In a surprising move, the Al Habtoor Group announced the closure of its operations in Lebanon due to what it described as ongoing “hostile campaigns” that have severely impacted the business environment. This decision highlights the challenges faced by international companies amid the current circumstances in Lebanon, where the country is experiencing increasing political and economic instability.
Reasons for the Decision
The Al Habtoor Group decided to proceed with the closure of its operations in Lebanon, attributing this to the prevailing conditions in the country after conducting a comprehensive internal review. The group stated in a press release that this decision comes against the backdrop of prolonged instability, ongoing hostile campaigns, public attacks, and defamatory practices directed against the group and its businesses, as well as the ongoing legal actions between the Al Habtoor Group and the Lebanese government.
Implications of Closing Operations
The statement noted: “Over an extended period, the group has strived to maintain its operations, protect its employees, and safeguard its investments despite increasing challenges. However, the cumulative impact of these factors has made the continuation of operations unsustainable at this time.” Regarding the impact of this decision, the statement confirmed that the Al Habtoor Group will lay off all its employees as a necessary measure to protect its rights and interests.
Al Habtoor’s History in Lebanon
The Al Habtoor Group reaffirmed that “despite the difficulty of this decision and its human and professional implications, it came after a long journey of resilience and commitment.” Since the group’s establishment in Lebanon and the opening of its first hotel in 2001, it has approached its investments and employees with a sense of partnership and responsibility, rather than a focus on immediate profit.
Next Steps
The group added, “Throughout many years of wars and successive crises, the group has borne significant operational and financial burdens and continued to meet its commitments to its employees.” However, the Al Habtoor Group emphasized that this approach is no longer feasible, as it finds itself compelled to make the decision to halt its operations in Lebanon and end this challenging phase. It clarified that the decision to cease all its activities, including the closure of its hotels, is a necessary measure to protect its rights and investments, and it confirmed its commitment to taking appropriate legal actions.