Wealth
The sharing of family wealth has been a critical component in maintaining the semblance of a united front within the royal family. An essential part of family wealth is the Kingdom in its physical entirety, which the Al Saud view as a totally owned family asset. Whether through the co-mingling of personal and state funds from lucrative government positions, huge land allocations, direct allotments of crude oil to sell in the open market, segmental controls in the economy, special preferences for the award of major contracts, outright cash handouts, and astronomical monthly allowances—all billed to the national exchequer—all told, the financial impact may have exceeded 40% of the Kingdom's annual budget during the reign of King Fahd. Over decades of oil revenue-generated expansion, estimates of royal net worth is at well over $1.4 trillion. This method of wealth distribution has allowed many of the senior princes and princesses to accumulate largely unauditable wealth and, in turn, pay out, in cash or kind, to lesser royals and commoners, and thereby gaining political influence through their own largesse.
During periods of high oil prices as were the late 1970s, the early 1980s, and again, immediately after the 2003 US invasion of Iraq, national income has outpaced the developmental needs and social obligations of the Saudi government and the effects of royal skimming were diminished. According to well-publicized but unsubstantiated reports, King Abdullah has intentions to reduce the Al Saud share of the budget, an act which may sow discontent within the royal family, but would be popular with the Kingdom's citizenry.
Read more about this topic: House Of Saud
Famous quotes containing the word wealth:
“General education is the best preventive of the evils now most dreaded. In the civilized countries of the world, the question is how to distribute most generally and equally the property of the world. As a rule, where education is most general the distribution of property is most general.... As knowledge spreads, wealth spreads. To diffuse knowledge is to diffuse wealth. To give all an equal chance to acquire knowledge is the best and surest way to give all an equal chance to acquire property.”
—Rutherford Birchard Hayes (1822–1893)
“There is something to be said for jealousy, because it only designs the preservation of some good which we either have or think we have a right to. But envy is a raging madness that cannot bear the wealth or fortune of others.”
—François, Duc De La Rochefoucauld (1613–1680)
“Science, which cuts its way through the muddy pond of daily life without mingling with it, casts its wealth to right and left, but the puny boatmen do not know how to fish for it.”
—Alexander Herzen (1812–1870)