Al Habtoor Group to Exit Lebanon Amidst Instability & Legal Disputes
The Al Habtoor Group has decided to proceed with closing its operations in Lebanon, citing the prevailing conditions within the country and following a comprehensive internal review. This decision marks a significant shift for the group, which has maintained a presence in Lebanon since 2001.
Business Challenges and Hostile Actions
According to a statement released by the group, the decision stems from a prolonged period of instability, ongoing hostile campaigns, public attacks, and smear practices directed against the group and its businesses. These challenges are compounded by current legal proceedings between the Al Habtoor Group and the Lebanese government.
Years of Commitment Despite Difficulties
The Al Habtoor Group emphasized its long-standing commitment to Lebanon, stating that it has worked to preserve its operations, protect its employees, and safeguard its investments despite increasing challenges. However, the cumulative effect of these factors has made continued operations unsustainable.
A Shift from Partnership to Protection
The group affirmed that, despite the difficulty of the decision and its professional and human implications, it followed a long period of resilience and commitment. Since its initial investment in Lebanon, the Al Habtoor Group has approached its investments and employees with a spirit of partnership and responsibility, rather than focusing solely on immediate profit.
Over years of wars and successive crises, the group bore significant operational and financial burdens, continuing to fulfill its obligations to its employees. This approach was characterized as a humanitarian response, particularly given the absence of official decisions and the state’s failure to provide minimal stability and protection.
Unsustainable Financial Strain
However, the group stated that continuing this approach is no longer feasible. With deteriorating conditions, continued institutional failure, and a lack of fundamental solutions to address existing imbalances, the Al Habtoor Group found itself compelled to halt its operations in Lebanon, stop ongoing financial losses, and lay off all its employees to protect its rights and interests and prevent further unjustified depletion.
Legal and Operational Measures
The decision to cease all operations, including the closure of its hotels, is described as a necessary legal and operational step within a package of measures the group is taking to protect its rights, investments, and stakeholders, as part of the ongoing legal process. The Al Habtoor Group confirmed its full retention of all its rights and its continued pursuit of appropriate legal action in accordance with international agreements and relevant legal frameworks.
Frequently Asked Questions
What prompted the Al Habtoor Group’s decision to leave Lebanon?
The decision was prompted by a combination of prolonged instability, hostile campaigns against the group, and ongoing legal proceedings with the Lebanese government, making continued operations unsustainable.
How long has the Al Habtoor Group been operating in Lebanon?
The Al Habtoor Group has been operating in Lebanon since 2001, beginning with the opening of its first hotel.
What actions will the Al Habtoor Group take to protect its interests?
The group will cease all operations, including closing its hotels, and pursue legal action to protect its rights, investments, and stakeholders.
What impact might this decision have on other foreign investments in Lebanon?