Al-Habtoor Group, a major business entity, has signaled its readiness to exit Lebanon if the country’s government fails to safeguard its investments.
Khalaf Al-Habtoor, the chairman, expressed dissatisfaction with Lebanon's economic conditions. He indicated that the company might resort to international legal firms to recoup assets if necessary.
In a letter to Prime Minister Najib Mikati, Al-Habtoor voiced concerns over the jeopardy facing Gulf investments in Lebanon, citing unauthorized appropriation of funds by Lebanese banks amidst the country's socio-political unrest.
Discussing divestment, Al-Habtoor mentioned willingness to sell his Lebanese investments if a reasonable offer arises. The previously flourishing "Switzerland of the Middle East" is now in turmoil, with dire financial straits, political instability, and a tense border conflict.
Lebanon's dismal economic state has left Al-Habtoor Group's billion-plus investment in dire straits, impacting 500 employees. Despite adverse conditions, the group reopened two hotels to support local employment but acknowledged ongoing losses.
With the Lebanese economy in crisis since 2019, exacerbated by
COVID-19 and the Beirut blast, the future looks bleak. Confidence in Lebanon's financial system wanes, and the Lebanese banks’ recent legal notice to reclaim $68 billion from the government adds to the country's economic woes.
Serving as a reality check on the severity of Lebanon's economic state, Al-Habtoor's potential departure underscores the urgent call for reforms and government action to stabilize the country and protect foreign investments.