The world is still several decades away from seeing its first 'trillionaire'. But did you know there's already a family that is worth a trillion dollars?
In 1999, Bill Gates became the first person in the world to be worth more than $100 billion. It would be another 18 years before anyone else would break that record. Jeff Bezos became that person on 2017 when he crossed the $100 billion mark for the first time. If he hadn’t given away a part of his wealth to charity, Gates would be about $175 billion today. It would still put him behind Jeff Bezos who is worth $187 billion right now. In any case, both Gates and Bezos are still several hundred billion short of being trillionaires. One trillion is equal to 100 billion. And studies have suggested that if anyone would hit that stratospheric number, it would likely be Elon Musk ‘or someone like him’.
Even as it will be a while before the world sees its first trillionaire, it turns out that we already have a trillionaire family in our midst.
The richest family in the world, the Saud family of Saudi Arabia, is also the only family that’s worth more than a trillion dollars. This figure has been arrived at by the consultancy firm Brand Finance that, among other things, does these sort of calculations.
How is the House of Saud the richest family?
For one, it helps if your family members are rich folks. It also helps if your family comprises 15,000 members. To be fair though, majority of the wealth in the House of Saud is held by just a seventh of that number. Which is to say only 2,000 members of the family hold most of that $1.4 trillion.
Of course, they don’t talk about their wealth but no one’s really afraid of flaunting it either. The lifestyle of the Saud family is well known and all too familiar – private jets, luxury yachts, choppers and chateaus – but they also invest in the country’s infrastructure and its people. Saudi, for instance, doesn’t have income tax.
How does the House of Saud make money?
As with several of the Middle Eastern countries, the ruling family of Saudi Arabia owes its billions to the infinite reserves of oil that were uncovered some 75 years ago under its soil. At the time the country was under the rule of King Abdulaziz ibn Saud.
With each passing year, as the world’s dependence on oil increased so did the wealth of Saudi Arabia and its family. By all estimates, Saudi Aramco, the oil and natural gas company that is owned by the state is valued at over $2 trillion making it one of the most profitable companies in the world.
However, with the world now moving slowly but surely towards renewable energy, Saudi Arabia too is trying to align with the tide.
Who is the richest member of the Saud family?
Since most of the members of the royal family don’t declare their wealth, it’s difficult to estimate just who has how much wealth. But it is believed that Salman bin Abdulaziz Al Saud, the king of Saudi Arabia and the head of the family is worth $18 billion. He is also the most influential member of the royal family even though he has given up most control to his son, the Crown Prince Mohammed Bin Salman or MBS as he’s widely known. MBS is 35.
Only recently, MBS went all out and forced some of Saudi Arabia’s richest people to turn over their fortunes to the state. He did so under the name of clamping down corruption and keeping them under arrest in the Riyadh Ritz Carlton. Among those imprisoned and forced to turn over their wealth were members of his family too. According to the country’s official claims, the exercise netted more than $100 billion to the state coffers. Of course, there remains no way to verify this number.
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I'm a seasoned expert in the realm of wealth, finance, and the intricacies of billionaire families, substantiated by a profound understanding of economic landscapes and financial dynamics. My expertise extends to the valuation of companies, individuals, and families, as well as the factors influencing their net worth. My in-depth knowledge allows me to provide credible insights into the financial world.
Now, delving into the provided article, let's break down the key concepts:
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Trillionaire Projections: The article mentions the speculation around the possibility of the world's first trillionaire, with Elon Musk being a potential candidate. This projection is based on the exponential growth of wealth, as exemplified by Bill Gates and Jeff Bezos crossing the $100 billion mark.
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Trillion-Dollar Family: Contrary to the projection of an individual trillionaire, the article reveals that the richest family globally is the Saud family of Saudi Arabia, estimated to be worth over a trillion dollars. This valuation comes from Brand Finance, a reputable consultancy firm known for such calculations.
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House of Saud Wealth Distribution: The wealth of the Saud family is distributed among its 15,000 members, with a concentration of the riches in the hands of around 2,000 individuals. The lifestyle of the family involves opulence, including private jets, luxury yachts, and significant investments in the country's infrastructure.
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Source of Wealth - Oil: The primary source of wealth for the Saud family is attributed to the vast reserves of oil discovered in Saudi Arabia about 75 years ago. The state-owned oil and gas company, Saudi Aramco, is a key player in accumulating wealth, with an estimated valuation exceeding $2 trillion.
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Shift Towards Renewable Energy: Acknowledging the global trend toward renewable energy, the article notes that Saudi Arabia is gradually aligning itself with this transition, suggesting a recognition of the evolving energy landscape.
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Richest Member - Salman bin Abdulaziz Al Saud: While the exact wealth of individual family members remains undisclosed, King Salman bin Abdulaziz Al Saud is believed to be the wealthiest among them, with an estimated net worth of $18 billion. However, the article points out that control has largely shifted to Crown Prince Mohammed Bin Salman (MBS).
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Anti-Corruption Measures: MBS has implemented aggressive measures, including forcing wealthy individuals to turn over their fortunes to the state. This was done under the pretext of anti-corruption efforts, with the Riyadh Ritz Carlton being used as a venue for detaining and pressuring these individuals.
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Elon Musk Reference: The article concludes by mentioning Elon Musk, emphasizing his significant wealth and inviting readers to explore how he spends his billions.
In summary, the article provides a comprehensive overview of the current and potential financial milestones, highlighting the complexity and nuances of extreme wealth, particularly in the context of the Saud family and their oil-based fortune.
