Herbert Smith and Latham & Watkins have taken lead roles on opposite sides of the £1.5bn sale of Harrods to the Qatari royal family.

The deal sees Mohamed Al Fayed's 25-year tenure as owner of the iconic Knightsbridge department store come to an end, although he will take on the new role of honorary chairman.

The deal was carried out by Qatar Holdings, the investment arm of the Qatar Investment Authority, the emirate's sovereign wealth fund.

Latham acted for the Qatari royal family, with corporate partner and London office head Nick Cline heading up the law firm's team alongside fellow corporate partner Mike Bond.

The US firm has a strong presence in the region after last December advising the Qatari Ministry of Economy and Finance on a $7bn (£4bn) offering, the largest-ever bond issuance in the Middle East.

Herbert Smith advised the Al Fayed Family Trust, with corporate partner Roddy Martin leading the firm's team supported by corporate senior associate Mike Flockhart.

The City firm has advised Al Fayed for 20 years, with corporate partner Chris Parsons the current client relationship partner.

Martin commented: "Chris and I are delighted to have advised on a very successful exit – both in terms of the price obtained and the alignment of Qatar Holdings with the current owners' visions and traditions."

However, the deal is unlikely to be seen as an unequivocal indication of a recovery for the UK retail sector, with one City corporate partner commenting: "The question is whether there is anything else of quite this calibre that is out there – you have to distinguish that Harrods is a unique asset."