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:
“Franklin said once in one of his inspired flights of malignity—
Early to bed and early to rise
Make a man healthy and wealth and wise.
As if it were any object to a boy to be healthy and wealthy and wise on such terms.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“Wars and revolutions and battles are due simply and solely to the body and its desires. All wars are undertaken for the acquisition of wealth; and the reason why we have to acquire wealth is the body, because we are slaves in its service.”
—Socrates (469–399 B.C.)
“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)