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 must not be thought that the cowardly feeling of caution and uneasy self-preservation is innate in the English character. It is the consequence of a corpulence derived from wealth and of the training of all thoughts and passions for acquisitiveness.”
—Alexander Herzen (1812–1870)
“The Landlord is a gentleman ... who does not earn his wealth. He has a host of agents and clerks that receive for him. He does not even take the trouble to spend his wealth. He has a host of people around him to do the actual spending. He never sees it until he comes to enjoy it. His sole function, his chief pride, is the stately consumption of wealth produced by others.”
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