Al-Fahim’s sale comes just six weeks after buying the club.
Al-Fahim will keep a 10 per cent share of the club and will move to a role as a non-executive chairman.
A statement on Portsmouth’s official website said: “Sulaiman Al-Fahim, the owner of Portsmouth football club, has sold the majority – 90 per cent – of the club to Falcondrone Limited, a company owned by Saudi-Arabian businessman Mr Ali Al-Faraj.”
A Pompey spokesman quoted on the club’s website said: “The takeover will ensure Portsmouth football club’s future is safe and will bring financial stability.
“Once the takeover is complete the club will undergo refinancing in order to grow and develop every part of the business.
“Mr Al-Faraj is very supportive of the club’s plans for a new training ground and the development of Fratton Park.”