How Arab tycoon Mohamed Al-Fayed built a business empire from scratch, challenged the British establishment

How Arab tycoon Mohamed Al-Fayed built a business empire from scratch, challenged the British establishment
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As Al-Fayed’s battle with the Conservative Party fluctuated between victory and defeat, he supported his empire by purchasing Fulham Football Club in 1997, elevating it from obscurity to a constant member of the Premier League. (AFP file)
How Arab tycoon Mohamed Al-Fayed built a business empire from scratch, challenged the British establishment
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Mohamed Al Fayed gestures as he leaves the opening of the British inquest into the 1997 death of Britain's Princess Diana, in London on January 6, 2004. (REUTERS/File Photo)
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Updated 03 September 2023
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How Arab tycoon Mohamed Al-Fayed built a business empire from scratch, challenged the British establishment

How Arab tycoon Mohamed Al-Fayed built a business empire from scratch, challenged the British establishment
  • Egyptian-born businessman began life as a porter in Alexandria and died as one of the Arab world’s richest men
  • His acquisition of trophy properties was followed by conflicts with British institutions and even the royal family

CAIRO: The death of Egyptian-born businessman Mohamed Al-Fayed at the age of 94 has brought to a close a remarkable saga of success, setbacks, tragedy and recovery.

To people of a certain generation, looking back on the events of the 1980s, 1990s and early 2000s, his death in the UK on Wednesday truly marked the end of an era.

In an interview with The New York Times in 1995, Al-Fayed expressed his astonishment with how people in Britain perceived him.

“They tend to view anyone from a former colony like Egypt as insignificant,” he said. “But when you prove your capabilities and achieve great things, you become the talk of the town. They wonder how someone like me, simply an Egyptian, could accomplish this.”

This statement encapsulated much of Al-Fayed’s life, which included amassing a fortune and eventually clashing with Britain’s royal family.

Al-Fayed’s business feats were certainly no easy achievement. He forged this empire through sheer determination, helped by his complex personality.

He began his life as a porter — carrying bags and selling soft drinks and, later, sewing machines — in Egypt’s bustling Alexandria and rose to become one of the world’s most recognizable billionaires by the 1990s.

After those humble beginnings, he never turned down any opportunity provided it led to success and greater financial independence.

His ambitious personality allowed him to forge a connection with, and eventual marriage to, the writer Samira Khashoggi, sister of the billionaire Adnan Khashoggi. His marriage opened doors for him in the Gulf states and British high society.

Al-Fayed continued his independent accumulation of wealth, starting with small businesses that paved the way for lucrative deals with numerous wealthy individuals.

He became a millionaire in the 1960s following meetings with Haitian ruler Doc Duvalier and became a financial adviser to the Sultan of Brunei, becoming one of the world’s most renowned businessmen.


BIO

  • Name: Mohamed Al-Fayed
  • Date of birth: Jan. 27, 1929
  • Place of birth: Alexandria, Egypt
  • Home: Britain, since the 1970s.
  • Spouses: Samira Khashoggi, Heini Wathen
  • Major acquisitions: Hotel Ritz Paris; House of Fraser, including Harrods department store; Fulham F.C. (1997)

The late ruler of Dubai, Sheikh Rashid Al-Maktoum, authorized Al-Fayed to help develop the emirate. The businessman responded by hiring British companies to launch construction projects that presaged the modernization of Dubai.

Al-Fayed’s wealth and status allowed him to take full residency in Britain in 1974. He added “Al” to his name, becoming “Mohamed Al-Fayed” instead of merely Mohamed Fayed. The satirical magazine Private Eye consequently dubbed him “The Fake Pharaoh.”

In doing so, it signaled the beginning of his tense relationship with Britain, which may have been predestined.

Al-Fayed and his brother acquired the Ritz hotel in Paris in 1979. In 1985, they bought the upmarket Harrods department store in London for £615 million ($669 million at the time), following a protracted legal battle with the British businessman Roland Rowland. He went on to open additional stores under the proprietary Harrods brand.

