A brand new Lamborghini and Range Rover in each driveway, pet tigers carrying diamond necklaces, $500 million personal jets, oil gushing out of the bottom with a slight pin prick, wiping your backside with $100 payments. Gold-plated…every thing.
It sounds absurd, however for a small circle of Saudis, that type of life is not fantasy—it is Tuesday. In truth, my description may not even be gaudy sufficient. Because the overwhelming majority of those extremely-rich Saudi residents are members of ONE household.
One household that controls actually trillions of {dollars} price of oil and chilly onerous money. A single household that may ship world economies hovering or tumbling with the push of a button. This is the story of the origins of the House of Saud. AKA the Saudi Royal Family. AKA the luckiest group of individuals on the planet.
First off, that is what Saudi Arabia’s capital metropolis of Riyadh seems to be like as we speak:
SAUL LOEB/AFP/Getty Images
And the picture beneath is what Riyadh appeared like at any level in historical past previous to roughly 100 years in the past:
Fox Photos/Getty Images
Early History Of The House of Saud
The first Saudi dynasty was based in 1744 by Muhammad bin Saud at a time when many of the area was loosely managed by the Ottoman Empire (trendy-day Turkey). Muhammad bin Saud gained a groundswell of recognition and energy after aligning with an influential non secular chief named Muhammad ibn Abd al-Wahhab. Together, the 2 males established a political motion referred to as Wahhabism that was based mostly on a puritanical type of Sunni Islam. They established their base within the metropolis of Riyadh, however the “Saudi” state expanded quickly to manage many of the territory that as we speak encompasses Saudi Arabia. The first Saudi state lasted till 1818, when it was destroyed by Egyptian-based Ottomans. Over the following 50 years, the Al Saud clan fought bitterly with a rival household, however they have been ultimately defeated and pushed to exile in what’s now Kuwait.
Ibn Saud Establishes A Kingdom
At the start of the nineteenth century, “Arabia” was little greater than a free patchwork of territories managed by varied tribal leaders. In 1902, Muhammad bin Saud’s nice-nice-nice-nice-grandson Abdul Aziz, who would later be often called Ibn Saud, led a gaggle of relations in recapturing management of Riyadh. Ibn Saud’s affect unfold shortly with the assistance of tribal leaders who have been sympathetic to his objective of driving out the Ottomans and unifying Arabia below Wahhabism.
Ibn Saud and his upstart forces weren’t the one foes attacking the Ottoman Empire on the time. In 1916, the Ottomans have been additionally within the midst of combating the British throughout World War I. Seeing it as a approach to weaken the Ottomans, the British gave Ibn Saud assist and encouragement to type a unified Arab state. Over the following 10 years, Ibn Saud fought off a sequence of inside and exterior forces that opposed his plans. In 1926, Ibn declared himself King of the Hejaz, an space in Western Arabia. A 12 months later, he declared himself King of Nejd, Arabia’s central area.
Finally, in 1930, Ibn Saud’s forces defeated their largest rival after a brutal two-12 months battle. With the victory, Ibn united the Hejaz and Nejd areas because the Kingdom of Saudi Arabia. He additionally executed each male member of his rival clan. On September 23, 1932, Ibn Saud formally topped himself King of Saudi Arabia.
The Poorest Country within the World
Ibn Saud lastly had a Kingdom his nice-nice-nice-nice-grandfather envisioned 150 years in the past, however there was one large drawback: After many years waging warfare to unify a largely uninhabitable swath of desert that might barely maintain a cactus, the royal household was broke. Actually, your complete Kingdom was mainly destitute. Most Saudis, together with the royal household, subsisted on extraordinarily restricted agriculture and a few minor tourism revenues from individuals making Islamic pilgrimages to Saudi landmarks like Mecca. It additionally did not assist that your complete world was reeling from the Great Depression. All of a sudden, Muslim individuals from different international locations could not afford to make the pilgrimage to Saudi Arabia’s holy websites.
Discovery of Oil
Ibn Saud and his household have been determined. They wanted a lifeline, they usually hoped that lifeline is likely to be oil. World War I had confirmed past a doubt that oil was going to be a very powerful pure useful resource on earth for the foreseeable future. At the time, because of discoveries in Texas and the Midwest, the United States was the world’s main producer of black gold. In truth, vital portions of oil had not been found anyplace within the Middle East at the moment. Modest outputs have been found in Persia (trendy-day Iran) and Bahrain, however the geological neighborhood’s normal consensus was that there was no oil in Saudi Arabia. This opinion additional discouraged overseas banks from making loans to corporations that may have been in any other case serious about conducting oil exploration inside the Kingdom.
