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)
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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

  • 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.

 


Two French prison officers killed in inmate's escape

Updated 6 sec ago
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Two French prison officers killed in inmate's escape

The incident took place late morning at a road toll in Incarville in the Eure region of northern France
The inmate was being transported between the towns of Rouen and Evreux in Normandy

ROUEN, France: Gunmen on Tuesday attacked a prison van at a motorway toll in northern France, killing at least two prison officers and freeing a convict who had been jailed last week.
President Emmanuel Macron vowed that everything would be done to find those behind the attack as hundreds of members of the security forces were deployed for a manhunt to find the attackers and the inmate who were all still at large.
Two prison officers were killed in the attack and two others are receiving urgent medical care, Paris prosecutor Laure Beccuau said in a statement.
The incident took place late morning at a road toll in Incarville in the Eure region of northern France, a source close to the case added.
The inmate was being transported between the towns of Rouen and Evreux in Normandy.
A police source said several individuals, who arrived in two vehicles, rammed the police van and then fled.
One of them was wounded, the police source said.
It was not immediately clear how many attackers there were in total.
"Everything is being done to find the perpetrators of this crime," Macron wrote on X.
"We will be uncompromising," he added, describing the attack as a "shock".
Justice Minister Eric Dupond-Moretti immediately headed to a crisis cell at his ministry.
"These are people for whom life counts for nothing. They will be arrested, they will be judged and they will be punished according to the crime they committed," he said.
Both the officers killed were men and they were the first prison officers to be killed in the line of duty since 1992, he added.
One of them was married and had two children while the other "left a wife five months pregnant", he said.
"I am frozen with horror at the veritable carnage that took place at the Incarville toll," said Alexandre Rassaert, the head of the Eure region council.
"I hope with all my heart that that the team of killers which carried out this bloody attack will be arrested quickly."
A unit of the GIGN elite police force has been despatched to apprehend the suspects.
Traffic was stopped on the A154 motorway where the incident took place.
Interior Minister Gerald Darmanin wrote on X he had ordered the activation of France's Epervier plan, a special operation launched by the gendarmerie in such situations.
"All means are being used to find these criminals. On my instructions, several hundred police officers and gendarmes were mobilised," he said.
Prosecutor Beccuau named the inmate as Mohamed Amra, born in 1994, saying that last week he had been convicted of aggravated robbery and also charged in a case of abduction leading to death.
The case has been handed to prosecutors from France's office for the fight against organised crime known by their acronym JUNALCO.
Law and order is a major issue in French politics ahead of next month's European elections and the incident sparked fierce reactions from politicians, especially the far right.
"It is real savagery that hits France every day," said Jordan Bardella, the top candidate for the far-right National Rally (RN) which is leading opinion polls for the elections.

Indonesia’s president-elect seeks to boost defense ties with UAE

Updated 29 min 21 sec ago
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Indonesia’s president-elect seeks to boost defense ties with UAE

  • Prabowo Subianto is set to succeed President Joko Widodo in October
  • His visit to Abu Dhabi seen as a strategic move ahead of presidency

JAKARTA: Indonesia’s President-Elect Prabowo Subianto wants to boost defense ties with the UAE, his office said on Tuesday, as he made the first official trip to Abu Dhabi since winning the general vote.

Indonesia-UAE relations grew under incumbent Indonesian President Joko Widodo, who in 2021 secured an over $46 billion investment commitment from the Gulf state. A year later, the two countries signed a free trade deal, which came into force last September.

Subianto, a former special forces commander and Indonesia’s current defense minister, is set to succeed Widodo and take office in October following his landslide victory in the presidential election in February.

On Monday, he was in Abu Dhabi to receive the UAE’s highest civilian honor, the Order of Zayed, in recognition of his efforts in enhancing bilateral ties.