These landmark acquisitions were met with obstacles and pushback. A subsequent government investigation into the House of Fraser takeover, including Harrods, officially published in 1990, found that Al-Fayed and his brother had been dishonest about their wealth and origins. The two described the claims as unfair, but five years later Al-Fayed’s first application for British citizenship was rejected.

“Why won’t they grant me a British passport? I own Harrods and employ thousands of people in this country,” he protested.




In this on November 13, 1996, photo, Harrods' department store owner Mohamed Al Fayed shows off a card in the form of an over-sized passport during a news conference in London after he and his brother Ali won a court battle against the British government's refusal to grant them citizenship. (REUTERS/File Photo)

Undeterred, Al-Fayed decided to escalate his battle for citizenship by accusing two Conservative ministers, Neil Hamilton and Tim Smith, of accepting money from him in exchange for serving his interests in the House of Commons.

As a result, the two were forced to resign from their government positions, a fate that also awaited Jonathan Aitken, then minister of state for defense procurement, after Al-Fayed disclosed that he had stayed at the Paris Ritz Hotel for free at the same time as a group of arms dealers. Aitken’s downfall was significant since he was imprisoned for perjury.

In 1997, Al-Fayed acquired the English football club Fulham. During his ownership, Fulham climbed to the English Premier League and reached the final of the European League. He sold the club in 2013 to another businessman, Shahid Khan, for an estimated $300 million.




The story of Fulham cannot be told without a chapter on the positive impact of Mohamed Al-Fayed as chairman, says Shahid Khan, the current owner of Fulham Football Club. (AFP file photo)

Around this time, Al-Fayed’s battles were primarily with Britain’s ruling political party rather than the royal family. His relations with the latter were primarily based on mutual interests, such as the sponsoring of horse-racing events.

That would drastically change due to the relationship his son Imad, better known as “Dodi,” had with Princess Diana, wife of Prince Charles, the current king. That connection would alter the course of Al-Fayed’s life and the life of his family.

In 1997, Diana and Dodi were killed when their car struck a concrete column in the Alma Tunnel in Paris. Criminal reports confirmed that their driver was intoxicated at the time of the crash.




Harrods chairman Mohamed Al Fayed (R) unveils a memorial (L) to his son Dodi and Britain's Diana, Princess of Wales at Harrods in London, September 1, 2005. (REUTERS/File Photo)

Adding to his growing rift with the royal family, Al-Fayed traveled around Europe insisting that Britain’s ruling elite were responsible for his son and Diana’s death. Although he did not directly accuse any individual, the accusations came at a high cost.

Harrods lost its royal privilege from Prince Philip, and Buckingham Palace’s business relationship with the prince and the famous department store declined. In response, Al-Fayed revoked all remaining privileges for the royal family.

After resettling in Switzerland in 2002, Al-Fayed became more vocal in his accusations against Britain’s ruling establishment.

In February 2008, he accused Philip, husband of Queen Elizabeth II, of ordering the deaths of his son and Diana. He also alleged that Britain’s intelligence service was involved.

In 2010, Al-Fayed sold Harrods to Qatar Holding for £1.5 billion pounds (about $1.8 billion).




The Flame of Liberty monument in Paris has become an unofficial memorial for Diana, Princess of Wales who died in a car crash in a nearby tunnel in the early hours of August 31, 1997, along with her boyfriend Dodi Fayed and driver Henri Paul. (AFP/File)

The following year, he financed the production of a documentary film titled “Unlawful Killing,” in which he again accused Philip of responsibility for his son and Diana’s deaths. The film was shown at the Cannes Film Festival, but had no public release owing to legal issues.

Al-Fayed’s antagonism toward the British monarchy led him to support Scottish secession from the UK. He told the BBC in 2012 that he would move to Scotland if it achieved independence, and envisioned obtaining Scottish residency and running for its presidency.

He even claimed Scotland had Egyptian origins on the basis of a pharaonic princess who is believed to have traveled there in the past.

Throughout his life, Al-Fayed built an empire spanning various sectors, including shipping, real estate, banking, retail and contracting, but remained committed to philanthropy. With a fortune estimated at $2 billion, he died a wealthy man and was the 12th on the Forbes list of richest Arabs for this year.

