BEIRUT (AP) — A conglomerate based in the United Arab Emirates said Wednesday it is closing its operations in Lebanon and laying off all employees following a dispute with authorities in the crisis-hit country.

The announcement by the Dubai-based Al Habtoor Group came two days after it said it will take legal action against Lebanese authorities over claims of investment losses of $1.7 billion.

Al Habtoor Group’s businesses in Lebanon were hit hard by the country’s worst economic meltdown in late 2019, which deprived people and businesses of accessing money stuck in the banking sector. Lebanon also suffered damage during the 14-month Israel-Hezbollah war that ended with a ceasefire in November 2024, with the World Bank estimating the cost of reconstruction and recovery at $11 billion.

Al Habtoor Group said its decision comes against the backdrop of prolonged instability, ongoing hostile campaigns, public attacks and defamatory actions directed at it and its businesses, as well as the broader legal proceedings underway between the group and the Lebanese government.

“Al Habtoor Group finds itself compelled to make the decision to cease its operations in Lebanon and halt the ongoing financial drain, and proceed with the termination of all employees,” the group said in a statement. It added that the decision was taken to protect its interests and prevent further “unjustified losses.”

Officials at Al Habtoor Group’s offices in Beirut referred all questions about the number of employees being laid off to the company’s headquarters, which did not immediately respond to a request for comment.

Officials at Lebanon’s prime minister’s office were not immediately available for comment.

Al Habtoor Group runs, among other things, a hotel in a Beirut suburb as well as Habtoor Land, a giant theme park east of the Lebanese capital. Last year, it reversed plans to dismantle the Metropolitan Palace Hotel in Beirut.