How does the saudi royal family make money

how does the saudi royal family make money

The year-old heir will ascend to the throne after the death of his father, year-old King Salman bin Abdulaziz Al Saud. Prince Mohammed is known for his lavish spending. The crown prince has become a controversial global fmily figure, particularly in the fall ofwhen he faced global outcry over the death of journalist Jamal Khashoggiwho the CIA later concluded was assassinated on the prince’s ma,e. Here’s a look at the lavish — and controversial — lifestyle of Crown Prince Mohammed bin Salman. He was named crown price in June after his father, King Salman, decided to remove Muhammad bin Nayef from the position. After graduating, he worked for several state agencies before being appointed as a special adviser to his father inwho was serving as governor of Riyadh at the time. Three years later, King Abdullah bin Abdul Aziz died and the prince’s father took the throne at the age of The prince is known to be a «workaholic» who spends 18 hours of the day in his office, according to The Guardian.

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Still, that monarchy is far from being the richest royal family in the world. That distinction likely goes to the House of Saud, the ruling royal family of Saudi Arabia. For reference, that’s nearly 16 times the British royal family’s net worth. Much like their British counterparts, the members of the Saudi royal family are notoriously private about their fortune. But what is known, suggests an envious lifestyle filled with big spending, private jets, luxury yachts, top of the line helicopters, sprawling chateaus and a palatial estate decked out with gold furniture — including a gold-plated Kleenex dispenser. However, members of the family also provide money to those in need through charitable organizations and invest in the Saudi people. More recently, the country pledged millions to a World Bank fund for female entrepreneurs. Their riches stem from the vast oil reserves uncovered more than 75 years ago, under the reign of King Abdulaziz ibn Saud.

Dipping Into the Till

If that estimation is correct, it would be one of the world’s most profitable oil companies. One of the most influential members of the royal family is King Salman of Saudi Arabia , who succeeded his late brother Abdullah bin Abdulaziz Al Saud in In an effort to clamp down on corruption last year, the crown prince forced the country’s richest people to turn over their fortunes to the state , including many of his own relatives. As a result, Forbes dropped ten Saudis from its annual list of the world’s billionaires. He reportedly also owns two homes in London and a compound on Spain’s southern coast. I’m not Gandhi or [Nelson] Mandela,» he said. He also claimed that a large share of his wealth goes toward charity. Like this story?

The prince has a bachelor’s degree in law from King Saud University, the oldest university in Saudi Arabia.

Boasting fortunes running into the tens, hundreds and even thousands of billions, the richest royal families in the world make the likes of Bill Gates and Jeff Bezos look decidedly hard up. Click ahead as we reveal the regal houses with the highest net worths, counting down from the 10th wealthiest to the most moneyed ruling family on the planet,. The sheikh also owns luxury properties in Europe, as well as one of the world’s largest yachts. Daniel Coughlin. Petrol, diesel prices see cut today. Check latest rates. Q3 preview: India Inc to see de-growth in sales. Shop Now! Ad Amazon. MSN on Facebook. Ad Share the stories that matter to you. Join MSN on Facebook. Windows Ad Do great things with the most personal and productive Windows yet.

A Kingdom of Oil

That was interpreted by some as a sign to commoners that no one was above the law; others described it as a signal to royals that they would not be protected from the consequences of their actions. The United States memo cited Prince Alwaleed bin Talal, the billionaire investor, as having told the American ambassador that revenue from one million barrels of oil per day went into off-budget programs under the control of the king and several top princes. Aside from that i don’t know a lot. The family members have erected high walls around their palaces, bought overseas assets with shell companies, used intermediaries for large investments and demanded nondisclosure agreements from employees. Answer Save. Even people who closely follow the Saudi royal family said they could not estimate its total assets. Three princes who were living abroad and had spoken out against Saudi policy have disappeared from view since King Salman came to power. Prince Bandar bin Sultan, a longtime ambassador to the United States, and Prince Abdulaziz bin Fahd, a favored son of the late King Fahd, made hundreds of millions of dollars selling the land for a centrally planned megacity north of Jidda that is still under construction, according to an American diplomat in a memorandum. During his visit this summer, some hundred black Mercedes sedans and Range Rovers were waiting to chauffeur the royal party around town. AM Lv 4. Others are involved in enterprises that depend on government spending doled out by relatives or that thrive on heavy state subsidies.