“I hope Indonesia-UAE relations will continue to develop and grow in accordance with the ambitions of the two countries in strengthening cooperation across various fields, including in defense,” Subianto said in a statement after meeting UAE President Sheikh Mohammed bin Zayed Al-Nahyan.

During Subianto’s time in office as minister, Indonesia and the UAE agreed to strengthen defense ties with the signing of a memorandum of understanding in 2020, followed by a protocol agreement on the development of their defense industries in 2022.

Subianto’s visit to the UAE can be seen as a strategic move ahead of his presidency.

“As we get closer to his inauguration, Prabowo has gained a boost in confidence to directly meet with MBZ and discuss strategic issues at the bilateral, regional and global level,” said Teuku Rezasyah, an international relations expert from Padjadjaran University in West Java.

“It’s only natural that Prabowo is visiting Abu Dhabi because it’s one of the world’s biggest sources of foreign investments … Certainly, Prabowo wants to seriously guarantee that investments from Abu Dhabi will be very strategic in the development of Indonesia.”


India sets sights on Iranian port as gateway to Afghanistan, Central Asia

Updated 30 min 53 sec ago
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India sets sights on Iranian port as gateway to Afghanistan, Central Asia

  • New Delhi signed a 10-year deal to operate Chabahar port on Monday
  • India began helping Iran to develop Chabahar in 2016

NEW DELHI: India’s newly signed deal to operate the Iranian port of Chabahar is expected to provide it a gateway to landlocked Afghanistan and Central Asia, offering possible competition to Pakistan’s Gwadar.

The 10-year contract, under which India will invest $120 million in Chabahar’s infrastructure, was signed in Tehran on Monday between the state-owned Indian Ports Global Ltd and the Port & Maritime Organization of Iran.

India’s Shipping Minister Sarbananda Sonowal welcomed the deal, saying the development of Chabahar was an “India-Iran flagship project” and that the port would be a “gateway for trade with Afghanistan and broader Central Asian countries.”

New Delhi’s commitment to Chabahar started in May 2016 when Iran, India, and Afghanistan signed a trilateral transit agreement to develop the port into a regional trade hub.

“The signing of the deal signifies the strength of bilateral ties between India and Iran,” said D.P. Srivastava, who was India’s ambassador to Iran when talks on the project started.

“The present agreement will build on progress achieved so far.”

India’s 2016 involvement in Chabahar came after the US eased sanctions on Iran. The sanctions were reimposed by Donald Trump’s administration in 2018.

After the signing of Monday’s agreement, US State Department spokesperson Vedant Patel told reporters that the sanctions on Iran remained in place, and that Washington would enforce them.

Prof. Sujata Ashwarya from the Centre for West Asian Studies at Jamia Millia Islamia in New Delhi said it was not likely that sanctions would affect India, as its presence was helping deter China — the main rival of the US — from becoming involved in the Iranian port.

“(India) will effectively keep China out of the project,” Ashwarya said. “If we are there, then China won’t be there, and the US would not impose sanctions.”

Located in Iran’s southeast, Chabahar is less than 100 km from Gwadar in southwestern Pakistan — a flagship project of the multibillion-dollar China–Pakistan Economic Corridor under Beijing’s Belt and Road Initiative.

Ashwarya said the Iranian port is Gwadar’s potential competitor.

“It is an investment in trade facilitation with an eye on making Chabahar a hub,” she said.

“It provides competition to Gwadar, it could potentially lead to a secured corridor to Afghanistan and Central Asia, which means that India’s trade with these regions can flourish and broaden.”


Haldiram’s: India’s beloved snack maker eyed by foreign investors Blackstone, UAE wealth fund

Updated 14 May 2024
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Haldiram’s: India’s beloved snack maker eyed by foreign investors Blackstone, UAE wealth fund

  • Haldiram’s started in 1937 from “tiny shop” in Bikaner in desert state of Rajasthan
  • Haldiram’s has almost a 13% share of India’s $6.2 billion savoury snacks market

From fried Indian snacks to local sweet delicacies, family-run Indian snack maker Haldiram’s has long been one of the country’s most popular food brands. Now, foreign investors like Blackstone and Abu Dhabi Investment Authority want a big bite of it.

