Why UAE-Based Al Habtoor Group Is Selling All Its Assets in Lebanon

One of the Gulf’s best-known business groups is preparing to leave Lebanon for good. Dubai-based Al Habtoor Group has announced that it will sell all of its assets and investments in the country, closing a chapter that began more than two decades ago. The move follows months of public friction with Lebanese authorities and a legal fight over money the group says it cannot reach.

What the Group Plans to Sell

According to an official statement, the sale covers the group’s hotels, commercial and residential properties, land holdings, and other investments in Lebanon. The company said its board reviewed the portfolio and concluded that a full exit is the most suitable path. That conclusion, it said, fits with its approach to managing investments, allocating capital, and protecting its interests.

The group said the sale will be handled in a structured way. Each asset will be assessed on its own merits, and deals will be pursued in line with market conditions and valuations. It added that further details of the process will be shared in due course.

A Decision Months in the Making

The announcement builds on an earlier statement from January 28, when the group said it would stop operating in Lebanon. At that time, it pointed to prolonged instability, hostile campaigns, public attacks, and defamatory actions aimed at the group and its businesses. It also cited the legal proceedings now under way between the group and the Lebanese government.

The conglomerate said the combined effect of these factors had made continued operations unsustainable. It also pointed to the lack of effective decision-making by the state and what it called inadequate stability and protection. The group described its Lebanese operations as an ongoing financial drain, and said it had been forced to halt activity and terminate all employees.

The $1.7 Billion Dispute

Money sits at the heart of the disagreement. In January, the group said it would take legal action against Lebanon over unresolved investment disputes and losses it estimates at $1.7 billion.

Part of that figure, the group explained, comes from measures taken by Lebanese authorities and the central bank, Banque du Liban. These steps blocked the group from accessing and moving funds it had deposited in Lebanese banks. Since the country’s financial crisis took hold, many depositors, local and foreign, have faced similar limits on withdrawals and transfers. The group also blamed Lebanon’s wider political, economic, and institutional troubles, along with what it described as inaction by the state.

Hotels in the Heart of Beirut

Al Habtoor Group first set up in Lebanon in the late 1990s, putting money into hospitality, real estate, leisure, and other areas. Its best-known holdings are two Beirut hotels: the Metropolitan Palace Hotel and the Al Habtoor Grand Hotel. The two properties operate side by side as a single complex called Al Habtoor City Beirut.

The group said it kept its investments and properties running through repeated periods of economic and political uncertainty. In its view, that commitment supported Lebanon’s tourism infrastructure, economic activity, and job market. The planned sale will bring that long presence to an end.

A Change in Investment Direction

Beyond the dispute itself, the company framed the decision as a shift in strategy. It said it wants to focus its resources on markets that offer greater long-term stability, certainty for investors, and sustainable growth. The group added that it will keep looking at international opportunities that match its long-term goals.

This reasoning reflects a wider pattern among investors in unsettled markets. When legal protection, access to capital, and political stability are in doubt, companies often decide that the cost of staying outweighs the benefits, even where they have deep roots.

What It Means for Lebanon

The departure is likely to be felt in several ways. For a country that has struggled to attract and keep foreign investment, the loss of a prominent Gulf investor sends an unwelcome signal. Tourism and hospitality are among the few sectors that have shown some resilience in Lebanon, and Beirut’s hotel scene is a visible part of that picture.

There are also questions about the workforce. The group has already said it terminated all employees in Lebanon, so the effects on jobs have largely been felt. What remains uncertain is who might buy the assets, and at what price. Buyers will weigh the value of prime Beirut real estate against the country’s financial and political risks, and that calculation could shape offers considerably.

The legal dispute is another open point. The group has said it intends to pursue its claims against the Lebanese state, and selling its assets does not necessarily end that effort. How the proceedings unfold may influence how other foreign investors view Lebanon in the months ahead.

What to Watch Next

• Buyer interest: Who steps forward for the Beirut hotels and other holdings will reveal how the market values Lebanese property today.
• Sale terms: Prices and structure will show how much discount, if any, the group accepts to leave.
• Legal proceedings: The group’s claims against the government may continue regardless of the sale.
• Government response: Any move by Lebanese officials to address the dispute could affect investor confidence more broadly.

Al Habtoor Group has said it will announce more details of the sale as the process moves forward.

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