What Is Crown Prince Mohammed bin Salman’s net worth?

Prince Bandar dows Sultan, a longtime ambassador to the United States, and Prince Abdulaziz bin Fahd, a favored son of the late King Fahd, made hundreds of millions of dollars selling the land for a centrally planned megacity north of Jidda that is still under construction, according to an American diplomat in a memorandum. King Abdulaziz entered into numerous marriages — with 17 known wives, producing at least 36 sons — to cement alliances with the many Arabian tribes. Exactly how benefits are parceled out beyond seniority and service is unknown, said Hte. His body was later buried at sea. They do own land- in fact their the worlds largest landowners. Three princes who deos living abroad and had spoken out against Saudi policy have disappeared from view since King Salman came to power.

A Kingdom of Oil

These are anxious times for the royals, led by an year-old who has already had at least one stroke and is likely to be the last of six sons of the founding monarch to serve as sovereign. He must wrangle a band of relatives, from the merely well-off to billionaires, who are accustomed from birth to privilege and plenty. In his two-year reign, King Salman has upended the traditions of successioncreating rifts after bypassing several brothers to position the next generation — a nephew and a favorite son — in line for the throne.

He has ousted prominent members of other branches of the family from governorships and top ministry jobs, consolidating power but sowing some discontent in a family that demands unity. Many royals are wary of any disclosures about their wealth that could provoke public criticism.

Revenues from the national oil company, Saudi Aramco, have long been the lifeblood of government spending. That concern has led some senior family members to quietly explore alternatives to the privatization plan, though Saudi officials said it remains on track. Facing huge budget gaps, the government has cut public-sector pay along with subsidies, sending gasoline, electricity and even water bills higher.

The kingdom has begun borrowing by the billions both at home and abroad. And hiring by the government — a large and sought after employer for Saudis — has been cut, instilling fear for the future in younger people who cannot find work.

Royals are sharing the pain, according to Anas al-Qusayer, the spokesman for the Ministry of Culture and Information, who said that their allowances had been reduced.

At least some royals, though, have seen no decline in their stipends, according to several Saudis close to the family. Some Saudi royals are still spending big.

Dania Sinno, a real estate agent with Belles Demeures de France, said that multiple family members had been buying property in Paris in the last year.

King Salman already had significant holdings in France. The king, of course, does not lack for options at home, with a network of marble-columned palaces and countryside retreats stretching from the Red Sea to the Persian Gulf. But the Tangier compound appears to be his current favorite getaway.

During his visit this summer, some hundred black Mercedes sedans and Range Rovers were waiting to chauffeur the royal party around town. The palace complex includes its own medical facilities and top-flight restaurant kitchens that turn out dishes with lobster, caviar and truffles flown in from France.

Many staff members had to leave their phones at the gate so photos did not leak. But a Twitter gadfly working under the pseudonym Mujtahiddwho has successfully predicted some major royal news in the past, broadcast to his 1.

Some on the household staff, who did not want to be identified so they could continue working for the Saud family, said they received an unusual gratuity when they handed in their ID badges: a free trip for a pilgrimage to Mecca. A Life magazine correspondent visiting in described how, as King Abdulaziz waited on a roadside while a flat tire was fixed on his Packard, he gave a shepherd passing on camelback several gold pieces.

Salman bin Abdulaziz was born injust three years after his father proclaimed the new Kingdom of Saudi Arabia. The power and legitimacy of the new state rested on the twin pillars of the royal family and their allies in the ultraconservative Wahhabi religious leadership. As a young prince, Salman recalled when the family still lived in tents part of the year, as he has recounted to Secretary of State John Kerry.

King Abdulaziz entered into numerous marriages — with 17 known wives, producing at least 36 sons — to cement alliances with the many Arabian tribes. Salman, believed to be the 25th son, had one advantage in this sprawling, competitive family, where royal succession does not always follow a straight line. His mother, Hassa al-Sudairi, was a favorite wife of the king, and Salman was one of seven full brothers, a powerful bloc known as the Sudairi Seven.

