Qatari Holdings, the investment arm of the Qatar Investment Authority, also has a significant stake (26%) in Sainsbury’s as well as VW-Porsche and the luxury hotel chain Fairmont.
Harrods is the most recent UK acquisition by the Gulf investment group, which is owned by the Qatari royal family and chaired by Sheikh Hamad al-Thani, the Qatari Prime Minister.
Al Fayed had previously denied that the luxury department store was up for sale following rumours of an unsolicited bid from the Gulf group. He has owned the luxury store since 1985.
He will become honorary chairman of the store but will not be involved in running the store.
In a statement Lazard International, which advised Al Fayed on the sale says the department store was sold to Qatar Holdings because it has the “vision and financial capacity to support the long term successful growth of Harrods.”
The store in Knightsbridge is a major tourist destination in London.
Al Fayed also owns Fulham Football Club, but has denied that he is also thinking about selling the club.