BEIRUT, February 29, 2024 – The Al Habtoor Group is pulling out of Lebanon, citing over $1.7 billion in losses and a deteriorating business climate,a move that underscores the deepening economic and political crisis gripping the nation. The Dubai-based conglomerate confirmed it’s fully reserving its rights and pursuing legal action as it shutters its operations.
Lebanese Instability Forces Major Investor Exit
The Al Habtoor Group’s departure highlights the challenges facing foreign investment in a country plagued by instability and legal disputes.
- The Al Habtoor Group’s decision follows a thorough internal review of its Lebanese operations.
- Prolonged instability, hostile campaigns, and ongoing legal battles with the Lebanese government contributed to the exit.
- The group initially invested in Lebanon in 2001,aiming for partnership and long-term commitment.
- The cumulative financial burdens and lack of state support ultimately made continued operations unsustainable.
The Al Habtoor Group’s decision to close its operations in Lebanon comes after a prolonged period of attempting to navigate a challenging environment. The group stated that despite efforts to protect employees and investments, the situation has become untenable. This decision is directly linked to ongoing instability, what the group describes as hostile campaigns, public attacks, and defamatory practices, and also current legal proceedings with the Lebanese government.
What factors led to Al Habtoor Group’s decision to leave Lebanon? The group attributes its exit to a combination of prolonged instability,hostile campaigns,legal disputes,and the Lebanese government’s failure to provide a stable and protective environment for businesses.
According to a statement released by the group, they maintained operations and supported their workforce for an extended period, even amidst increasing difficulties. As first establishing a presence in Lebanon with the opening of its first hotel in 2001, the Al Habtoor Group approached its investments with a focus on partnership and duty, rather than immediate profit. However, the cumulative effect of successive wars, crises, and a lack of official support has proven unsustainable.
The group emphasized that it bore significant operational and financial burdens during years of conflict,prioritizing its employees’ well-being even in the absence of adequate government assistance. Though, with the worsening situation, continued institutional failure, and a lack of viable solutions, the Al Habtoor group concluded that halting operations and laying off
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