Al Habtoor Group announced on Monday that it has decided to sell all of its assets and investments in Lebanon, including its hotels, commercial and residential properties, and land holdings.
The decision follows the group’s announcement on January 28 that it would cease operations in Lebanon, and marks the next phase of a wider strategic review of its investment portfolio and long-term priorities.
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The board concluded that complete divestment was the most appropriate course, in line with its commitment to responsible investment management, capital allocation and the protection of its interests.
The group said it will carry out the sale through a structured, commercially driven process. Each asset will be assessed on its individual merits, and transactions will be pursued in line with market conditions and valuations. It added that further details on the process will be announced as appropriate.
Lebanon’s political and investment outlook remains challenging amid renewed conflict, political divisions and delays in economic reforms.
The World Bank projected the economy would contract by 6.4 per cent in 2026. Although the government has advanced banking reforms and is seeking IMF support, investor confidence remains weak.
From closure to divestment
In January, the Dubai-based group announced the closure of its Lebanon operations after losses of Dh6.24 billion and what it described as deteriorating conditions in the country. It said it would also terminate all employees there to protect its rights and interests and prevent further losses.
At the time, the group said it reserved all of its rights and would continue to take appropriate legal measures under applicable international agreements and legal frameworks.
Al Habtoor Group began investing in Lebanon in the late 1990s, putting money into hospitality, real estate, leisure and other sectors, contributing to the country’s tourism infrastructure, economic activity and employment.
The group opened its first hotel in Lebanon in 2001 and invested hundreds of millions of dirhams across hospitality, retail, leisure, real estate and banking-related activities. The group said it kept investing in and maintaining its properties through successive periods of economic and political uncertainty.
The group described the latest decision as a considered change in investment strategy, aimed at concentrating resources on markets offering greater long-term stability, investment certainty and sustainable growth.
Source: Khaleej Times