JEDDAH: UAE-based Al Habtoor Group has chosen to sell all its assets and investments in Lebanon including hotels, commercial and residential properties, land holdings and other investments, an official statement said.
The decision comes after the group announced on Jan. 28 that it would stop its operations in Lebanon due to “prolonged instability, ongoing hostile campaigns, public attacks and defamatory actions against the group and its businesses, as well as the broader legal proceedings currently underway between the Group and the Lebanese government.”
The Dubai-based firm said in an earlier statement that the combined effect of these circumstances made it unsustainable to continue operations at this time. It also highlighted ineffective state decision-making and enough stability and protection, saying it had to halt what it called a continuing financial drain and lay off all personnel.
The group also said in January it would take legal action against Lebanon over outstanding investment disputes and losses it estimated at $1.7 billion, blaming the losses on banking restrictions and a failure by the state to intervene.
The losses were partly due to actions taken by Lebanese authorities and Banque du Liban that limited its ability to access and move cash held in Lebanese banks, and the broader political, economic and institutional turmoil in the nation, it added.
The new move is part of a strategic evaluation of the group’s portfolio of investments. The board has determined that a full divestment is the most appropriate course of action in keeping with our approach to investment management, capital allocation and the protection of our interests,” the statement stated.
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