"The board of Charlton Athletic was informed by Zabeel Investments on Thursday that it will not be proceeding with the proposed acquisition of Charlton Athletic," a statement said.
Earlier this month managing director of Zabeel Capital, a unit of the investment firm, Jbran Rahal said that the London club had "great potential."
Charlton said that Zabeel Investments, which tried to buy Liverpool last year, had told them it had no intention of buying an English football club in the foreseeable future.
They had been linked with a bid for Newcastle United in September, whose owner Mike Ashley is looking for a buyer after pressure from discontented fans.
