With no immediate ceasefire in sight, the future of a number of mega projects by UAE firms looks uncertain. The leading UAE investments in Beirut's real estate sector include Dh2.3 billion investment by Abu Dhabi Investment House, Dh1.83 billion by the Dubai-based Al Habtoor Group and about Dh1 billion exposure of Dubai Islamic Bank in three Beirut real estate projects through Deyar, its real estate subsidiary. While property major Emaar has an estimated commitment of more than Dh1 billion, Damac and Al Futtaim Group's projected investments in Lebanon are estimated at Dh550 million and Dh1.8 billion, respectively.

“During the first few days of the war, many UAE-based investors were hopeful that the skirmishes would not escalate into a protracted conflict. With the chances of prolonged hostilities, many UAE-based companies will be forced to rethink their Lebanon strategy,” said an investment analyst.

Although most investors are hopeful about the post-war opportunities in Beirut, many are jittery about the immediate future.

“No doubt, the war waged against Lebanon has a negative impact on the economy and construction sector, but Beirut Gate (ADIH's project) is still at a very early stage of development. No construction has been done on the plots of the project and hence there is no physical damage. The project is active though we are monitoring the situation very closely and have put in process a continuous review of our marketing activities in line with the developing situation in Lebanon,” Rashid Janahi, CEO of Abu Dhabi Investment House told Khaleej Times.

The ADIH's Beirut Gate project is the downtown's largest development project. Beirut Gate comprises seven plots on 229,871 square feet and a built-up area of almost 1.9m square feet overlooking the landmark Martyrs' Square at the heart of downtown Beirut. The project will be a mixed-use commercial and residential area. The company is hopeful that the situation would soon ease and they could resume the project.

“Beirut has a history of resilience and has risen from destruction several times in its history. Despite all the hardships, crises and difficulties that Lebanon has gone through over the past few decades, it always proved remarkably capable of recovering and starting anew with such amazing high morale and unbreakable persistence. This makes us optimistic about the future of Lebanon and our project Beirut Gate,” said Janahi.

Al Habtoor Group's investments include the Habtoor Metropolitan, Metropolitan Palace, Habtoor Grand, Metropolitan Park and Habtoor Village.

“At the moment people are dying in Lebanon daily and it is not the right time to worry too much about future business. People's security comes first. Therefore we have sent most of our staff in Lebanon on leave, because they need to care for their families in this difficult time. As soon as the crisis is over and the situation returns to normal, we will bring them back to work,” said Mohammed Al Habtoor, CEO of Al Habtoor Group in a statement.