The widow of Saudi Arabia's King Fahd bin Abdulaziz has won a five-year legal battle over the ownership of a 10-bedroom mansion on London’s billionaires' row.
The High Court ruled in favour of Aljawharah bint Ibrahim Abdulaziz Al Ibrahim in the case which involved Kenstead Hall on Bishops Avenue in north London, one of the capital’s most expensive streets.
The property had been signed over to her in 2011 by the Lichtenstein-based Asturion Foundation set up to manage the foreign property portfolio of the late king, following instructions he had given before his death in 2005.
Also signed over was a property in France – Chateau de l'Aurore in Golfe-Juan, land in Grünwald, Germany, and an interest in the Al Nahda Palace in Marbella.
But the foundation challenged the transfer.
The court heard that King Fahd had given instructions to his adviser Me Faisal Assaly for the four properties, including Kenstead Hall, to be transferred into his wife's name in 2001.
However, none of the instructions had been carried out by the time of his death in August 2005.
Following his death a Council of Heirs was created to manage his affairs.
During this time, Mr Assaly completed the king's wishes, transferring the German property to Ms Al Ibrahim in 2006, the Spanish property and Kenstead Hall in 2011 and finally the French chateau in 2012.
“In short, the delays at least partly reflect a question which developed about whether consent of the Council of Heirs was needed, and had been given, before the transfers could be effected,” Mr Justice Adam Johnson said.
“Mr Assaly determined that he should proceed in light of the instructions given to him by the late king, and did so.”
The foundation had argued that its purpose was to distribute the late king's assets to his heirs.
“It is said that the effect of the transfer of Kenstead Hall to the princess, either alone or in combination with the transfers of the other properties, was to confer on her benefits in excess of her rightful share, and that was contrary to the foundation's purpose,” Mr Justice Johnson said.
However, Mr Justice Johnson ruled that, aside from poor record keeping by Mr Assaly, there was “no improper disposal of the foundation's assets”.
“There was no mistake by Mr Assaly about either his entitlement or obligation to transfer Kenstead Hall,” the judge ruled.
“He was both entitled and obliged to act as he did. Consequently, there was no mistake of sufficient seriousness to create an equity entitling the foundation to rescind the transfer of Kenstead Hall to the princess.
“There was certainly enrichment, but it was not unjust. My overall conclusion is that the claims by the foundation fail.”
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
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