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Dubai's Al Habtoor Group announces closure of Lebanon operations, terminates all workers
Earlier this week, it threatened to take legal action against the Lebanese government and the Banque du Liban for violating agreements, pushing its operations into the red
- PUBLISHED: Wed 28 Jan 2026, 12:29 PM
- By:
- Waheed Abbas
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Dubai’s Al Habtoor Group on Wednesday announced the closure of its operations in Lebanon following massive losses amounting to Dh6.24 billion and “deteriorating conditions” in the Arab country.
Earlier this week, it threatened to take legal action against the Lebanese government and the Banque du Liban for violating agreements, pushing its operations into the red.
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Al Habtoor Group has invested hundreds of millions of dirhams in Lebanon’s various sectors, including hospitality, retail, leisure, real estate, and banking-related activities.
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Al Habtoor Group established its presence in Lebanon with the opening of its first hotel in 2001. The decision to cease all of the group’s activities, including the closure of its hotels, constitutes a necessary legal and operational measure.
The company said the decision has been taken due to “prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions directed at the group and its businesses".
It added that broader legal proceedings are currently underway between the group and the Lebanese government.
Founded and headed by billionaire Khalaf Al Habtoor, the group said that it tried to preserve its operations, protect jobs, and safeguard its investments in Lebanon despite increasingly challenging circumstances. “However, the cumulative impact of these factors has rendered the continuation of operations unsustainable at this time.”
In January 2025, the Emirati investor said it made a "painful" decision to cancel all investment projects in Lebanon and sell all his current properties due to challenges in the Arab country.
Khalaf Al Habtoor said earlier that the country was still not safe and that he had been threatened with being "slaughtered and killed" in 2024.
'Condition continues to deteriorate'
The group earlier said that it “has exhausted all reasonable and good-faith efforts to resolve the dispute amicably with the Lebanese authorities.
“Throughout years marked by successive wars and crises, the group absorbed substantial operational and financial burdens, honoured its obligations to its employees, and treated this period as a humanitarian responsibility before a commercial one, despite the absence of effective state decision-making and the failure to provide the minimum levels of stability and protection required.”
Al Habtoor Group cautioned that as conditions continue to deteriorate, institutional failure persists, and no meaningful or structural solutions emerge to address the underlying deficiencies, it finds itself compelled to make the decision to cease its operations in Lebanon and halt the ongoing financial drain, and proceed with the termination of all employees.
“This decision has been taken in order to protect the group’s rights and interests and prevent further unjustified losses.”
