hmm..I dont really think of royals as fashion icons, aside from Princess Diana ofcourse. But she was as exception. No royal today has that sort of international profile.
I also dont think that dressing well makes a woman a fashion icon. Like some of the newer crown princesses, for example, they dress well and have great style but to apply the word "icon" to them is far fetched. Outside of their countries and to a larger degree in Europe in general, no one knows about them (we, royal watchers, are ofcourse the exception)
So as far as Im concerned, Princess Diana and Audrey Hepburn are the ultimate fashion icons. Both of these women are dead but continue to have an impact on the international fashion industry. Almost all the top designers today mention Audrey Hepburn as an inspiration at one point or another in their career. That, to me, is an icon.
Now if we're talking about royals, I was thinking of Queen Rania. While I still dont think she's a fashion icon, I think she comes the closest. She does have a high profile outside of her own country and region, and she has been praised by top designers for her immense sense of style (Armani called her the most alluring woman in the world)
To a lesser degree, Queen Noor's lovely caftans have been quite an inspiration for many designers lately. She has been wearing them almost exclusively for formal events for the past couple of years whether she's in Jordan, or the US, or Europe, anywhere in the world basically. First I saw a caftan that was exactly the style Queen Noor wears on a very high profile fashion show. And now we see similar tops and short dresses making appearances all over the place.
ps...I see some people have mentioned royals. I guess we're talking strictly about royal "fashion icons" and not the truly internatonal ones.