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:
“It is uncomfortable to ask condemned people about their sentences just as it is awkward to ask wealthy people why they need so much money, why they use their wealth so poorly, and why they don’t just get rid of it when they recognize that it is the cause of their unhappiness.”
—Anton Pavlovich Chekhov (1860–1904)
“Say I’m weary, say I’m sad,
Say that health and wealth have missed me,
Say I’m growing old, but add,
Jenny kissed me.”
—Leigh Hunt (1784–1859)
“As the Spanish proverb says, “He who would bring home the wealth of the Indies, must carry the wealth of the Indies with him.” So it is in travelling; a man must carry knowledge with him, if he would bring home knowledge.”
—Samuel Johnson (1709–1784)