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Mohamed Al-Fayed, the Egyptian tycoon and long-time owner of Harrods in London, has died aged 94. In the 1960s and 70s he was involved in modernising Dubai.

He was the father of Dodi Fayed, killed alongside Princess Diana in a Paris tunnel car crash in 1997, the only child from his marriage to Samira Khashoggi, the Saudi Arabian writer. Al-Fayed also owned the Ritz Paris hotel and Fulham FC, the west London football club.

Born Mohamed Fayed in 1929 in Alexandria as the eldest son of a teacher, he grew up in the city, where his commercial enterprise shone even in his school days as he turned his hand to selling home-made lemonade. He married Khashoggi in 1954 and was employed in a trading company managed by her brother Adnan, a successful businessman and at one point the world’s wealthiest arms dealer. Al-Fayed then set up a shipping firm in Egypt with his brothers and spent time in Genoa and London expanding the venture.

As his business interests took off, Al-Fayed forged strong links with powerful figures across the globe, such as Francois Duvalier, president of Haiti. The late Sheikh Rashid Al Maktoum authorised Al-Fayed to help change the face of the emirate and the Egyptian hired British companies to carry out construction for the development.

He served as financial adviser to the sultan of Brunei in the 1960s and founded the International Marine Services repair yard in Dubai in 1972.

  • Mohamed Al-Fayed has died aged 94. Getty Images
    Mohamed Al-Fayed has died aged 94. Getty Images
  • With Omar and Karim Al-Fayed at the Royal Film Performance of Spectre at the Royal Albert Hall, London, in 2015. Getty Images
    With Omar and Karim Al-Fayed at the Royal Film Performance of Spectre at the Royal Albert Hall, London, in 2015. Getty Images
  • With one of his daughters, Camilla Al-Fayed, in London in 2014. Getty Images
    With one of his daughters, Camilla Al-Fayed, in London in 2014. Getty Images
  • As Fulham FC chairman, Mr Al-Fayed picks up a young fan during a match in London in 2012. Getty Images
    As Fulham FC chairman, Mr Al-Fayed picks up a young fan during a match in London in 2012. Getty Images
  • Mr Al-Fayed with Sacha Baron Cohen, dressed as his alter-ego Admiral General Aladeen, attending the premiere of The Dictator in London in 2012. Getty Images
    Mr Al-Fayed with Sacha Baron Cohen, dressed as his alter-ego Admiral General Aladeen, attending the premiere of The Dictator in London in 2012. Getty Images
  • Unveiling the statue of Michael Jackson at Craven Cottage, west London, in 2011. Getty Images
    Unveiling the statue of Michael Jackson at Craven Cottage, west London, in 2011. Getty Images
  • Mr Al-Fayed salutes the Fulham crowd at Craven Cottage in 2011. Getty Images
    Mr Al-Fayed salutes the Fulham crowd at Craven Cottage in 2011. Getty Images
  • The Pussycat Dolls with Mr Al-Fayed at the opening of the 2006 Harrods summer sale at the Knightsbridge department store. Getty Images
    The Pussycat Dolls with Mr Al-Fayed at the opening of the 2006 Harrods summer sale at the Knightsbridge department store. Getty Images
  • Mr Al-Fayed and Santa Claus at Harrods in 2007. Getty Images
    Mr Al-Fayed and Santa Claus at Harrods in 2007. Getty Images
  • Mohamed Al-Fayed at the unveiling of a memorial statue in commemoration of his son Dodi and Princess Diana at Harrods in London. Photo: David Lodge / FilmMagic
    Mohamed Al-Fayed at the unveiling of a memorial statue in commemoration of his son Dodi and Princess Diana at Harrods in London. Photo: David Lodge / FilmMagic
  • Fulham manager Jean Tigana celebrates winning promotion to the Premier League with Mr Al-Fayed in 2001. Photo: Allsport
    Fulham manager Jean Tigana celebrates winning promotion to the Premier League with Mr Al-Fayed in 2001. Photo: Allsport
  • Mr Al-Fayed in the food hall of Harrods in 1989. Getty Images
    Mr Al-Fayed in the food hall of Harrods in 1989. Getty Images
  • Princess Diana and Mr Al-Fayed present a prize to Prince Charles – now King Charles III – during the Harrods Polo Cup tournament in Windsor in 1987. Getty Images
    Princess Diana and Mr Al-Fayed present a prize to Prince Charles – now King Charles III – during the Harrods Polo Cup tournament in Windsor in 1987. Getty Images
  • Mr Al-Fayed poses with a portrait of the Duchess of Windsor, in Boulogne-Billancourt, France. Getty Images
    Mr Al-Fayed poses with a portrait of the Duchess of Windsor, in Boulogne-Billancourt, France. Getty Images

He settled in London where he added the 'Al' to his surname and acquired considerable holdings, including the Paris Ritz in 1979. Al-Fayed became embroiled in a bitter takeover tussle with mining company Lonrho, owned by ‘Tiny’ Rowland, for the House of Fraser, which controlled Harrods.

