Al Habtoor Group Board Approves Sale of All Its Assets and Investments in Lebanon

The holdings include hotels, commercial and residential properties and land, according to Khaleej Times. The group said it would run the sale "through a structured and commercially driven process," assessing each asset on its own merits and pursuing transactions in line with market conditions and valuations. It said further details would follow.

Gulf News reported that the group described its Lebanese investments as worth billions but declined to give valuations because it is negotiating with several potential investors and buyers.

From Shutdown to Divestment

On 28 January, Al Habtoor Group said it was ceasing operations in Lebanon and would terminate its employees there, citing "prolonged instability" and an investment dispute, according to The National. It said at the time that it had lost more than $1.7 billion. Khaleej Times put the losses at Dh6.24 billion. In February, the group said it had appointed law firm White & Case to begin arbitration against Lebanon in the United States under the dispute resolution mechanisms of the UAE-Lebanon bilateral investment treaty.

The group began investing in Lebanon in the late 1990s and opened its first hotel there in 2001. It later expanded into hospitality, retail, leisure, real estate and banking-related activities. The company said it kept investing in and maintaining its properties through repeated periods of economic and political uncertainty.

The board called the decision "a considered shift" in investment strategy and said the group would focus on markets "offering greater long-term stability, investment certainty, and sustainable growth opportunities".

Lebanon's Economic Backdrop

Lebanon has been in an economic crisis since 2019, which the World Bank describes as one of the worst in modern history. The lender expects the economy to shrink by 6.4 percent in 2026. The National noted that the import-dependent country is also exposed to fallout from the Iran war, including disruption to shipping and energy supplies. The International Monetary Fund said last month that it was advancing discussions with Lebanon.

Why It Matters

Al Habtoor Group has been one of the most prominent Gulf investors in Lebanon's hospitality sector for more than two decades. A full exit by a group of this size is a clear sign of how Gulf private capital currently views the country's risks. The pending treaty arbitration adds a legal dimension that other regional investors with Lebanese exposure will watch. For buyers, a sale of hotels and prime property through individual asset deals may offer entry points. Pricing will depend on Lebanon's reform path and how its security situation develops.