Al-Habtoor Group announces 'closure of all its operations' in Lebanon

BEIRUT — The al-Habtoor Group, owned by Emirati businessman Khalaf al-Habtoor, announced Wednesday the closure of all its operations in Lebanon, citing "the deterioration of political, economic, and security conditions in the country."

"As conditions continue to worsen, institutional failures persist, and no meaningful or structural solution emerges to address the underlying shortcomings, al-Habtoor Group finds itself forced to end its operations in Lebanon, stem the ongoing financial hemorrhage, and proceed with the termination of all its employees contracts," reads the statement published on X.

The group also justified its decision by stating that it had been targeted by "hostile campaigns, public attacks, and defamatory actions against its activities." "Despite sustained efforts to maintain its investments, protect its employees, and absorb significant financial losses, al-Habtoor believes that continuing its activities has become untenable," the statement reads.

Contacted by our publication, two sources within the group in Lebanon indicated, however, that no official internal communication has been made regarding this decision so far.

Threats of legal action against the Lebanese government

This announcement comes in the wake of legal threats made Monday by Khalaf al-Habtoor against the Lebanese government and Banque du Liban (BDL), accused of"'causing, through their decisions, investment losses exceeding $1.7 billion [6.24 billion dirhams]."

The al-Habtoor Group specified in its latest statement that the cessation of its activities "is part of a broader legal and operational framework," while affirming that it "will pursue the legal steps it deems necessary as part of the ongoing proceedings."

Present in Lebanon since 2001, especially in the hospitality sector, the al-Habtoor Group had invested for years in various sectors in Lebanon, including hospitality, retail, and real estate. It had even built an amusement park in Baabda, now defunct.

Khalaf al-Habtoor, founder and chairman of the group's board of directors, is known for his harsh statements against Hezbollah. He has multiplied his public stances since the election of President Joseph Aoun in January 2025, at times rallying enthusiasm over Lebanese leaders' renewed willingness to launch reforms stalled since 2019, or denouncing, among other things, the grip of the Iranian-backed Shiite party on the country's governance.

In January 2025, Habtoor announced he had made the "painful" decision to cancel all investment projects in Lebanon and to sell all his real estate assets in the country, due to the challenges faced by the state.

Then, in September of the same year, he announced his return to Lebanon, promising a new wave of investments in the country after being received by President Joseph Aoun and Prime Minister Nawaf Salam.