 


Ukraine on the defensive as Russia war enters third year

Ukraine on the defensive as Russia war enters third year
Updated 10 sec ago
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Ukraine on the defensive as Russia war enters third year

Ukraine on the defensive as Russia war enters third year
  • While the EU has assured Ukraine of continuing support, the overall picture remains bleak for Kyiv due to the US Congress blocking a vital $60 billion aid package

KYIV: Ukraine on Saturday marked two years since Russia’s invasion, entering a new year of war weakened by a lack of western aid while Russia is emboldened by fresh gains.

When Russian President Vladimir Putin announced a “special military operation” at dawn on February 24, 2022, many expected Moscow’s victory within days, but Ukraine fought back, forcing Russian troops into humiliating retreats.
But Ukraine has suffered setbacks with the failure of its 2023 counteroffensive. The Russian army has in turn built up a position of strength thanks to booming war production, while Ukraine’s troops are short of manpower and running low on Western-supplied ammunition for artillery and air defenses.
President Volodymyr Zelensky said Friday that decisions on arms supplies have to be “the priority.”
Saturday’s anniversary will see visits by Western leaders including EU commission chief Ursula von der Leyen, but the overall picture remains bleak for Kyiv due to the US Congress blocking a vital $60 billion aid package. This has come on top of delays in promised European deliveries.
US President Joe Biden renewed calls for Republican lawmakers to unblock the additional funding, warning that “history is waiting” and “failure to support Ukraine at this critical moment will not be forgotten.”

Russia is attacking hard in the east, with the destroyed town of Maryinka near Donetsk the latest hotspot after it captured the heavily fortified town of Avdiivka on February 17.
Ukraine’s economy has also been hit by a border blockade by Polish farmers that Kyiv says threatens exports and has held up deliveries of weapons.

In Kyiv, the mood was grim but still defiant as people said they had grown accustomed to wartime conditions.
“For women of Ukraine, this is our heartache — for our husbands, for our children, for our fathers,” said nutritionist Olga Byrko in Kyiv.
“I would really like this to end as quickly as possible.”
“Yes of course we have learned to live with it... now the war is our life,” said Yuriy Pasichnyk, a 38-year-old businessman.
“I think we need to have more weapons so that we can drive this evil spirit out of our land and start rebuilding our Ukraine,” said 51-year-old Kostyantyn Gofman.
Ukraine needs almost half a trillion dollars to rebuild towns and cities destroyed by Russia’s invasion, according to the latest estimate by the World Bank, European Union, United Nations and Ukrainian government.
Ukraine has estimated that around 50,000 civilians have been killed.

Neither side has given numbers for military deaths and injured, while both claim to have inflicted huge losses.
In August 2023, The New York Times quoted US officials as putting Ukraine’s military losses at 70,000 dead and 100,000 to 120,000 injured.
Leaked US intelligence in December indicated that 315,000 Russian troops had been killed or wounded.
On the eastern front, morale is low as outnumbered and outgunned Ukrainian troops are ceding ground to Russian forces.
“We are running out of shells and the Russians keep coming. Lots of our comrades are injured — or worse. Everything is getting worse and worse,” said one soldier near Bakhmut, speaking on condition of anonymity.
Moscow has massively ramped up its arms production and received drones from Iran, while Kyiv says it has confirmed Russia’s use of North Korean missiles.
Zelensky said in December the military wanted to draft up to 500,000 more troops. A bill to broaden mobilization has caused wide public fear.
The conflict has thrown Russia into even greater isolation from the West, with the United States and its allies imposing a slew of sanctions.
But Putin has brushed off the fallout and hailed the troops as “true national heroes.”
He has used the war years to rally patriotism and mount an even harsher crackdown on dissent, with few daring to voice opposition to the war.
The death in prison of opposition leader Alexei Navalny has removed Putin’s arch-foe, and he is set to extend his term in office in elections next month.
On the streets of Moscow, most people told AFP they back the soldiers fighting in Ukraine.
“I’m proud of our men,” said 27-year-old Nadezhda, an environmental engineer.
“Of course I am anxious for them, but it’s a pleasant feeling that they are doing great, they are out there fighting for our country.”
One of the few to give an alternative opinion, was Konstantin, a drama teacher working as a waiter, who said: “I’m against any war. Two years have passed and it annoys me that people can’t talk to each other and are still at war.”
 


