Dubai-based conglomerate Al Habtoor Group has approved the sale of all its assets and investments in Lebanon, formalising its withdrawal from the country following prolonged economic and political instability.
The group’s board of directors approved a complete divestment of its Lebanese holdings, which span hospitality, retail, leisure, real estate and banking-related activities.
The decision follows the group’s announcement in January that it would cease all operations in Lebanon and terminate its employees in the country, citing “prolonged instability” and an investment dispute.
At the time, Al Habtoor Group said it had suffered losses exceeding $1.7B from its investments in the country.
“Following careful consideration, the board has determined that the complete divestment of the group’s Lebanese assets represents the most appropriate course of action, consistent with its commitment to responsible investment management, capital allocation, and the protection of its interests,” Al Habtoor Group said on Monday.
Structured divestment process
Al Habtoor Group said the sale would be conducted through a structured, commercially driven process, with individual assets assessed according to market conditions and valuations.
The company said it would pursue transactions based on the merits of each asset and appropriate market conditions, adding that further details of the divestment process would be announced in due course.
The board’s decision “reflects a considered shift” in the group’s investment strategy, with resources set to be concentrated in markets offering greater long-term stability, investment certainty and sustainable growth opportunities.
Lebanon investment dispute
The divestment follows a series of disputes between the conglomerate and the Lebanese authorities.
In February, Al Habtoor Group appointed international law firm White & Case to begin arbitration proceedings against Lebanon in the U.S.
The case is based on the dispute resolution mechanisms under the UAE-Lebanon bilateral investment treaty, according to the group.
Al Habtoor Group established its presence in Lebanon in 2001 with the opening of its first hotel. It said it had made substantial investments in the country since then, maintaining its presence through successive periods of economic and political uncertainty.
Economic crisis
Lebanon has faced a prolonged economic crisis since 2019, which the World Bank has described as one of the worst in modern history.
The World Bank expects the country’s economy to contract by 6.4% in FY26.
Heavily reliant on imports, Lebanon is also facing additional economic pressures from the fallout of the Iran war, including potential disruptions to shipping routes and energy supplies.
The International Monetary Fund said last month it was advancing discussions with Lebanon as part of broader efforts to support vulnerable economies across the Middle East and North Africa.
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