Emirati Billionaire Al Habtoor Withdraws from Lebanon, Cites Economic and Political Concerns

By Malak Khaled

Emirati Billionaire Khalaf Ahmad Al Habtoor, the head of the Al Habtoor Group, has made the decision to cancel all planned investments in Lebanon and sell his properties, citing the country’s ongoing instability.

The businessman expressed his concerns on Tuesday, highlighting the continuing unrest in Lebanon and its implications for foreign investment. The loss of investments in Lebanon is significant, as the group’s investments were valued at $1 billion as of January 2024.

Unrest and Sectarian Tensions in Lebanon

Al Habtoor condemned the growing influence of armed militias in Lebanon, stating that their dominance and the lack of rule of law make it impossible for investors to operate with confidence.

According to Al Habtoor, the protests organized by Hezbollah supporters, including in Christian-majority areas of Beirut, have also fueled sectarian tensions and further prove the instability of the country. ”We thought that the state had begun to regain its role and prestige, but the painful reality tells us otherwise.”

Financial Losses and Legal Action

Another reason for Al Habtoor’s decision is that Al Habhoor Group has also faced significant financial challenges due to restrictions imposed by Lebanon’s Central Bank, preventing the transfer of funds.

He revealed that these actions resulted in losses exceeding $1.4 billion. In response, the group has filed legal action against Lebanon in international courts in London and New York, continuing to seek compensation. 

The Gulf States’ Position on Lebanon

The influence of Hezbollah on State matters has led to the Gulf countries like Saudi Arabia and the UAE distancing themselves from Lebanon for years.

Although the UAE recently reopened its embassy in Lebanon, Al Habtoor’s stance reflects a broader regional skepticism.

Lebanon’s future cooperation with Gulf states will depend on the formation of a new government, as indicated by Lebanese President Joseph Aoun.

Al Habtoor’s decision underscores the severe challenges facing Lebanon amid ongoing political instability and the dominance of armed militias. Without significant reforms and a new government committed to stabilizing the country, hopes for foreign investment and economic recovery remain uncertain.

WE SAID THIS: Don’t Miss… Lebanon Dominates Global Economic Diversification Index 2024 In MENA