Dubai-based conglomerate Al Habtoor Group has confirmed it will close all of its operations in Lebanon due to prolonged political and economic instability, mounting financial losses and an ongoing legal dispute with the Lebanese government.
In a statement issued on Wednesday, the Group said the decision followed a “comprehensive internal review” and came against the backdrop of “ongoing hostile campaigns, public attacks, and defamatory actions” directed at the company, alongside broader legal proceedings with the Lebanese state.
The move marks the end of a 25-year presence in Lebanon for the UAE-based group, which first entered the market in 2001 with the opening of its first hotel.
“Despite increasingly challenging circumstances, the Group has sought to preserve its operations, protect its employees, and safeguard its investments,” Al Habtoor Group said. “However, the cumulative impact of these factors has rendered the continuation of operations unsustainable at this time.”
Closure impacts the full workforce
The closure will include all of the Group’s activities in the country, including its hotels, and will result in the termination of all employees. The company said the decision was taken to halt ongoing financial losses and to protect its legal and commercial interests.
The announcement follows earlier warnings from the Group that it was considering legal action against Lebanon over losses estimated at $1.7 billion, linked to what it has described as state failure, institutional paralysis and the absence of basic investor protections.
Al Habtoor Group said it had continued operating through years of conflict, political upheaval and economic collapse, absorbing substantial financial and operational costs while continuing to meet its obligations to staff. It described its presence in Lebanon as guided by “partnership and responsibility, rather than short-term profit”, adding that it had treated the period as a humanitarian commitment as much as a commercial one.
“That approach, however, is no longer viable,” the statement said, pointing to deteriorating conditions, persistent institutional failure and the lack of meaningful structural reforms.
The Group said the closures form part of broader legal and operational measures being taken as part of the ongoing dispute with the Lebanese government, and confirmed it would continue to pursue all available legal avenues under international agreements and applicable legal frameworks.
Al Habtoor Group, founded in 1970 by Khalaf Ahmad Al Habtoor, is one of the UAE’s largest conglomerates, with interests spanning hospitality, real estate, automotive and education across the Middle East and internationally.
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