On the opposite hand, there have been persistent rumors and native legends that oil had been seen seeping out of the bottom in some extraordinarily distant Saudi villages. So the Kingdom pressed forward. Starting in 1935, a joint partnership between Standard Oil and the Texas Oil firm referred to as CALTEX started drilling close to a desolate japanese Saudi village referred to as Dammam. After three years of fixed issues and setbacks, CALTEX made a discovery that will change the Kingdom of Saudi Arabia, the Middle East, and the world ceaselessly.
Oil was found in Dammam on March 3, 1938. It was unbelievable luck, however the royals nonetheless had no concept how way more oil they may discover. For all they knew, Dammam could be their solely discovery.
In 1949, American oil explorer Jean Paul Getty made an funding that most individuals thought was certifiably insane. Getty took $9.5 million of his personal cash (roughly $100 million as we speak) and bought a 60-12 months unique lease to seek for oil within the japanese area of Saudi Arabia. Getty then spent a further $30 million of his personal cash ($300 million as we speak) looking his declare for black gold. In 1953, the gamble paid off ENORMOUSLY. From that time ahead, his little tract of nugatory land would go on to provide 16 million barrels of oil yearly. Thanks to his Saudi fields, Getty would quickly grow to be one of many first human beings to possess a billion-dollar fortune, with out adjusting for inflation.
Then got here the Ghawar oil discipline, which started full-time manufacturing in 1951. That discipline turned out to be the most important single deposit of crude oil on the planet. During its lifetime, Ghawar is predicted to provide 75-83 billion barrels of oil. Today, six of the world’s 30 largest oil fields are situated in Saudi Arabia.
Ibn Saud is pictured beneath on February 14, 1945, aboard the USS Quincy, off the coast of Egypt. He is chatting with American Marine Corps translator Colonel William A Eddy (kneeling left) as US President Franklin D Roosevelt listens:
Hulton Archive/Getty Images
Family Business
Over the following 50 years, Saudi Arabia shortly grew into one of many largest, wealthiest, and strongest international locations on the earth. Ibn Saud dominated the Kingdom till his demise in November 1953. He was survived by 36 sons (he had 45 sons, however some died earlier than reaching maturity) and an unknown variety of daughters. He had 22 wives.
After Ibn’s demise, the crown handed to his son Saud, nevertheless it was one other son, Faisal, who would redefine the dominion’s position on the worldwide stage. King Faisal formally took energy in 1964 after a palace energy battle and ushered in an period of speedy modernization—constructing colleges, infrastructure, and a centralized forms whereas nonetheless sustaining strict non secular foundations. Most critically, Faisal nationalized Saudi oil, taking full management of Aramco within the Seventies. That transfer turned the royal household from wealthy landowners into geopolitical oil barons, able to transferring markets and swaying superpowers.
After Faisal’s assassination in 1975, the crown handed successively to 4 extra sons of Ibn Saud:
- King Khalid (1975 – 1982)
- King Fahd (1982 – 2005)
- King Abdullah (2005 – 2015)
- King Salman (2015 – current)
But whereas Salman wears the crown, true energy shortly shifted to his son, Mohammed bin Salman (MBS)—the daring, formidable Crown Prince decided to remodel the dominion for the twenty first century. If MBS ultimately turns into King, he would be the first King of Saudi Arabia who will not be considered one of Ibn Saud’s sons.
Pictured beneath are 5 of Ibn Saud’s 36 sons boarding a aircraft in August 1945. At the far proper, standing on the high of the steps, is Amir Faisal, who would grow to be King Faisal in 1964. Standing just under him is Amir Mohammed. Next is Amir Fahd, who would go on to grow to be King Fahd in 1982. Beside him is Amir Abdullah Al Faisal. At the far left is the youngest of the group, Amir Nawaf.
(Photo by William Vanderson/Fox Photos/Getty Images)
Family Wealth
Today, the prolonged Saudi royal household is believed to manage round $1.4 trillion in collective wealth, with the overwhelming majority concentrated amongst simply 2,000 of its strongest members. Before his demise in 2015, King Abdullah was believed to have amassed a private fortune of $18 billion, making him one of many richest heads of state in trendy historical past.
We at the moment estimate Crown Prince Mohammed bin Salman (MBS) has a internet price of $5 billion, whereas his father, King Salman, is estimated to be price $20 billion.
