Sheikh Mohammed bin Rashid al-Maktoum, the billionaire ruler of Dubai, must pay around £554 million (€650 million) in child maintenance and security costs to his estranged wife Princess Haya and their two children, in what is believed to be the largest post divorce financial settlement awarded by an English court.
Mr Justice Moor said on Tuesday the Dubai ruler must pay a lump sum of £251.5 million in three months, which will include the cost of the princess's security for her lifetime. He must also provide a £290 million HSBC bank guarantee underpinning an annual £11 million maintenance payment, as well as ongoing security costs for the two children as adults, £3 million to cover their education and £9.6 million in maintenance arrears.
The high court case has given a rare glimpse into the world of the Gulf elite and their staggering wealth which the judge said in his ruling was “a truly opulent and unprecedented standard of living”.
It has also led to scrutiny and embarrassing revelations about Sheikh Mohammed, the vice-president and prime minister of the United Arab Emirates who is one of the Middle East's highest profile leaders.
The exact amount of the award is difficult to value because the court has ordered that the 72-year-old Sheikh Mohammed should pay annual security costs of millions of pounds for his two children, aged nine and 14, for the rest of their lives or until a further court order.
It is thought to be the biggest such financial settlement in London – which is known as the divorce capital of the world after a string of generous multimillion pound awards for spouses.
The court’s ruling notes that the princess’s annual 2019 budget as wife of the ruler of Dubai was £72.9 million and through trust structures she has a £95 million home near Kensington Palace with five housekeepers and a handyman plus a £4.5 million Windsor mansion.
Princess Haya, who fled Dubai for London in 2019, had sought £1.4 billion from Sheikh Mohammed in London’s high court for maintenance for their two children. She opted not to claim money in her own right as an ex-wife – except for the costs of her lifetime security plus £97 million compensation claimed for personal items such as her jewellery collection of diamonds, pearls, sapphires and emeralds which she left in Dubai.
She claimed the collection was worth £20 million and could fill an entire courtroom. The judge awarded her £20.9 million for personal possessions – including £13.6 million for jewellery.
Tarnished reputation
The financial settlement marks a final stage in one of the most bitter battles between the estranged couple which led to a ruling by a high court judge in October that said Sheikh Mohammed was prepared to use his “immense wealth, political power and international influence” against the 47-year-old princess and to allow his agents to hack her phone using NSO Group’s controversial Pegasus military-grade spyware.
The findings have tarnished the international reputation of Sheikh Mohammed who has deep ties to the British establishment. He has been a guest of the Queen at Royal Ascot and a major player in the horseracing world through his Godolphin stables.
Princess Haya, daughter of the late King Hussein of Jordan, has been receiving interim maintenance and told the court that since she arrived in Britain in 2019 she has been "fast eroding her capital", according to details contained in the ruling.
“She said that her financial position was so bad that she was fast approaching the point where she would have to sell paintings, but she did not wish to do so as the children would then see what she was doing as there would be gaps on the walls of the property,” the judge’s ruling noted.
The judgment also noted that the princess dealt with alleged blackmail claims against her by paying £6.7 million to four security operatives, although the judge’s ruling makes it clear the court heard no evidence from the alleged blackmailers.
The biggest item in the maintenance award is for the cost of providing security for Princess Haya and her children. Sir Andrew McFarlane, president of the courts' family division, previously found that Sheikh Mohammed "constitutes a grave risk" to the security of the princess and the children.
“Most importantly in this regard, and absolutely uniquely, the main threat they [children and Haya] face is from HH [his highness] himself, not from outside sources,” the judge said in the ruling, adding this was “compounded by the full weight of the state that he has available to him”. He noted Princess Haya testified that she felt “hunted” by her former husband.
Expenditure
Sheikh Mohammed said in a position statement cited in the ruling that he had “no intention” of causing harm to Princess Haya, had no “hacked” material in his possession and “there was no surveillance undertaken with his express or implied authority”. In October he contested the court’s hacking ruling stating it was based on incomplete evidence.
The ruling shines a light on the family’s spending. Details of Princess Haya’s £35.64 million of expenditure from December 2019 to September 2021 was shown to the court – including £397,421 spent on UK holidays in 2021 plus £77,770 on holiday security.
The family's holiday costs at a hotel in Italy one summer were £631,000 plus £180,000 in flight costs. A further €274,000 was spent at a hotel in Greece plus £210,000 flight costs due to the need to have a private plane. Another £55,000 a week was required for expenses, including the hire of a private yacht.
The maintenance award allots the children a £5 million annual budget for seven separate holidays over nine weeks – including £1.8 million for private plane flights. The judge has allowed £1 million a year for leisure costs and £277,050 a year for the upkeep of the children’s animals, as well as £100,000 a year for a private tutor and £111,295 per year for a nanny.
A spokesman for Sheikh Mohammed said in a statement: “He has always ensured that his children are provided for. The court has now made its ruling on finances and he does not intend to comment further. He asks that the media respect the privacy of his children and do not intrude into their lives in the UK.” – Copyright The Financial Times Limited 2021