Al Habtoor Group has decided to sell all its assets and investments in Lebanon, including hotels, commercial and residential properties, and land. This decision, which has been approved by the group's board of directors, signifies the complete exit of this group from a market in which it has been active since the late 1990s.
Reasons for Leaving Lebanon
On January 28, the company announced that it has suspended its activities in Lebanon due to incurring losses exceeding $1.7 billion. These losses stem from the country's financial crisis, capital restrictions, and security concerns. This decision is part of a broader strategic review of Al Habtoor Group's investment portfolio and long-term business priorities.
Al Habtoor Group stated in a statement that its investments in Lebanon are worth billions, but due to ongoing negotiations with potential buyers and investors, it has refrained from disclosing specific values. This sale will be conducted as a structured process, with each asset evaluated independently and transactions determined based on market conditions and fair valuations.
Economic Impacts and UAE-Lebanon Relations
Founded in 1970, Al Habtoor Group is one of the largest holding companies in the United Arab Emirates, focusing on infrastructure, mining, railways, real estate, oil, and gas. The group is a major investor in Lebanon, with assets including the Habtoor Grand Conference Center and Spa in Beirut.
The company's decision to exit Lebanon comes at a time when UAE-Lebanon economic relations are under review. In August, a high-level business delegation led by Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, visited Beirut, during which several memorandums of understanding were signed between the two countries.
However, the ongoing instability in Lebanon has discouraged many foreign investors. Lebanon's economy has been in freefall since August 2019 due to a dollar shortage, leading to widespread protests and bank closures. Despite early signs of stabilization and moderate growth last year, the escalation of the Israel-Hezbollah conflict along the country's southern border has jeopardized these gains.
