A billionaire sheikh who lives in what is reputedly London’s most valuable home has lost his bid to snatch one of the world’s most expensive jewels from his Qatari royal relatives.
London-based art collector Sheikh Hamad bin Abdullah Al-Thani said he had the legal right to buy the spectacular 70.21 carat diamond known as the ‘Idol’s Eye’.
Qatar’s multi-billionaire Al-Thani family went to court last November over the blue tinged diamond which was discovered in the Golconda mines of the Mughal empire more than 400 years ago
It was formerly owned by an Ottoman sultan and, according to legend, was kept as the eye of a secret idol in the Temple of Benghazi.
It is owned by a foundation set up by the late Qatari culture minister, Sheikh Saud bin Mohammed Ali Al-Thani,who bought it or £7million in 2004.
A cousin of the family, art collector Sheikh Hamad bin Abdullah Al Thani, launched a High Court tug-of-war over ownership of the jewel last year.
The sheik is a leading figure in British horse-racing and senior members of the Royal Family, including the King and the late Queen, have been guests at his home.
He claimed that through his investment company Qipco he had the right to buy the stone for £7.8m after the Al-Thani family offered it for sale at the height of the Covid-19 pandemic in 2020.
The 70.21 carat Mughal-era blue tinged diamond was formerly owned by an Ottoman sultan. It is thought to have been found in the Golconda mines in southern India in 1600
Art collector Sheikh Hamad bin Abdullah Al Thani launched a High Court tug-of-war over ownership of the jewel last year
Hamad bin Abdullah Al-Thani has close ties to British royalty. He is seen here with the late Queen Elizabeth II in 2013
But the Al-Thani linked company which legally owns the diamond, Elanus, which itself is owned by the family foundation, fought the case, claiming that no firm ‘wish’ to sell had ever been communicated.
The late sheikh’s son, Sheikh Hamad bin Saoud Al-Thani, allegedly had been interested in selling to fund property deals but had not consulted his mother or siblings.
Directors said the gem could be worth far more than the claimed sale price, with one expert putting its value at about £21million.
Today Judge Simon Birt rejected cousin Sheikh Hamad bin Abdullah’s Qipco company’s claim to be entitled to purchase the sought-after gem.
He said the late sheikh’s son had only ever been ‘keen to explore’ the possibilities of a sale but had ‘not reached a final decision definitely to sell.’
It was also ‘very clear’ other family members did not wish to sell and that, even if anyone of them did, their ‘wish’ could not attributed to the company which actually owns the diamond.
‘It is said to have been owned by the 34th Ottoman Sultan, Abdul Hamid II, who allegedly kept it as the eye of a secret idol in the Temple of Benghazi,’ Qipco barrister Robert Stewart told the court.
Later it was owned by high-end jeweller Harry Winston before later being bought by the late Sheikh Saoud for about £7million in 2004 and put into the name of a holding company, known as Elanus.
‘He kept it in his personal safe in his home in London,’ said Elanus barrister Sa’ad Hossain.
‘It was one of the most significant pieces in his collection, and one of the pieces he was most proud of.
‘It is also of particular personal importance to his wife, Sheikha Amna.’
The gem was put into the name of Elanus for inheritance planning reasons and then loaned to family cousin Sheikh Hamad bin Abdullah’s company Qipco in 2014 to be included in his Mughal collection at lavish exhibitions.
Part of the loan agreement allowed for Qipco to purchase the diamond if Elanus made clear a ‘wish’ to sell, with the price based either on independent valuations gathered by the selling and buying parties, or US$10million (about £7.8m), whichever was higher.
Sheikh Hamad bin Abdullah’s $400m Mayfair home, Dudley House, (pictured) is reportedly Britain’s most expensive private residence
Sheikh Saoud died in November 2014, leaving behind his widow, Sheikha Amna, daughters Sheikha Sara and Sheikha Moza, and son Sheikh Hamad bin Saoud.
Lawyers for Qipco say that the process of purchasing the diamond was put into train in February 2020 with a letter from Elanus’ Swiss solicitor.
Referencing the ‘loan agreement between Elanus and Qipco,’ it stated: ‘I just learned from Sheikh Hamad, the son of the late Sheikh Saoud Al Thani, that the family would like to sell the Idol’s Eye.’
Qipco said it then began the purchasing process, but that the Al-Thani family went back on the offer, which they were not entitled to do under the terms of the loan agreement.
It sued to enforce the sale at a price of $10million but Elanus’ lawyers claimed the letter taken as an offer to sell was a ‘mistake’ and could not be taken as stating the company’s ‘wish’ to get rid of the diamond.
It had been sent after the late sheikh’s son began considering the possibility of a sale to fund property deals, said Mr Hossain.
‘Although the 6 February letter said that the family wished to sell the Idol’s Eye, they did not,’ the barrister told Judge Simon Birt.
‘Indeed, they had not even discussed or considered it.
‘As for Elanus and its ultimate beneficial owner, the Foundation, they had not even been consulted, let alone formed any ‘wish’.
‘Even Sheikh Hamad bin Saoud, who set in motion getting advice on pre-emption and the drafting of the letter, had only sought to explore the possibility of a sale at the right price.
‘When the rest of the family learned of the letter, they were understandably shocked, and corrected the position to Qipco – well before Qipco served any purchase notice.
‘It is Qipco’s flat refusal to accept that withdrawal, and instead to insist on completing the purchase without Elanus’s consent, that has also led to this dispute.’
Additionally, the diamond is owned by the company Elanus and not the Al-Thani family and the letter could not be construed as an offer from the company, he added.
The Idol’s Eye diamond was previously kept in the London home of the late Qatari culture minister, Sheikh Saoud bin Mohammed Ali Al-Thani (pictured), who died in 2014
Judge Birt found that there had never been any ‘wish’ of Elanus to sell the diamond such as to trigger Qipco’s entitlement to buy.
‘Although Sheikh Hamad bin Saoud Al-Thani was keen to explore how a sale could be effected and what price could be achieved, he had not reached a final decision definitely to sell, and he did not have a settled intention to carry a sale into effect,’ he said.
‘He did not, therefore, ‘wish’ to sell the diamond within the meaning…of the loan agreement.’
He continued: ‘Whatever the intention or wish of Sheikh Hamad bin Saoud Al-Thani in the period February to April 2020, it is very clear that none of the other members of his family shared any wish to sell the diamond.’
But even if the family had formed a ‘wish’ to sell, that could not then be attributed to the actual owner, which is the company, Elanus, he said.
He added: ‘It is clear that Sheikh Hamad bin Saoud Al-Thani did not have actual authority from any of his family to deal with or sell the diamond, whether by way of a general authority or a specific authority in relation to the diamond.
‘He did not have a ‘wish to sell’…even if he did, it was not shared by and could not be attributed to the family or attributed to the foundation.’
Qipco’s claim to a right to buy the diamond was dismissed.
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