Mr Al Fayed, pictured in 2015
Born in Egypt, he built a business empire in the Middle East before moving to the UK in the 1970s.
However, he never realised his ambition to gain a passport for his adopted country.
He spent his later years questioning the circumstances surrounding the deaths of Dodi and Diana.
Mr Al Fayed had remained largely out of the public limelight in the past decade, living in his Surrey mansion with his wife Heini.
In a statement released on Friday, his family said: "Mrs Mohamed Al Fayed, her children and grandchildren wish to confirm that her beloved husband, their father and their grandfather, Mohamed, has passed away peacefully of old age on Wednesday August 30, 2023.
"He enjoyed a long and fulfilled retirement surrounded by his loved ones."
-- Courtesy of BBC News