Al Habtoor Group board approves sale of all assets and investments in Lebanon

Show caption: Khalaf Al Habtoor, chairman and founder of Al Habtoor Group.…

Company said in January that it was ceasing all operations in the country

• Al Habtoor Group's board has approved the full sale of all its assets and investments in Lebanon following a cessation of operations.
• The Dubai-based conglomerate reported losses exceeding $1.7 billion from its Lebanese investments spanning hospitality, retail, real estate and banking.
• The group appointed law firm White & Case to pursue arbitration proceedings against Lebanon in the US, citing the UAE-Lebanon bilateral investment treaty.
• Lebanon's economy is expected to contract by 6.4 per cent in 2026, compounded by an ongoing economic crisis the World Bank describes as one of the worst in modern history.
• The divestment "reflects a considered shift" in the conglomerate's investment strategy, with its board seeking markets "offering greater long-term stability, investment certainty, and sustainable growth opportunities".

Dubai-based Al Habtoor Group said its board of directors has approved the sale of the company's assets and investments in Lebanon, after it ceased operations in the country.

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 Dubai-headquartered 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 in a statement 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 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", the latest statement 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 with the impact 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.

Updated:

November 02, 2026, 9:15 AM