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DUBAI: UAE-based business conglomerate Al-Habtoor Group has abandoned its plans to reenter the Lebanese market, citing ongoing “unrest and instability” caused by armed militias.

In a statement issued on Tuesday, Khalaf Al-Habtoor, chairman of the group, explained that recent developments had deeply shaken his optimism.

“My team and I had been diligently preparing to launch new projects and expand existing investments in Lebanon, encouraged by promising signs such as the election of Gen. Joseph Aoun as president and the nomination of Nawaf Salam as prime minister. Both individuals embody integrity, credibility, and respect, instilling renewed hope among the Lebanese people — and investors like myself — for the country’s future,” the statement read.

However, he said that the continued dominance of armed militias, particularly what he described as “Shiite militias”, and the “absence of rule of law” have made it impossible for investors to proceed with confidence.

Tensions escalated with Hezbollah supporters holding rallies in Beirut, including in Christian-majority neighborhoods, further raising sectarian divisions. The protests followed the return of Shiite residents to southern Lebanon after a ceasefire between Israel and Hezbollah was recently extended.

In his statement, Al-Habtoor lamented the lack of decisive action from Lebanese authorities, including the army and the Ministry of Defense, in addressing these disturbances, noting that the situation was only worsening.

Unless the new government takes a firm stance against those working to destabilize the country, hopes for a “new Lebanon” will remain unfulfilled, he said.

Al-Habtoor clarified that the decision to pull out was made after careful analysis and close monitoring of the situation. As a result, neither he, his family, nor any group managers would be traveling to Lebanon.

Earlier this month, and following the wave of optimism that followed the election of President Aoun and Prime Minister Nawaf Salam, Al-Habtoor told Arab News in an interview that his group intended to move forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.

The group, a multibillion-dollar global conglomerate, has diverse interests spanning luxury hotels, shopping malls, and more. As of January last year, its investments in Lebanon were estimated at around $1 billion.

RIYADH: Saudi construction firm Ladun Investment Co. expects a surge in Makkah’s real estate sector following a key ruling by the market regulator allowing foreign investment in Saudi-listed companies owning property in the holy cities. 

In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hassan Al-Hazmi, CEO of the Tadawul-listed firm, emphasized that the new regulations are poised to drive investor confidence in Makkah’s market, which has faced stagnation in recent years. 

On the event’s opening day, the Kingdom’s Capital Market Authority announced that the Makkah and Madinah real estate markets will now be open to foreign investors. However, investments are limited to shares or convertible debt instruments of listed companies, with total non-Saudi ownership — individuals and legal entities — capped at 49 percent of a company’s shares. 

The decision is expected to enhance the competitiveness of Saudi Arabia’s capital market and support the Vision 2030 economic diversification agenda. 

“As Mohammed El-Kuwaiz, chairman of the CMA, mentioned yesterday (Jan. 27), the regulations have been studied for more than three years. He said they were supposed to be approved two years ago but were delayed to make them more holistic. There is now a big study regarding foreign investors having ownership in Makkah, Madinah, and the Kingdom as a whole,” said Al-Hazmi. 

He said Ladun is focused on Makkah and anticipates growth. “We already manage and own assets in Makkah worth more than SR3.2 billion ($853.1 million).” 

Al-Hazmi noted that Makkah’s real estate sector had faced stagnation since 2014, particularly due to the impact of COVID-19 on religious tourism and travel. However, he believes that the sector is on the brink of recovery. 

“We already see signs of recovery — companies owning assets in Makkah are experiencing a rise in their share prices. This is very positive, and we anticipated this shift and planned accordingly,” he added. 

Ladun is also focused on localizing its workforce and increasing Saudi employment opportunities, aligning with government initiatives. 

“Just today, we signed an agreement with the Ministry of Municipal and Rural Affairs and Housing regarding human capital and how we are going to localize more Saudis. At the managerial level, including our C-suite, we have Saudis,” Al-Hazmi said. 

He added: “In middle management, we have many young men and women who are part of our company, and they are truly giving us great empathy and trust in ourselves to move forward. This is one of the pillars of Vision 2030.” 

In November, Ladun announced a new investment in Jabal Omar Development Co. in partnership with Musharaka Capital, acquiring a land plot worth SR600 million with an expected revenue of approximately SR2 billion. This investment is viewed as a major step in reinforcing Ladun’s presence in Makkah’s evolving real estate market. 

Al-Hazmi also highlighted the broader impact of Vision 2030 on the Saudi real estate market, particularly in Makkah, which he sees as a prime beneficiary. 

“Stability brings prosperity, and Saudi has enjoyed stability for 100 years now, that brings prosperity. We see it. We see it around the region,” he said. 

Referring to comments made by Larry Fink, CEO of BlackRock, during the World Economic Forum in Davos, Al-Hazmi added: “Larry mentioned that if we take the US aside, we will find the most stable area in the world the GCC countries. Prosperity will be there.” 

With a focus on sustainable expansion, strategic investments, and market recovery, Ladun Investment Co. remains optimistic about its role in shaping Makkah’s future real estate landscape.