When evaluating the wealth of the House of Saud, it is essential to acknowledge that “net worth” might matter lower than the sheer scale of their ongoing revenue. The motive MBS was capable of purchase a single painting for $450 million (that was supposedly a Da Vinci, however might have really been a faux) is not nearly property on paper—it is about entry to nearly limitless liquidity via annual royalties and state-generated stipends. In some ways, their life-style is funded much less like a standard fortune and extra like an ever-flowing oil effectively.
Crown Prince Mohammed bin Salman (FETHI BELAID/AFP/Getty Images)
Oil Royalties and Stipends
Ok, so to illustrate you are one of many fortunate few genetic lottery winners born into the Al Saud household. Does that mechanically imply you are a millionaire… or billionaire???!!!
Yes… and no…
All members of the Al Saud household are eligible to obtain month-to-month royalties and stipends drawn from the Kingdom’s oil revenues. The whole course of is overseen by the Finance Ministry’s Office of Decisions and Rules—basically a royal payroll division for the wealthiest household enterprise on Earth.
The quantity you obtain depends upon your lineage and proximity to the throne. In 2011, WikiLeaks revealed a leaked U.S. embassy cable from 1996, which detailed the precise quantities varied members of the House of Saud have been incomes. In 1996, the vary was as little as $800 a month for a distant member of the family… to $270,000 monthly for the higher echelon. And that was 30 years in the past!
A distant cousin from a lesser-identified department would possibly earn simply $800 a month, whereas nearer relations rake in a whole lot of hundreds and even tens of millions every month. And like every good company gig, there is a 12 months-finish bonus—solely on this case, the pool ranges from $20 to $40 billion, cut up amongst hundreds of royals.
And by the way in which, these stipend figures got here from a categorized 1996 U.S. embassy cable, later launched by WikiLeaks. So these numbers are literally 30 years previous!
In 1996, Saudi Arabia’s oil revenues have been roughly $42 billion. By 2024, the panorama had shifted considerably. Saudi Aramco, the state-owned oil big, reported complete revenues of $436.6 billion for the 12 months, reflecting a slight lower from the earlier 12 months’s $440.88 billion.
So would it not be secure to imagine, the House of Saud’s month-to-month royalty revenue has not less than elevated by 10X? That would suggest a minimal month-to-month stipend of $8,000 for distant cousins to maybe $2.7 million monthly for the elite.
It could be as if, by sheer birthright, you have been mechanically granted worker badge #2,001 at Google in 2004—besides as an alternative of inventory choices, your compensation is oil-backed and tax-free… for all times.
This revenue fuels the type of extravagance most individuals solely see in rap movies or Bond villain lairs: $300 million yachts, $500 million personal jets, personal islands, fleets of supercars, stable-gold tissue dispensers, and Bengal tigers with jewel-encrusted collars. All paid for by one magical ingredient: black gold.
Meanwhile, billions extra are allotted to nation-scale improvement tasks—mosques, stadiums, futuristic skyscrapers, and sprawling palace compounds. Historically, a major chunk of those income was managed by the Saudi Arabian Monetary Authority (SAMA), the dominion’s authentic sovereign wealth fund, which at one level managed over $750 billion in property.
But as we speak, the true financial battering ram is the Public Investment Fund (PIF)—personally managed by Crown Prince Mohammed bin Salman. Under his management, the PIF has grown to over $900 billion and is bankrolling every thing from a $500 billion metropolis-in-the-desert referred to as NEOM to investments in Uber, Nintendo, SoftBank, Hollywood studios, Premier League soccer golf equipment, and even LIV Golf.
In quick: being born into the House of Saud does not mechanically make you a billionaire… But it does imply you are plugged into essentially the most profitable household enterprise in world historical past.
Conclusion
So what occurs when one household positive aspects management of the world’s most respected pure useful resource, builds a rustic from scratch, and turns their final identify right into a trillion-greenback model? You get the House of Saud—a royal dynasty that lives on the intersection of oil, energy, and unfathomable privilege. It’s a narrative of desert conquests, geopolitical chess, gold-plated jets, and sufficient pet tigers to populate their very own luxurious safari. And whereas the remainder of us hustle for paychecks or diversify our 401(ok)s, the Saudi royals are proof that generally, the perfect funding technique is solely being born into the proper bloodline.
So there you’ve it. That’s just about every thing you may presumably wish to know in regards to the origins, wealth, energy, and succession of the House of Saud. AKA the Saudi Royal Family. AKA the luckiest group of unintentional trillionaires on the planet. Now, in case you’ll excuse me, I’m off to Riyadh to make a Saudi Princess fall in love with me.
