Khashoggi became one of the world’s richest men by brokering international weapons deals.
He is survived by his wife Lamia,” a statement from the family said.
Saudi arms dealer Adnan Khashoggi, a billionaire known for his lavish lifestyle, and who once owned Kenya’s Ol Pejeta Ranch has died in London at the age of 82.
His family said he died while being treated for Parkinson’s disease.
His parties were legendary, often lasting for days, but there was also controversy about his business.
“He lived his last days surrounded by his devoted family, children and grandchildren, with the same elegance, strength and dignity that characterised his remarkable life.
It added that Khashoggi achieved global recognition in a golden age through his “extraordinary business achievements and generosity”.
“Our father combined commercial acumen with an over-riding loyalty to his country. His work always furthered the interests of his country,” the statement went on.
He mostly brokered arms deals between US firms and Saudi Arabia in the 1960s and ‘70s, when he worked closely with the Lockheed Corp, now Lockheed Martin.
Later, Khashoggi represented France in its race against the UK to secure the initial $20billion al-Yamamah weapons-for-oil deal with the Saudis — a contract that still runs.
In 1987 he appeared on the cover of Time magazine under the headline: “Those Shadowy Arms Traders: Adnan Khashoggi’s High Life and Flashy Deals”.
He spent time in a Swiss prison in the 1980s, where he reportedly dined on gourmet food from the Schweizerhof Hotel, fighting extradition to the US after being accused of helping to conceal funds on behalf of Filipino president Ferdinand Marcos and his shoe-loving wife, Imelda.
The charges were reduced, and he and Mrs Marcos were acquitted.
Donald Trump bought Khashoggi’s Nabila yacht and renamed it Trump Princess. The 86-metre Nabila, was once one of the world’s largest yacht and appeared in the James Bond film Never Say Never Again.
When his business empire ran into difficulties, Khashoggi handed the yacht to the Sultan of Brunei who sold it to Donald Trump for $29 million.
Khashoggi, whose sister Samira was married to former Harrods chief Mohamed Al Fayed, was an uncle of Princess Diana’s final love, Dodi Fayed.