He was forced to demonstrate his solvency after the UK government accused him of misreporting his means of funding the bid, and ultimately achieved his takeover. But this was a precursor to frequent clashes with the British establishment.

Former Spice Girl Victoria Beckham and Mohamed Al Fayed show off the most expensive item in the Harrods winter sale in 2002. Getty Images
Former Spice Girl Victoria Beckham and Mohamed Al Fayed show off the most expensive item in the Harrods winter sale in 2002. Getty Images

The so-called cash-for-questions scandal of 1994 hardly helped, when Al-Fayed identified ministers he said had accepted money in exchange for asking questions on his behalf in parliament. A long-running furore ensued over the “cash-in-brown-envelopes” revelations and a new committee was formed to oversee standards at Westminster, even though many questioned the veracity of Al-Fayed’s claims. Perhaps this conflict and others – Al-Fayed was considered instrumental in ruining the careers of several Tory politicians, such as Neil Hamilton – contributed to thwarting his persistent ambition for British citizenship, for which several attempts proved fruitless. “I have two Filipino nannies who have [a] British passport and not me. I don't need [a] British passport. When you were running around in an animal skin, my ancestors were building the pyramids,” he once said, in an attempt to play down his aspirations.


I'm not intense at all. I'm always relaxed

But the deaths of Dodi Fayed and Princess Diana, who were romantically linked, led to a collapse of relations with the establishment, this time involving the British royal family. Frustrated by a perceived lack of progress with the official probe, Al-Fayed hired his own private investigator to oversee proceedings as he harboured suspicions, persisting with the theory that the royal family had ordered an execution.

“They’ve been murdered,” he insisted on 60 Minutes in 1999. Pressed as to why anyone would want the pair dead, he claimed it was because the royal family “still don’t accept that Dodi … could be the stepfather of the future king”. In 2008, an inquest cleared the British secret service and the royals of any wrongdoing but Al-Fayed remained unrepentant in his claims.

Al Fayed and pop star Dannii Minogue switch on the Harrods Christmas lights in 2009. Getty Images
Al Fayed and pop star Dannii Minogue switch on the Harrods Christmas lights in 2009. Getty Images

He bought Fulham in 1997 for a reported £6.25 million ($7.71 million) and installed Kevin Keegan, then Jean Tigana, as manager and two promotions cemented Premier League status. Not only did Al-Fayed invite his friend Michael Jackson to a match at Craven Cottage – of whom goalkeeper Maik Taylor said had “an aura about him and we were blown away by it all” – he commissioned and erected a statue of the “King of Pop” on a plinth inside the ground, an apparent tribute upon the singer’s death. There it stood for three years until it was returned to Al-Fayed in 2013 by Fulham’s new owner Shahid Khan, who had bought the club for £300 million. By this time, Al-Fayed had sold Harrods to Qatar Holdings for £1.5 billion and had made it on to The Sunday Times Rich List.

Al-Fayed was known as a colourful, voluble and fervent character, blessed with sharp business acumen, whose approach at times strayed into the unconventional. He did contend of himself, however: “I'm not intense at all. I'm always relaxed.”

He was awarded the Freedom of the Scottish Highlands in 2002 by the regional tourist board, acknowledging his “outstanding contribution and commitment” to the area. There, he had established a popular visitors’ centre at the Falls of Shin, at the entrance to which people encountered by a towering statue of a kilted Al-Fayed in full traditional Scottish regalia.

The Al-Fayed Charitable Foundation was set up in 1987 to help ill and needy children, and works alongside charities that assist disabled and neglected youngsters in Britain, Thailand and Mongolia. Al-Fayed also received the Plaque de Paris, after restoring and reopening a Parisian villa belonging to the duke and duchess of Windsor. In 1985 he married the Finnish socialite Heini Wathen, with whom he had four children.

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Springtime in a Broken Mirror,
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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: September 02, 2023, 10:41 AM