In a significant blow to Lebanon’s struggling economy, the Al Habtoor Group announced today it is ceasing all operations in the country after over two decades of investment. Citing ongoing political and economic instability, and also what the company describes as hostile actions, the decision highlights the immense challenges facing businesses attempting to operate in the crisis-stricken nation. The move is expected to result in job losses and further constrict the limited foreign investment remaining in Lebanon [[3]].
The Al Habtoor Group has decided to cease operations in Lebanon, citing a deteriorating political and economic situation and ongoing hostility towards the company. The decision follows an internal review of the group’s investments in the country.
In a statement released today, the group cited “prolonged instability, continued hostile campaigns, public attacks, and smear practices directed against the Group and its businesses, as well as ongoing legal proceedings between Al Habtoor Group and the Lebanese government” as key factors in the decision. This move underscores the challenges facing foreign investment in Lebanon amid its ongoing crisis.
“For an extended period, the Group has been keen to maintain its operations, protect its employees, and preserve its investments despite the increasing challenges,” the statement read. “However, the cumulative impact of these factors has made continuing operations unsustainable at this time.”
Al Habtoor Group emphasized that despite the difficulty of the decision, it came after a long period of resilience and commitment. The company noted that since its entry into Lebanon and the opening of its first hotel in 2001, it has approached its investments and employees with a partnership and responsibility mindset, rather than focusing solely on immediate profit.
The statement continued, “Throughout years of wars and successive crises, the Group bore significant operational and financial burdens, continued to fulfill its obligations to its employees, and dealt with this stage as a humanitarian situation before it was a commercial one, in light of the absence of official decisions and the state’s failure to provide the minimum level of stability and necessary protection.”
However, the group stated that continuing this approach was no longer feasible. “With the worsening conditions, the continued institutional failure, and the lack of any radical solutions to address the existing imbalances, Al Habtoor Group finds itself compelled to decide to stop its operations in Lebanon, stop the continued drain of spending, and lay off all its employees, in order to protect its rights and interests, and prevent further unjustified depletion.”
The decision to halt all operations, including the closure of its hotels, is a “necessary legal and operational measure” within a package of steps the Group is taking to protect its rights and investments, and stakeholders associated with them, as part of the existing legal process, according to the statement. Al Habtoor Group affirmed its full retention of all its rights and its continued taking of appropriate legal measures, in accordance with international agreements and relevant legal frameworks.
تابعوا آخر أخبارنا المحلية والرياضية وآخر المستجدات السياسية والإقتصادية عبر Google news
