Dubai-based Al Habtoor Group said its board of directors had approved the sale of the company's assets and investments in Lebanon, after it ceased operations there.
The company, which has hotels, commercial and residential properties in Lebanon, said in January that it was ceasing operations and would terminate its employees in the country due to "prolonged instability" and an investment dispute.
The conglomerate, which made investments across hospitality, retail, leisure, real estate and banking-related activities in Lebanon, said at the time that it suffered losses exceeding $1.7 billion.
"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.
The company said it intends to undertake the divestment "through a structured and commercially driven process, with each asset evaluated on its individual merits and transactions pursued in accordance with appropriate market conditions and valuations".
In February, Al Habtoor Group said it also appointed law firm White & Case to begin arbitration proceedings against Lebanon in the US.
The case is based on the dispute resolution mechanisms provided under the UAE-Lebanon bilateral investment treaty, Al Habtoor Group said at the time.
The group established its presence in Lebanon with the opening of its first hotel in 2001. It said it "has made substantial investments" since then and has remained committed to the country through successive periods of economic and political uncertainty.
The board’s latest decision "reflects a considered shift" in its investment strategy and its plan to concentrate resources on markets "offering greater long-term stability, investment certainty, and sustainable growth opportunities", it said.
Al Habtoor Group will announce further details regarding the divestment process, it added.
Lebanon has been mired in an economic crisis since 2019, one of the worst in modern history, according to the World Bank. The lender expects Lebanon's economy to contract by 6.4 per cent in 2026.
The country, which is heavily reliant on imports, is also struggling from the fallout of the Iran war, as it is more exposed to shocks such as the disruption to shipping and energy supplies.
The International Monetary Fund said last month that it was advancing discussions with Lebanon as part of broader efforts to support vulnerable countries in the Middle East and North Africa.