France’s support for Ukraine ‘will not waver’, Macron vows

France’s support for Ukraine ‘will not waver’, Macron vows
Updated 4 min 25 sec ago
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France’s support for Ukraine ‘will not waver’, Macron vows

France’s support for Ukraine ‘will not waver’, Macron vows

PARIS: French President Emmanuel Macron warned his Russian counterpart Vladimir Putin early Saturday not to “count on any fatigue from Europeans” over the war in Ukraine, pledging that France’s support for Kyiv “will not waver.”
“Battered and bruised, but still standing. Ukraine is fighting for itself, for its ideals, for our Europe. Our commitment at its side will not waver,” he wrote in a message on X marking the second anniversary of Russia’s invasion, which falls on Saturday.
A separate statement from Macron’s office touted the European Union’s support for Kyiv, including accepting refugees, offering civil and military aid, and levelling sanctions on Moscow.
“President Putin’s Russia must not count on any fatigue from Europeans,” the statement said.
“France is also committed to continuing its support on all fronts, including the supply of military equipment, cooperation between defense industries through the development of co-productions, training, intelligence and civilian aid,” it added.
“The outcome of this war will be decisive for European interests, values and security.”
The French pledge of support came as other key Ukrainian allies renewed their commitment to assisting Kyiv.
US President Joe Biden on Friday announced more than 500 new sanctions against Russia, while vowing sustained pressure to stop President Vladimir Putin’s “war machine.”
The sanctions, described as the largest single tranche since the start of the war, also seek to impose a cost for the death last week in a Siberian prison of Putin’s most vocal critic, Alexei Navalny.
Britain, meanwhile, announced Saturday a new £245 million ($311 million) defense package to help boost the production of “urgently needed artillery ammunition” for Ukraine, with Prime Minister Rishi Sunak insisting in an earlier statement that “tyranny will never triumph.”


Spaceship Odysseus lying sideways after dramatic moon touchdown

Spaceship Odysseus lying sideways after dramatic moon touchdown
Updated 26 min 36 sec ago
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Spaceship Odysseus lying sideways after dramatic moon touchdown

Spaceship Odysseus lying sideways after dramatic moon touchdown
  • Shares of stocks of Intuitive Machines, maker of the lunar lander, descend fast after CEO's revelation
  • Odysseus is still considered the first success for a new fleet of NASA-funded lunar landers

WASHINGTON: The first American spaceship to the Moon since the Apollo era is probably lying sideways following its dramatic landing, the company that built it said Friday, even as ground controllers work to download data and surface photos from the uncrewed robot.
The Odysseus spacecraft landed near the lunar south pole Thursday at 6:23 p.m. Eastern Time (2323 GMT), after a nail-biting final descent when ground teams had to switch to a backup guidance system and took several minutes to establish radio contact after the lander came to rest.
Intuitive Machines, the company behind this first-ever lunar landing by a private company, initially posted on social media that its hexagonal spaceship was upright, but CEO Steve Altemus told reporters on Friday that statement was based on misinterpreted data.
Instead, it appears that it caught a foot on the surface and tipped over, coming to rest horizontally with its top perched on a small rock — taking some shine off an accomplishment widely hailed as a historic achievement.

The revelation by Altemus caused shares of Intuitive Machines to tumble 30 percent in extended trade, wiping out a Friday rally after the dramatic touchdown.

On Feb. 22, 2024, Intuitive Machines’ Odysseus lunar lander captured a wide field of view image of Schomberger crater on the Moon approximately 200 km uprange from the intended landing site. (X: @Int_Machines)

The stock of the first private company to successfully land on the moon nearly doubled from $4.98 before the Feb. 15 launch to $9.59 as of Friday’s close. Friday’s late-day sell-off left it below $7.
Still, the company said the spacecraft is “alive and well” and engineers were sending commands to the vehicle, and NASA officials at a news conference praised the effort.
The first touchdown on the lunar surface by a US spacecraft in more than half a century enthused investors of fellow space startups, sending up shares of companies such as Astra Space and Satellogic. They slipped between 0.5 percent and 2.8 percent in after-hours trading.
Stephen Altemus, CEO of Houston-based Intuitive Machines, which built and flew the lander, said the vehicle is believed to have caught one of its six landing feet on the lunar surface during its final descent and tipped over, coming to rest on its side propped up on a rock.

