Al Habtoor Group board approves sale of all its assets and investments in Lebanon

Dubai-based Al Habtoor Group's board has approved the sale of all the company's assets and investments in Lebanon, following the cessation of operations in the country. The conglomerate, which has been present in Lebanon since 2001 with various hospitality, retail, leisure, real estate and banking-related activities, stated that it suffered losses exceeding $1.7 billion due to prolonged instability and an investment dispute.

The board decided that divesting the Lebanese assets was the most appropriate course of action, aligning with its commitment to responsible investment management and capital allocation. The company plans to divest its Lebanese assets through a structured and commercially driven process, evaluating each asset individually and pursuing transactions based on market conditions and valuations.

Al Habtoor Group also appointed law firm White & Case to initiate arbitration proceedings against Lebanon under the UAE-Lebanon bilateral investment treaty. The group's presence in Lebanon began with the opening of its first hotel in 2001, and it has made substantial investments despite facing repeated periods of economic and political uncertainty.

The decision reflects a shift in the company's investment strategy, concentrating resources on markets offering greater long-term stability, investment certainty, and sustainable growth opportunities. Lebanon has been grappling with an economic crisis since 2019, with the World Bank predicting a 6.4% contraction in 2026. The country's reliance on imports and exposure to shocks such as disruptions in shipping and energy supplies have exacerbated the situation.

The International Monetary Fund has recently initiated discussions with Lebanon as part of broader efforts to support vulnerable countries in the Middle East and North Africa.