Khalaf Al Habtoor, chairman of Al Habtoor Group, says the project is expected to create thousands of jobs in Lebanon. Antonie Robertson / The National
Khalaf Al Habtoor, chairman of Al Habtoor Group, says the project is expected to create thousands of jobs in Lebanon. Antonie Robertson / The National

UAE businessman Khalaf Al Habtoor plans mega-project investment in Lebanon



Khalaf Al Habtoor, chairman of UAE-based conglomerate Al Habtoor Group, has said he plans to invest in a “large and ambitious” project in Lebanon once the new government is formed.

The initiative “has a vision to contribute to the economic renaissance and provide thousands of jobs, to be a real addition to support the Lebanese economy and restore confidence in it”, Mr Al Habtoor said in a message posted on X on Thursday.

However, he did not provide details on what kind of project the company is looking at, nor the size of the investment. But Mr Al Habtoor said any new investment “will depend primarily on the correct formation of this government”.

Earlier this month, Lebanon’s Parliament elected army chief Joseph Aoun as the country's president − ending a power vacuum since 2022.

Following the election, Mr Aoun, nominated Nawaf Salam, as the new prime minister and entrusted him the responsibility to form a new government.

They face the challenging task of pulling the nation out of a severe economic crisis. This began five years ago, when Lebanon defaulted on about $31 billion of international bonds payment.

The recent war in the country between Iran-backed Lebanese group Hezbollah and Israel has further damaged the economy. Physical damage and economic losses due to the conflict are estimated at $8.5 billion, according to a World Bank report in November.

Financial reforms are necessary in Lebanon to unlock $3 billion of assistance from the International Monetary Fund, as well as billions in aid from other international donors.

Pedestrians on the Corniche Beirut. Lebanon's economy has been in turmoil for the past five years. EPA

The formation of government is a “pivotal moment and a golden opportunity to make Lebanon an attractive destination for investments, and to open a new page of economic and social development”, Mr Al Habtoor said in his post.

“Any leniency in the formation or acceptance of subordination will only lead to the continuation of the crisis and will close the doors of investment and renaissance to Lebanon and its people.”

Last year, Al Haboor Group issued a formal notice against Lebanon for breaching its bilateral investment treaty with the UAE and preventing the group from freely transferring its funds, amounting to more than $44 million, from the Lebanese banks.

The conglomerate at the time said it has invested close to $1 billion in Lebanon. These investments covered various sectors, including funds placed within the Lebanese banking system, luxury hotels affiliated with Hilton Hotels and Resorts, a shopping mall, a 100,000-square-metre leisure destination called Habtoor Land and other property ventures.

Updated: January 23, 2025, 1:40 PM