The Texas-based company’s lunar lander touched down at the Malapert A crater, about 300 kilometers (190 miles) from the moon’s south pole on February 22.
It was sent to the moon on Feb. 15 using a Falcon 9 rocket launched by Elon Musk’s SpaceX from NASA’s Kennedy Space Center in Cape Canaveral, Florida.
The company, co-founded in 2013 by serial space industry investor Kam Ghaffarian and NASA veterans Altemus and Tim Crain, is awaiting first images from the lunar surface.
The landing could open the doors to investments and government contracts, helping space companies ride out what has been a tough period of funding due to an uncertain economy.

A NASA probe called the Lunar Reconnaissance Orbiter should be able to photograph Odysseus over the weekend, helping pinpoint its exact location.
Altemus said that while solar arrays were on the top-facing side, the team’s ability to download data from the science experiments on board was being hampered because of antennas facing downward that “are unusable for transmission back to Earth — and so that really is a limiter in our ability to communicate and get the right data down so we get everything we need for the mission.”
Because of complications associated with the landing, a decision was taken not to shoot out an external camera to capture the descent as it happened, according to Embry-Riddle Aeronautical University, which built the “EagleCam” device.
But the team will still attempt to deploy it from the ground to try to obtain an outside image of Odysseus.

Odysseus is still considered the first success for a new fleet of NASA-funded lunar landers designed to carry out science experiments that will pave the way for the return of American astronauts to the Moon later this decade, under the Artemis program.
A moonshot by another American company last month ended in failure, raising the stakes to demonstrate that private industry has what it takes to repeat a feat last achieved by US space agency NASA during its manned Apollo 17 mission in 1972.

Underlining the technical challenges, Intuitive Machines’ own navigation technology failed and ground engineers were forced to jury-rig a solution, hastily writing a software patch to switch to an experimental NASA laser guidance system that was intended to run only as a technology demonstration.
Altemus later revealed Odysseus’ own laser system failed to turn on because someone had forgotten to flip a safety switch before takeoff, which he described as “an oversight on our part.”
Confirmation of landing was supposed to come seconds after the milestone, but instead around 15 minutes passed before a faint signal was detected, enough to declare the spaceship was in one piece and had met its goal.

NASA paid Intuitive Machines $118 million to ship six experiments under an initiative which delegates cargo services to the private sector in a bid to achieve savings and stimulate a wider lunar economy.
Odysseus also carries cargo for private customers, including a reflective heat wrapping developed by Columbia Sportswear and used to protect the spaceship’s cryogenic propulsion tank.
The United States, along with international partners, want to develop long-term habitats on the south pole, harvesting ice there for drinking water — and for rocket fuel for eventual onward voyages to Mars.
The first crewed landing under NASA’s Artemis program is set to take place no sooner than 2026. China, meanwhile, plans to put its first crew on the Moon in 2030, opening a new era of space competition.
The mission was the fourth attempt at soft lunar touchdown by the private sector. Intuitive Machines joins the national space agencies of the Soviet Union, United States, China, India and Japan in an exclusive club of landing on the Moon.

 


Indian court seeks renaming of ‘interfaith’ lion pair

A man walks past the idols of Hindu deities Ram and Sita at a temple in Varanasi on February 23, 2024. (AFP)
A man walks past the idols of Hindu deities Ram and Sita at a temple in Varanasi on February 23, 2024. (AFP)
Updated 22 min 34 sec ago
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Indian court seeks renaming of ‘interfaith’ lion pair

A man walks past the idols of Hindu deities Ram and Sita at a temple in Varanasi on February 23, 2024. (AFP)
  • Critics say religious intolerance toward India’s 200-million-strong Muslim minority has grown since Prime Minister Narendra Modi’s government came to power in 2014

