Qatar-owned Harrods’ abuse redress scheme nears deadline

Alleged victims of sexual abuse by the late Mohamed Al Fayed, the former owner of luxury London department store Harrods, have until March 31 to apply to the retailer’s £60 million ($76 million) compensation scheme. 

Multiple women have accused Al Fayed, who died in 2023 aged 94, of rape and sexual assault. The Metropolitan Police said on March 6 that 154 victims have come forward to report a crime as part of its investigation. 

Harrods, owned by sovereign wealth fund Qatar Investment Authority (QIA) since 2010, has set aside £62.3 million to compensate victims in its Harrods Redress Scheme. 

Other legal and lobby actions are expected to continue beyond March 31. These include a separate claim on behalf of hundreds of alleged victims, and a campaign group – the All Party Parliamentary Group (APPG) for Survivors of Fayed and Harrods – comprising alleged victims, lawyers and MPs. 

At least 180 women have applied to the scheme to date and could be able to claim £200,000 each or more, Harrods said.   

The amount set aside is only a fraction of Harrods’ £1 billion of 2025 revenues but around a third of its operating profit, according to accounts filed with the UK’s Companies House in October. 

The accounts show a loss before tax of £36.5 million compared with a profit of £111 million the year before, attributed in part to Harrods’ strategic digital transformation, but also to the provision for “redress and associated costs for survivors of historical abuse linked to Al Fayed”. 

Al Fayed owned Harrods between 1985 to 2010, when he sold the company to QIA for £1.5 billion. AGBI has contacted QIA for comment. 

• QIA makes ‘strategic’ investment in US AI chip startup
• Andrew Cunningham: Qatar has built prosperity. What comes next?
• Rolls-Royce nuclear offshoot wins $3bn UK contract

Maire Morris, chief executive of Gulf-based retail consultancy Morris Global Consulting, said: “While £60m is a significant figure, for a business like Harrods it’s unlikely to create any lasting operational impact. 

“Luxury retailers of this scale are built on strong margins, global demand and, in this case, sovereign backing, so the financial hit is manageable. 

“The bigger consideration is brand perception. In luxury, trust and reputation carry far more weight than a one-off cost.”