The UAE-headquartered Al Habtoor Group, one of the region’s largest conglomerates in the region, has taken the decision to proceed with the closure of its operations in Lebanon in light of the prevailing conditions in the country, and following a comprehensive internal review.

“This decision comes against the backdrop of prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions directed at the group and its businesses, as well as the broader legal proceedings currently underway between the group and the Lebanese Government,” said an Al Habtoor statement.

“Over an extended period, the group has sought to preserve its operations, protect its employees, and safeguard its investments despite increasingly challenging circumstances. However, the cumulative impact of these factors has rendered the continuation of operations unsustainable at this time,” it said.

Notwithstanding the difficulty of this decision and its human and professional implications, it follows a long history of resilience and commitment. Since Al Habtoor group first established its presence in Lebanon with the opening of its first hotel in 2001, the group has approached its investments and its workforce with a philosophy grounded in partnership and responsibility, rather than short-term profit, it noted. 

“Throughout years marked by successive wars and crises, the group absorbed substantial operational and financial burdens, honoured its obligations to its employees, and treated this period as a humanitarian responsibility before a commercial one, 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. As conditions continue to deteriorate, institutional failure persists, and no meaningful or structural solutions emerge to address the underlying deficiencies, 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. This decision has been taken in order to protect the group’s rights and interests and prevent further unjustified losses,” the statement said.

“The decision to cease all of the group’s activities, including the closure of its hotels, constitutes a necessary legal and operational measure. It forms part of the broader actions adopted by the group to protect its rights, investments, and stakeholders, within the framework of the ongoing legal process. Al Habtoor Group affirms that it fully reserves all of its rights and will continue to take all appropriate legal measures in accordance with applicable international agreements and legal frameworks,” it said.

In a previous statement on Monday, the group said its "investments have suffered severe and sustained harm as a direct result of measures and restrictions imposed by Lebanese authorities and the Banque du Liban, which have prevented the group from freely accessing and transferring lawfully deposited funds held in Lebanese banks".

The group said it had exhausted efforts to resolve the dispute amicably and would proceed with legal action over damage to its assets and properties in Lebanon, which it said exceeded $1.7 billion. - TradeArabia News Service