NEW DELHI: An Indian court has asked authorities to find new monikers for two lions named after a Hindu goddess and a Muslim emperor, following a religious group’s petition to stop them from sharing an enclosure.
Sita and Akbar were shipped to Siliguri zoo in West Bengal this month as part of an animal exchange program from a neighboring state.
That irked the Vishwa Hindu Parishad (VHP), a prominent right-wing Hindu organization that has campaigned against interfaith relationships.
The group took the matter to court saying the lion pair’s cohabitation was an act of “blasphemy” that hurt Hindu religious sentiments.
Justice Saugata Bhattacharyya of the Calcutta High Court asked government counsel to rename the pair on Thursday.

Indian PM Narendra Modi performs the groundbreaking ceremony of a temple dedicated to the Hindu god Ram, in Ayodhya, India, Aug. 5, 2020. (AP)

“These names should be avoided and discontinued to avoid unnecessary controversy,” he said from the bench, according to the Hindustan Times newspaper.
Government counsel Joyjit Choudhury told the judge that the state was “already thinking of renaming” the pair.
Sita is one of the main characters of the Hindu epic Ramayana and the wife of Ram, one of the Hindu faith’s most revered deities.
Akbar was a 16th-century Mughal emperor who extended Islamic rule over much of the Indian subcontinent — a time Hindu nationalist groups say was a period that their religion was oppressed.
The VHP also claimed that Akbar the lion had originally been named after Ram before the pair arrived in Siliguri.
Critics say religious intolerance toward India’s 200-million-strong Muslim minority has grown since Prime Minister Narendra Modi’s government came to power in 2014.
The VHP, a group loosely affiliated with Modi’s ruling Bharatiya Janata Party, has campaigned against interfaith marriages and supported efforts by state governments to make them more difficult.
It has also promulgated a “Love Jihad” conspiracy theory that alleges India’s Muslim minority hoodwink Hindu women into marriage to convert them to Islam.
 

 


Eight in hospital after reports of ‘odour’ at Sweden intel service

Eight in hospital after reports of ‘odour’ at Sweden intel service
Updated 24 February 2024
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Eight in hospital after reports of ‘odour’ at Sweden intel service

Eight in hospital after reports of ‘odour’ at Sweden intel service
  • Images from the scene showed police wearing gas masks alongside several ambulances and emergency vehicles
  • After ending their emergency operation, police said they had started an investigation into “causing bodily harm” but did not have any suspects

STOCKHOLM: Police opened an investigation Friday after a suspicious odour at Sweden’s Security Service office left eight people needing hospital treatment with respiratory symptoms.
Images from the scene showed police wearing gas masks alongside several ambulances and emergency vehicles as an area around the office of the agency, known as Sapo, was closed off.
“Around 1:00 p.m. today, there were indications that there was a dangerous substance at Sapo’s offices,” Patrik Soderberg, chief physician at the local health care authority Region Stockholm, told AFP.
“A total of eight people with symptoms have been treated at hospital,” Region Stockholm said in a statement, adding that the “cause of the leak was still unclear.”
After ending their emergency operation, police said they had started an investigation into “causing bodily harm” but did not have any suspects.
Police said an area of “a couple of hundred meters” around the building had been closed off after “a potential gas leak.”
Some of those taken to hospital were officers who had “smelled an odour when they arrived,” the service added in a statement.
Sapo spokeswoman Karin Lutz told AFP the intelligence agency had called emergency services after receiving an alarm.
Lutz said the building had been “partly evacuated” during the emergency but declined to give further details or comment on whether they suspected foul play.
In a later statement, Sapo said “emergency services ended the operation after confirming that there was no gas inside the premises or outside the building.”
The Nordic country is on high alert as it is expecting to clear the final hurdle to its bid to join NATO on Monday, with the last holdout Hungary scheduled to vote on ratifying its membership.
The Aftonbladet newspaper said witnesses had reported smelling something that reminded them of paint, and that locals had been told to close their windows.
Swedish media also reported that a gas sensor on the roof of the building had alerted the presence of phosgene, but these reports have not been confirmed.
The gas was used as a chemical warfare agent during World War I, but is also widely used in industry for the production of plastics and pesticide.