UAE-based Al Habtoor Group has said it is ceasing all operations in Lebanon and will terminate its employees in the country as it takes legal action for its investment dispute.
The decision comes “against the backdrop of prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions directed at the group and its businesses”, the company said on Wednesday.
It also comes amid broader legal proceedings currently under way between the company and the Lebanese government.
“Over an extended period, the group has sought to preserve its operations, protect its employees, and safeguard its investments despite increasingly challenging circumstances,” it said.
“However, the cumulative impact of these factors has rendered the continuation of operations unsustainable at this time.”
The Dubai-headquartered conglomerate, which made investments across hospitality, retail, leisure, real estate and banking-related activities in Lebanon, said this week that it has suffered losses exceeding $1.7 billion.
Investments have “suffered severe and sustained harm” as a direct result of measures and restrictions imposed by Lebanese authorities and the Banque du Liban, the company said on Monday. It added that the authorities have prevented it from freely accessing and transferring lawfully deposited funds held in Lebanese banks.
The group established its presence in Lebanon with the opening of its first hotel in 2001. It said it has “absorbed substantial operational and financial burdens” during successive wars and crises and continued “despite the absence of effective state decision-making and the failure to provide the minimum levels of stability and protection required”.
“That approach, however, is no longer viable,” the company said, adding it is seeking to prevent further unjustified losses. “Al Habtoor Group finds itself compelled to make the decision to cease its operations in Lebanon and halt the ongoing financial drain, and proceed with the termination of all employees.”
The company also said it will continue to take all appropriate legal measures in accordance with applicable international agreements and legal frameworks.
The conglomerate in January 2024 had formally notified the Lebanese government about an investment dispute. Under the UAE-Lebanon treaty effective since 1999, Lebanon is committed to protect investments made by Emirati entities within its borders, the group said.
Lebanon has been mired in an economic crisis since 2019, which worsened during recent geopolitical conflicts. The Lebanese government has been taking measures to change the situation. It recently submitted a draft budget and a package of financial reform laws to parliament, including measures aimed at restoring confidence in the banking system and rebuilding public institutions.
