If you aren’t familiar with Qatar Holding, it’s a sovereign wealth fund incorporated in 2006 to serve as the prime investment vehicle of the emirate. In its latest move, the fund adds arguably the world’s most famous department store to its mounting investments in the UK, which include the supermarket chain Sainsbury’s, some skyscrapers in the London financial district of Canary Wharf, stakes in British lender Barclays as well as the London Stock Exchange.
“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. This acquisition further expands our global portfolio of world-leading companies,” Ahmad al-Sayed, chief executive officer of Qatar Holding, said in a statement.
In terms of raw figures, Harrods attracts roughly 15 million customers each year and is in fact the UK's second-biggest shop, occupying an 18,000-square-metre site in the heart of Knightsbridge with over 90,000-square-metres of selling space across 330 departments. It was founded by Charles Henry Harrod in 1834 as a wholesale grocery shop in east London but moved to a smaller site at its current location in 1849 when Mr. Harrod wanted to escape the crime of London’s East End and benefit from trade from the Great Exhibition. A fire in 1883 burned the old building down and the current one was built in its place. Ever since, it has enjoyed its status as a world-famous shopping destination, changing hands a couple of times including the purchase by Mohammed Al Fayed in 1985.
Twenty-five years on and a new chapter has been added to Harrods’ long and illustrious history in an intriguing move that is sure to be closely observed the world over. By taking on such an establishment, Qatar Holdings has clearly moved into the sphere of public interest, while at the same time conducting an extremely shrewd piece of business as the opportunity to reap the benefits of a revitalised Harrods could well result in significant rewards.
WHO Qatar Holdings LLC
WHAT Acquisition of Harrods from Mohammed Al Fayed
DETAILS 2.2 billion USD deal announced in May 2010
WHY Qatar Holding has conspicuously furthered its blue-chip holdings but it has also promised a dynamic rejuvenation of the ailing British institution.
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