UAE’s Al Habtoor Group to sell all assets in Lebanon: What to know

Al Habtoor Group has decided to sell all its assets and investments in Lebanon, including hotels, commercial and residential properties and land, the Dubai-based conglomerate said on Monday.

What happened: The decision, approved by the group’s board of directors, marks Al Habtoor Group's complete withdrawal from a market it has been investing in since the late 1990s.

On Jan. 28, the company announced that it had suspended operations in Lebanon, citing losses exceeding $1.7 billion due to the country's financial crisis, capital controls and security concerns. The move was part of a broader strategic review of Al Habtoor Group’s investment portfolio and long-term business priorities.

In a statement, Habtoor Group said its Lebanese investments were worth billions but declined to disclose specific valuations because negotiations were underway with several potential buyers and investors.

The company said the sale would be conducted in a structured process, with each asset assessed independently and transactions determined by market conditions and fair valuations.

The group said that the decision followed a comprehensive review of its investment portfolio and was aimed at protecting the company’s interests and ensuring “responsible investment management.”

Why it matters: Founded in 1970, Al Habtoor Group is one of the UAE’s biggest conglomerates, focusing on infrastructure, mining, railways, real estate, oil and gas. 

The group is a major investor in Lebanon. Among its assets is the Habtoor Grand Convention Centre & Spa in Beirut, a 31-story luxury property. Al Habtoor Group also owned the 185-room Metropolitan Palace Hotel in the Lebanese capital.

The company’s decision to exit Lebanon comes at a time when Emirati-Lebanese economic ties are resetting. In August, a high-level business delegation led by UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi went on two-day visit to Beirut, during which several memoranda of understanding were signed, signaling a rapprochement between the two countries after years of strained relations.

The UAE had historically been a strong economic partner for Lebanon until ties deteriorated in tandem with the growing influence of Iran-backed Hezbollah after the 2005 assassination of former Prime Minister Rafik Hariri, an ally of the UAE and other Gulf states who had been working on plans for Lebanon's reconstruction with Gulf support.

However, Lebanon’s continued instability has deterred many foreign investors. The country’s economy began collapsing in August 2019 when the central bank ran out of US dollars, triggering mass protests, banking lockouts and hyperinflation. Due to the shortage of dollars, many businesses were unable to pay their international suppliers. The Lebanese pound lost more than 98% of its value. 

The economy has still not recovered, despite showing tentative signs of stabilization and modest growth last year. In 2025, Lebanon’s economy experienced a brief reprieve, posting 4.2% real GDP growth, its strongest performance since the 2019 financial collapse. 

However, the escalation of the Israel-Hezbollah war on the country’s southern border erased these fragile gains, and in August the World Bank projected that Lebanon’s economy would shrink by 6.4% this year.

Inflation remains in the double digits, standing at 17.5% in September, up from 16.66% in August and 15.59% in July, according to official data.

Poverty levels also remain high. Around 44% of the country live in monetary poverty and nearly 80% in multidimensional poverty, meaning they are deprived of basic services like healthcare, education or electricity, according to the World Bank.