Haldiram’s was last year also an acquisition target for India’s Tata Group, one of the country’s biggest conglomerates.

Here are some facts about the popular Indian brand:

* Haldiram’s started in 1937 from a “tiny shop” in Bikaner in the western desert state of Rajasthan. It later expanded to New Delhi in 1983.

* The company’s website says it has 1,000 distributors and its products are available in 7 million outlets. It also exports to many foreign countries including Japan, Russia, United Kingdom and Australia.

* One of its most popular snacks is “bhujia,” a crispy fried Indian snack made with flour, herbs and spices and sold for as little as 10 rupees (12 US cents) across mom-and-pop stores. Haldiram’s calls it “an irresistible Indian snack” which can “captivate your taste buds.”

* Haldiram’s started exporting products in 1993. The US was its first market, where it began with 15 savoury products, and later, in 2016, opened its first overseas factory in the UK.

* Beyond snacks, Haldiram’s also sells ready-to-eat and frozen foods such as Indian curries and rice items. It also runs more than 150 restaurants which sell street-style Indian food, as well as Chinese and western cuisine.

* Last year, during deal talks with Tata, Haldiram’s was seeking a $10 billion valuation. Reuters has previously reported Haldiram’s annual revenues are around $1.5 billion.

* Haldiram’s has almost a 13% share of India’s $6.2 billion savoury snacks market, Euromonitor International estimates.

($1 = 83.5200 Indian rupees)


Internally displaced people reached 76 million in 2023 – monitoring group

Updated 14 May 2024
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Internally displaced people reached 76 million in 2023 – monitoring group

  • Almost 90 percent of the total displacement was attributed to conflict and violence
  • The group reported a total of 3.4 million movements within Gaza in the last quarter of 2023

GENEVA: Conflicts and natural disasters left a record nearly 76 million people displaced within their countries last year, with violence in Sudan, Congo and the Middle East driving two-thirds of new movement, a top migration monitoring group said Tuesday.
The Internal Displacement Monitoring Center report found that the number of internally displaced people, or IDPs, has jumped by 50 percent over the past five years and roughly doubled in the past decade. It doesn’t cover refugees — displaced people who fled to another country.
The report tracks two major sets of information. It counted 46.9 million physical movements of people in 2023 — sometimes more than once. In most of those cases, such as after natural disasters like floods, people eventually return home.
It also compiles the cumulative number of people who were living away from their homes in 2023, including those still displaced from previous years. Some 75.9 million people were living in internal displacement at the end of last year, the report said, with half of those in sub-Saharan African countries.
Almost 90 percent of the total displacement was attributed to conflict and violence, while some 10 percent stemmed from the impact of natural disasters.
The displacement of more than 9 million people in Sudan at the end of 2023 was a record for a single country since the center started tracking such figures 16 years ago.
That was an increase of nearly 6 million from the end of 2022. Sudan’s conflict erupted in April 2023 as soaring tensions between the leaders of the military and the rival Rapid Support Forces broke out into open fighting across the country.
The group reported a total of 3.4 million movements within Gaza in the last quarter of 2023 amid the Israeli military response to the Oct. 7 attacks in Israel. That means that many people moved more than once within the territory of some 2.2 million. At the end of the year, 1.7 million people were displaced in Gaza.
Group director Alexandra Bilak said the millions of people forced to flee in 2023 were the “tip of the iceberg,” on top of tens of millions displaced from earlier and continuing conflicts, violence and disasters.
The figures offer a different window into the impact of conflict, climate change and other factors on human movement. The UN refugee agency monitors displacement across borders but not within countries, while the UN migration agency tracks all movements of people, including for economic or lifestyle reasons.