A major Beirut hotel, owned by the UAE-based Al Habtoor Group, has reopened.
It closed after suffering severe damage in Beirut's port blast that killed more than 215 people on August 4, 2020.
Group chairman Khalaf Al Habtoor, a prominent UAE businessman, said he was hopeful that the nearby Le Mall Sin El Fil in Beirut could also reopen soon, after closing in March 2020 amid Lebanon’s economic downturn.
The five-star Hilton Beirut Metropolitan Palace welcomed visitors back on December 30 in the Beirut suburb of Sin El Fil.
Writing on Twitter, Mr Al Habtoor said he loved Lebanon and was “very disturbed by the deteriorating economic conditions”. He added that part of his desire to get the hotel running again was to support hundreds of families.
Al Habtoor Group also owns the adjacent Hilton Beirut Habtoor Grand, which only briefly closed after the 2020 explosion.
Le Mall Sin El Fil, part of a wider chain in the country, had closed in the months after Lebanon’s economic collapse had first become apparent.
The building was owned by Al Habtoor, but leased and operated by Acres Development, itself a subsidiary of retail group Azadea. Acres Devlopment still operates two Le Mall branches in Dbayeh, just north of Beirut, and in the southern city of Saida.
“The decision comes amid deteriorating economic conditions in Lebanon which have negatively impacted household spending in a wide range of sectors, coupled with a difficulty importing from abroad, in light of the financial crisis, and a lack of bank facilitations,” Acres had said in 2020 when it announced the closures.
Al Habtoor Group said at the time that it respected the decision by parent firm Azadea, adding that the move “is at the sole discretion of Azadea Group, as investor of the mall. This is a decision taken by the Azadea Group’s management and is not related to the rent of the premises”.
The explosion, Lebanon’s financial downturn and the Covid-19 pandemic meant that the country’s hospitality sector has taken a severe hit in recent years.
The Phoenicia Hotel, arguably Beirut’s most famous, reopened last September after closing following the pandemic.
An economic crisis that first became apparent in 2019 has pushed many into poverty in Lebanon and severely affected the average persons spending power. Inflation is rampant but wages have not adjusted, with the local currency losing more than 95 per cent of its value against the US dollar on the parallel market in import-dependent Lebanon.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
