores the strict procedural rules governing arbitration appeals in Switzerland, one of the world’s leading arbitration jurisdictions.
The decision comes amid broader concerns over Libya’s legal representation in international disputes and the risks posed by delayed or inconsistent responses to arbitration proceedings. Similar cases in Europe have previously resulted in the freezing or seizure of Libyan-linked assets.
Neither Libyan authorities nor representatives of the claimant have issued official statements following the ruling. However, the judgment is expected to set a precedent for future enforcement actions involving Libyan state-owned properties abroad.