Prince Alwaleed bin Talal, 56, the 26th richest man in the world according to Forbes and the second-largest investor in Rupert Murdoch's News Corp, could also be called before a judge on the Balearic island of Ibiza and asked to give a DNA sample.
The alleged victim claims that she was lured on to the yacht Turama after her drink was spiked in the VIP area of a night club on the island.
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Prince Alwaleed, the nephew of King Abdullah of Saudi Arabia denies the assault or even having visited Ibiza in the past decade. He could have been mistakenly identified after someone impersonated him, his spokesman claimed.
The alleged victim, who was 20 years old at the time, claims that she woke during a sexual assault on the boat by a man she claims was the prince.
An investigating magistrate stopped an inquiry into the allegations last year on grounds of insufficient evidence. But on appeal, the higher provincial court in Palma, Majorca, instructed the judge to reopen the case and question the prince.
A spokeswoman from the prince's investment arm, Kingdom Holding Company, said the allegations were ''completely and utterly'' false.
''The alleged encounter simply never happened,'' said Heba Fatani. ''Not only was Prince Alwaleed not in Ibiza at any time in 2008 but has not been in Ibiza for the last decade.
''Further, his yacht, Kingdom 5KR was not in Ibiza in 2008, nor has Prince Alwaleed ever chartered a yacht in Ibiza. He was nowhere near Ibiza when the alleged events took place.''
She said there had been many examples of people impersonating Prince Alwaleed
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