In contrast to the traditional robes and headdresses King Salman wears in public today, an early photo shows a dapper young man in a well-cut Western suit. In nearly half a century as governor of Riyadh, he presided over the explosion of a modest desert way station into a metropolis with millions of inhabitants, along with skyscrapers, multilane highways and palaces for the newly rich royals. The global shock of the oil embargo in sent prices soaring and petrodollars flooding into the country.

Despite imposing rigid adherence to a strict version of Islam on their subjects, some Saudi princes became fixtures at high-rolling pleasure capitals like Monte Carlo. The money is divided among many relatives and spread across several continents, making a precise accounting difficult.

The funding mechanisms are opaque by design. The share of the Saudi budget that ultimately makes its way into royal coffers is not disclosed. Even people who closely follow the Saudi royal family said they could not estimate its total assets. The family members have erected high walls around their palaces, bought overseas assets with shell companies, used intermediaries for large investments and demanded nondisclosure agreements from employees.

The records linked him to a yacht and multimillion-dollar properties in London — one a majestic home with a balustraded balcony near Hyde Park in the tony Mayfair district. Saudi Arabia is not nearly as affluent on a per-capita basis as Qatar or Kuwait, which are also rich from oil and gas but support far fewer people than their large neighbor. Both also have been hit hard by the low oil prices. Despite a robust social safety net — including free education and health care — there are poor Saudis, and many in the middle class barely make ends meet.

Princes and princesses can take advantage of privileges like special hospital wings decorated like palaces with five-star hotel service, and royal airport terminals with enormous chandeliers, intricate tilework and rich carpets. But even among royals, there are big differences between direct heirs to the kings and cousins on the fringes. Some younger princes live in large, but not palatial, modernist homes outside Riyadh that would not be out of place in upscale California neighborhoods.

They drive Range Rovers and boxy Mercedes S. And their ranks continue to swell. The relatives number in the thousands, but from there, estimates diverge, said Joseph A. Princess Basmah bint Saud, a daughter of King Saud, five years ago put the number of royals at 15, But the Saudi ministry spokesman, Mr. Qusayer, said there were no more than 5, members of the House of Saud. At some point, the family could grow too large to support. Members of the royal family rely on allowances, government jobs and positions in business, aided by the status and connections conferred by nobility.

Exactly how benefits are parceled out beyond seniority and service is unknown, said Mr. The Saudi spokesman, Mr. The largest share, he added, went to tribal and provincial leaders, not royals. The United States memo cited Prince Alwaleed bin Talal, the billionaire investor, as having told the American ambassador that revenue from one million barrels of oil per day went into off-budget programs under the control of the king and several top princes.

An adviser to several members of the family and a former senior American government official said that the off-budget programs still existed; it is unclear in what amounts. Both spoke only on the condition of anonymity, for fear of alienating the Saudi government. The line between family and state assets can be blurry.

United States officials have described in multiple memorandums significant land transfers to sons and grandsons of the king, and even outright grabs, such as one prince who simply had the fence line around his property slowly expand outward to encompass another 30 square miles. Prince Bandar bin Sultan, a longtime ambassador to the United States, and Prince Abdulaziz bin Fahd, a favored son of the late King Fahd, made hundreds of millions of dollars selling the land for a centrally planned megacity north of Jidda that is still under construction, according to an American diplomat in a memorandum.

Many royals have succeeded in business by acting as the exclusive agents for foreign companies in the kingdom. Others are involved in enterprises that depend on government spending doled out by relatives or that thrive on heavy state subsidies.

As the size of the family and the general population have grown, some observers say, the balance of rewards has become harder to maintain. Thousands of princes and princesses had free cellphones disconnected. Unlimited flights on the national airline, Saudia, were cut back so that large entourages no longer traveled gratis and blocks of tickets were no longer resold for profit. Suites at hotels in Jidda, paid year-round by the government, were relinquished.

King Abdullah also tried to reduce the practice of land-grabbing and the abuse of the visa system for guest workers. Some princes received block grants of visas and profited from selling them to the workers cooking, cleaning and building across the kingdom. Among those who opposed King Abdullah in paring back privileges and entitlements, according to diplomatic cables, were Prince Salman and his brother Prince Nayef. Senior members of the House of Saud are keenly aware that they lost their previous kingdom in the 19th century because of family infighting.

