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:
“The first wealth is health.”
—Ralph Waldo Emerson (1803–1882)
“No man, however benevolent, liberal, and wise, can use a large fortune so that it will do half as much good in the world as it would if it were divided into moderate sums and in the hands of workmen who had earned it by industry and frugality. The piling up of estates often does great and conspicuous good.... But no man does with accumulated wealth so much good as the same amount would do in many hands.”
—Rutherford Birchard Hayes (1822–1893)
“What potent blood hath modest May;
What fiery force the earth renews,
The wealth of forms, the flush of hues;
Joy shed in rosy waves abroad
Flows from the heart of Love, the Lord.”
—Ralph Waldo Emerson (1803–1882)