Why Is the UAE Ready to Return to Lebanon?

After a travel ban that had been in place since 2021, the UAE’s decision to allow its citizens to visit Lebanon signals a possible return of Emirati investment to a country whose political landscape is starting to shift.

Shifting Dynamics

The travel restriction was officially lifted on May 7, 2025, just days after a diplomatic meeting in Abu Dhabi between Lebanon’s President Joseph Aoun and UAE President Mohamed bin Zayed on April 30.

“The country is going through a difficult phase, but the state is regaining its presence, authority, and sovereignty,” Aoun said, adding, “The past is behind us, we recall it only to learn from it.”

Relations between Lebanon and the UAE had frayed in recent years, largely due to Hezbollah’s growing influence as Iran’s armed proxy in the country. In 2021, the UAE imposed a travel ban and withdrew its diplomats from Beirut in solidarity with Saudi Arabia, following Lebanese minister George Kordahi’s criticism of Saudi involvement in Yemen.

However, Hezbollah’s weakened position after its open confrontation with “Israel,” launched on October 8, 2023, in support of Gaza, appears to have encouraged renewed interest from the UAE and other Gulf states in reengaging with Lebanon.

Beirut welcomed three flights carrying Emirati nationals on May 7, marking the first such arrivals in years and what many described as the start of a “new chapter” in Emirati-Lebanese relations.

Lebanon’s new Prime Minister Nawaf Salam has reassured GCC ambassadors of his government's commitment to addressing their concerns and rebuilding trust.

Analysts see the UAE’s move not just as a shift in travel policy, but as an indication of Abu Dhabi’s potential role in Lebanon’s economic recovery and broader regional reintegration.

A Fresh Boost

Abu Dhabi’s recent moves to re-engage with Lebanon likely came in coordination with other regional players, especially Saudi Arabia.

Before ties deteriorated, Saudi tourists ranked first in spending in Lebanon, followed by visitors from the UAE, Kuwait, and Qatar. Together, they made up around 40% of the more than 2 million tourists who visited in 2010, generating over $9 billion in tourism revenue, according to local Lebanese sources.

That Gulf capital began to pull out in 2021, as Lebanon came to be seen as “occupied by Iran.” The situation worsened after October 7, 2023, when the UAE warned its citizens against staying in Lebanon following the launch of Operation al-Aqsa Flood.

President of the Lebanese Hotel Association and Federation for Tourism syndicate in Lebanon Pierre Achkar welcomed the return of Emirati tourists, calling it “a clear sign that Emirati investment in Lebanon, which has long been among the largest and most important, could soon return.”

In remarks on May 8, 2025, Achkar noted that Emiratis still own major real estate holdings in towns like Aley, Bhamdoun, and across the Matn region, where palaces worth billions stretch from Mansourieh to Dhour Chweir.

President Joseph Aoun has made it a priority to reconnect Lebanon with its Arab neighbors and restore ties with Gulf countries, visiting Saudi Arabia, Qatar, and the UAE in recent months.

With Lebanon’s economy in collapse since 2019, renewed Emirati support could be a crucial step toward recovery.

According to the UAE Ministry of Economy, Emirati direct investments in Lebanon totaled more than $7.1 billion (around 26 billion dirhams) as of 2016. These covered key sectors like seaport operations, pharmaceuticals, IT services, air transport, tourism and hospitality, real estate, banking, energy, and petrochemicals.

The UAE was also Lebanon’s top Arab trading partner and its seventh-largest worldwide. In 2018, it was the top destination for Lebanese exports, accounting for 14% of the country’s total exported goods.

‘Step by Step’

In early May 2025, Abu Dhabi and Beirut agreed to establish a joint business council between the UAE and Lebanon, aiming to boost economic partnership and support mutual investments.

As part of this effort, the Abu Dhabi Fund for Development plans to send a delegation to Lebanon to assess joint projects and explore future cooperation opportunities.

There were also discussions about Lebanese President Joseph Aoun receiving Abu Dhabi’s approval to support the Lebanese army and official security forces under a program whose technical details will be worked out by the relevant ministers.

According to Lebanese local outlet Nidaa al-Watan, Aoun and the UAE president discussed during the recent visit the creation of an “Emirati-Lebanese Business Council,” recognizing such bodies as key drivers to elevate economic cooperation and increase business volume.

The most significant step is Lebanon’s inclusion on the target list of the Abu Dhabi Fund for Development—one of the UAE’s sovereign wealth funds financing major development projects worldwide. The fund is expected to send a delegation to Beirut to explore the return of Emirati investments, as per Nidaa al-Watan.

Lebanese writer Samer Zreik sees the outcomes of President Aoun’s visit to Abu Dhabi as more than just agreements. He says they represent a broader effort to restore the political support umbrella from Gulf and Arab states, which began in Riyadh.

In a May 8, 2025 article, Zreik suggested that Emirati support will influence other Gulf and regional countries to follow suit gradually, “step by step.”

The core aim of Emirati economic aid to Lebanon is to counteract the “resistance axis” during the era of Hezbollah’s dominance—a period marked by attacks on Arab brothers to weaken Lebanon’s key strength and strip it of the political protection it once enjoyed under the Taif Agreement.

Zreik concluded that the funds flowing into Lebanon’s struggling economy serve as a foundation to detach the country from its historical Arab roots and accelerate its alignment with Iran’s mullah-led axis.

A Policy of Distance

Although hostility has long defined the relationship between Hezbollah and the UAE, Abu Dhabi sent signals during the recent conflict between Hezbollah and “Israel” that Lebanon faces “security challenges” hindering Emirati investment.

The UAE pursued a policy of economic distancing from Lebanon. One example was when Emirati businessman Khalaf al-Habtoor announced in early May 2024 plans to launch a TV channel in Lebanon (name unspecified) — a risky investment move during a sensitive time.

However, by June 13, 2024, al-Habtoor abandoned the TV channel project, citing “security challenges, including physical threats against the founder and staff, making continuation in Lebanon impossible,” according to a statement from the al-Habtoor Group.

The billionaire didn’t stop there. On April 27, 2025, he revealed a comprehensive plan to relocate the Metropolitan Beirut Hotel building to a new site by transporting it in sections on a barge (a technique previously used in China) after completing technical and logistical studies.

This decision followed earlier steps: in January 2024, al-Habtoor announced the cancellation of all his investment projects in Lebanon and the sale of his properties, pointing to “lack of security and stability, with no near-term prospect of improvement.” He also revealed losses exceeding $1.4 billion on frozen investments in Lebanon, according to his post on X.

Observers see al-Habtoor as a businessman whose investments align with Abu Dhabi’s policy. The UAE media consistently warned that Lebanon was under Hezbollah and Iranian control and urged its citizens to leave after Operation al-Aqsa Flood.

After Hezbollah’s influence weakened following the recent conflict with “Israel,” the election of the army chief as Lebanon’s new president, and his pledge to disarm all groups outside state control—including those in Palestinian camps—al Habtoor announced his intention to invest in a major ambitious project once the new Lebanese government was formed in early February 2025.

At the time, he said, “This project reflects a vision to contribute to economic revival and create thousands of jobs, providing a real boost to Lebanon’s economy and restoring confidence.”

The Emirati step is expected to pave the way for similar moves by other Gulf states. Still, a full-fledged Gulf return to Lebanon remains off the table for now, awaiting the right conditions and a guarantee of lasting stability and security.