King Saud was deposed in and replaced by his brother King Faisal, who, in turn, was assassinated by a nephew. As governor of Riyadh, Salman helped oversee the family, even maintaining a jail for young princes who ran amok. Freeman Jr. He was also chairman of a major media company, Saudi Research and Marketing Group, which is used to protect the image of the royal family. Critical voices have been jailed or silenced. Oil prices had begun their precipitous decline, but it was not yet clear how far they would fall.

The king surprised his court by giving his son broad power, naming him defense minister, head of the economic council and ultimately responsible for Aramco. He also removed several sons of former kings from important positions. Freeman, the former ambassador. Last year, an anonymous letter by a nephew of the monarch was published online, calling on his uncles to remove their brother, King Salman.

Qusayer, the Saudi spokesman, said that information was wrong. Indeed, criticizing the monarchy carries risks. Three princes who were living abroad and had spoken out against Saudi policy have disappeared from view since King Salman came to power. They are believed to be back in Saudi Arabia, where they cannot voice their disagreements.

The Saudi spokesman said they were not in jail or under house arrest. In October, the government announced that a low-ranking prince had been executed for murder. That was interpreted by some as a sign to commoners that no one was above the law; others described it as a signal to royals that they would not be protected from the consequences of their actions.

While members of the family have been investing overseas for decades, the pace of buying homes abroad has quickened in the last two years, according to Ardavan Amir-Aslani, a business lawyer who has advised Saudi princes on real estate acquisitions in France. After Ramadan ended in July, many royals traveled to the Mediterranean. Prince Abdulaziz, the son of the late King Fahd, rode a Jet Ski this past summer off the Spanish island of Formentera within sight of his nearly foot yacht.

Prince Khalid, the exiled prince in Germany, said it would be difficult for the deputy crown prince, who has led the austerity drive, to squeeze his most important constituency if he wishes to reach the throne.

Predictions that divisions within the House of Saud could jeopardize its grip on power have come and gone for decades. Despite his advancing age, King Salman emerged this month for a tour of the Persian Gulf states, a reminder of who is in charge. Dipping Into the Till Members of the royal family rely on allowances, government jobs and positions in business, aided by the status and connections conferred by nobility.

How The Royals Earn Their Money


These are anxious times for the royals, led by an year-old who has already had at least one stroke and is likely to be the last of six sons of the founding monarch to serve as sovereign. He must wrangle a band of relatives, from the merely well-off to billionaires, who are accustomed from birth to privilege and plenty. In his two-year reign, King Salman has upended the traditions of successioncreating rifts after bypassing several brothers to sadui the next generation — a nephew and a favorite son — in line for the throne. He has ousted prominent members of other branches of the family from governorships and top ministry jobs, consolidating power but sowing some discontent in a family that demands unity.

Dipping Into the Till

Many royals are wary of any disclosures about their wealth that could provoke public criticism. Revenues from the national oil company, Saudi Aramco, have long been the lifeblood of government spending. That concern has led some amke family members to quietly explore alternatives to the privatization plan, though Saudi officials said it remains on track. Facing huge budget gaps, the government has cut public-sector pay along with subsidies, sending gasoline, electricity and even water bills higher. The kingdom has begun borrowing by the billions both at home and abroad. And hiring by the government — a large and sought after employer for Saudis — has been cut, instilling fear for the future in younger people who cannot find work. Royals are sharing the pain, according to Anas al-Qusayer, the spokesman for the Ministry of Culture and Information, who said that their allowances had been reduced. At least some royals, though, have seen no decline in their stipends, according to several Saudis close sauxi the family. Some Saudi royals are still spending big. Dania Sinno, a real estate agent with Belles Demeures de France, said that multiple family members had been buying property in Paris in the last year. King Salman already had significant holdings in France. The king, of course, does not lack for options at home, with a network of marble-columned palaces and countryside retreats stretching from the Red Sea to the Persian Gulf. But the Tangier compound appears to be his current favorite getaway. During his visit this summer, some hundred black Mercedes sedans and Range Rovers were waiting to chauffeur voes royal party around town.

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