Born in Egypt, as the eldest son of a primary school teacher, Fayed tried a number of jobs, from selling Coca-Cola on the streets of his home city to working as a sewing machine salesman and as a teacher. He made his money after he married the sister of the international arms dealer Adnan Khashoggi, who employed him in his import business in Saudi Arabia.

After establishing wide circles of influence in the UAE, Haiti, and London, Fayed founded his own shipping company in Egypt before becoming a financial adviser to the Sultan of Brunei in 1966. He arrived in Britain in 1974 and added the Al- to his name, earning the Private Eye nickname "the Phoney Pharaoh".

Losses at his world famous Harrods store have been running at around US$16m a year but Harrods Holdings consists of more than the famous Knightsbridge department store that attracts 300,000 people on its busiest days. Its interests include banking, travel and aviation. Sales reached US$1.4bn in the year to January 2005.

The Harrods owner has been overseeing the modernisation of the Knightsbridge flagship and its fashion credentials are stronger now as they have been for many years. In a first for the legendary department store, Harrods opened Harrods 102, a convenience store opposite the main flagship in February.