The investment arm of Qatar’s sovereign wealth fund has bought the famous London department store Harrods from Egyptian-born businessman Mohamed al-Fayed in a deal reported to be in the region of £1.5 billion (US$2.3 billion).
Qatar Holding, the prime vehicle for strategic and direct investments by the State of Qatar, would not confirm the estimated figure reported by Sky News.
The country’s prime minister, who is also chairman of Qatar Holding, said there were plans to upgrade the luxury store, popular with tourists and an historic landmark in the upmarket Knightsbridge area of London.
PHOTO: AFP
“What I can assure you is Qatar Holding will do their best to upgrade this monument, to make it even greater and better for the tourism and also for the British people,” Sheikh Hamad bin Jassim al-Thani told reporters in an impromptu news conference at the store.
He said the company would create a “road map” to upgrade Harrods in the next few months.
The deal brings to an end 25 years of ownership by al-Fayed, who will become honorary chairman.
“Mohamed al-Fayed has decided to retire and to spend more time with his children and grandchildren,” Ken Costa, chairman of Lazard International, said in a statement on Saturday.
Lazard advised the al-Fayed family trust.
“Qatar Holding was specifically chosen by the Trust as they had both the vision and financial capacity to support the long-term successful growth of Harrods,” Costa said.
Qatar Holding is an arm of Qatar Investment Authority (QIA), which was founded by the State of Qatar in 2005 to strengthen its economy by diversifying into new asset classes.
QIA is one of the largest sovereign wealth funds in the world with an estimated US$60 billion or more in assets under management.
“It is a privilege for us to acquire Harrods, a unique company that combines an iconic luxury brand and one of the most prestigious retail properties in the world with best-in-class financial metrics,” said Ahmad al-Sayed, chief executive officer and managing director of Qatar Holding.
Qatar Holding has stakes in supermarket chain J Sainsbury, the London Stock Exchange and Credit Suisse. The purchase followed interest by the Emir of Qatar, the prime minister said.
“Harrods generates good and stable returns as a business, it will add much value to our international portfolio of investments,” Sheikh Hamad said in a statement.
Al-Fayed, who also owns English soccer club Fulham, bought Harrods in 1985 for about £615 million at a time when the group also owned the House of Fraser department store chain, which was later spun off.
A colorful figure, al-Fayed waged a long campaign claiming his son Dodi and Princess Diana, who died together in 1997, were murdered in a conspiracy.
Qatar Holding will be the fifth owner of Harrods since its creation in 1840.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to