In a significant development for Lebanon's struggling economy, the Dubai-based Al Habtoor Group has announced it is permanently closing all its operations in the country and terminating the employment of its entire workforce. This drastic decision follows an escalating legal dispute with Lebanese authorities and comes against the backdrop of prolonged economic instability.
Legal Dispute and Investment Losses
The announcement, made on Wednesday 28 January 2026, comes just two days after the conglomerate revealed plans to take legal action against Lebanese authorities. Al Habtoor Group claims to have suffered investment losses amounting to a staggering $1.7 billion, which it attributes to the ongoing crisis in Lebanon.
Economic Meltdown and War Damage
Lebanon has been grappling with its worst economic crisis since late 2019, which has severely impacted both individuals and businesses. The meltdown has trapped substantial funds within the banking sector, making them inaccessible to depositors and companies alike. Furthermore, the country suffered extensive damage during the 14-month Israel-Hezbollah conflict, which concluded with a ceasefire in November 2024. The World Bank has estimated that reconstruction and recovery efforts will cost approximately $11 billion.
Statement from Al Habtoor Group
In an official statement, Al Habtoor Group explained that its decision was driven by "prolonged instability, ongoing hostile campaigns, public attacks and defamatory actions directed at it and its businesses." The group also cited the broader legal proceedings currently underway between itself and the Lebanese government as a contributing factor.
"Al Habtoor Group 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," the statement read. It emphasised that this move was necessary to protect the company's interests and prevent further "unjustified losses."
Operations in Lebanon
The conglomerate's Lebanese portfolio includes several notable ventures. Among these are a hotel located in a Beirut suburb and Habtoor Land, a large theme park situated east of the Lebanese capital. Interestingly, just last year, the group reversed its plans to dismantle the Metropolitan Palace Hotel in Beirut, indicating a previous intention to maintain some presence in the country.
Response and Impact
Officials at Al Habtoor Group's Beirut offices have declined to comment on the exact number of employees affected by the layoffs, referring all inquiries to the company's headquarters. As of the announcement, the headquarters had not responded to requests for further details. Similarly, officials at Lebanon's prime minister's office were not immediately available for comment.
This withdrawal represents a significant blow to Lebanon's already fragile business environment, highlighting the severe challenges facing international investors in the crisis-hit nation. The loss of Al Habtoor Group's operations and employment opportunities will likely have ripple effects across the local economy, particularly in the hospitality and entertainment sectors where the company had established a presence.
