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Mohammed Bin Salman / $2 trillion empire by age 32


The crown prince of Saudi Arabia :- Mohammed Bin Salman

 When you think about the richest people in the world, people like Jeff Bezos, bill Gates or Warren Buffet are the first to cross your mind. 


Mohammed Bin Salman

They are, of course, unbelievable rich and powerful, but if you compare any of them to the crown prince of Saudi Arabia, Mohammed Bin Salman, he will put them all to shame.This young prince controls an empire worth over 2 trillion dollars.To comprehend his level of wealth, take a look at this. 


He primarily lives in Saudi Arabia, but since he flies to France from time to time to enjoy a vacation, he purchased a mansion for 300 million dollars. In the world of the super-wealthy, you are not respected unless you have a floating mansion, so he got himself a 134 meters long yacht(Serena) for 500 million dollars and to impress his rich friends, he purchased leanardo deVinci's painting for 350 million dollars. Even Bezos would envy him.


Officially the real power belongs to his father, King Salman, who became King in 2015 when his brother passed away. The King is 84 years old, he is sick, old and he knows that he isn't going to live long. That's why instead of ruling the country, he is making sure that consolidates the power in the hands of his son, Mohammed bin Salman.



 To understand how he or MBS, as he is known in the west, ended up as the most powerful person in the Middle East, we have to understand how the Saudi royal family works. 



Ibn Saud, was one of the prominent leaders in the Arabian Peninsula back when it was ruled by the ottoman empire but through multiple alliances in the area, he conquered most of the area in the region and established the kingdom of Saudi Arabia in 1932. 


Over his life, he had multiple wives and its reported that he left 45 children who became king one by one after their father passed away.  When you have so many children, it's difficult to consolidate power; that's why royals throughout history always had one kid or two at bestas a backup plan. 


So although Saudi Arabia is a monarch, it has never been where the entire power belonged to a single person because the royal family is so big that it has 15000 members and the power was shared among them and the King was elected by the family. 


For Example, King Saud bin Abdulaziz was replaced by his younger brother Faisal when he seemedincompetent by the royal family. 



However, the current King Salman is the last son of Ibn Saud, which means the next Kingis going to be one of the nephews of Ibn Saud, specifically Prince Nayef. But King Salmandecided to change that and made his 32-year-old son the crown prince and removed bin Nayef From all his positions.   


That created a lot of tension in the royal family since most members disagreed that the 32-year-old is qualified enough to rule the country. If he ends up the King, he will rule for longer than any previous king since he is just 32 years old, if he ends up living for 80 years for example, he will rule the country for the next 50 years. 




 Before becoming the crown prince, he  Saudi king university with a bachelor degree in law. After graduating from college,Mohammed bin Salman spent several years in the private sector. He worked as a consultant for different government-controlled companies and the Saudi Cabinet.On 15th of December 2009, at the age of 24, Mohammed bin Salman entered politics as a special advisor to his father when the latter was the governor of Riyadh Province. 


At this time Mohammed bin Salman began to rise from one position to another at an unbelievable speed, such as to secretary-general of the Riyadh Competitive Council, then became the special advisor to the chairman of the board for the King Abdulaziz Foundation for Researchand Archives, and a member of the board of trustees for Albir Society in the Riyadh region.When your father is the crown prince, I guess, you don't need talent or hard work to get a raise.


 

 The young prince first started out by cracking his main rivals and imprisoned them all in Ritz Carlton hotel. Well, that's how a prison would look like when you are a prince. He forced them to give up most of their wealth in return for their freedom and ended up seizing over 100 billion dollars. That's a lot of money if you ask me. 



His main source of wealth is Armaco that has a valuation of over 2 trillion dollars. It's a multinational petroleum and natural gas company. It is one of the largest companies in the world by revenue. Saudi Aramco has both the world's second-largest proven crude oil reserves, at more than 270 billion barrels and the largest daily oil production of all oil-producing companies. In 2018, Aramco's revenue exceeded 355 billion dollars, in comparison, Apple, which is also a 2 trillion dollar company, made only 260billion dollars.  



The company is so big that it controls the entire market, at least it leads the market.On 4th of December 2019, Saudi Aramco went public to raise money to reduce the government's cost of running the company. It raised $25.6 billion in its IPO, making it the world's largest IPO to date, succeeding that of the Alibaba Group in 2014.


For decades the main goal of the company was to pay the bills of the royal family, butthe young prince has taken full control of the company, and now he is in charge of the 2 trillion dollar oil empire, and since the company is listed on Saudi exchange, it's not accountable to anyone, the prince can spend all these hundreds of billions of dollars every year on whatever he desires.  He is known for his extravagant lifestyles,he spends hundreds of millions of dollars on mansions, planes, helicopters, yachts.



 But the prince wants to be known for something else like transforming his country from an oil-dependent country into a technologically advanced society, that's why he launched his vision 2030. Vision 2030 plans to reform Saudi's economy towards a more diversified and privatized structure. 


It details goals and measures in various fields, from developing non-oil revenue streams to privatization of the economy toe-government and sustainable development. He also plans to build a brand new city calledNeom. It is a $500 billion economic zone to cover an area of 26,000 square kilometers in Saudi Arabia's Red Sea coast, extending into Jordan and Egypt. 


Neomed aims to attract investment in sectors including renewable energy, biotechnology, robotics and advanced manufacturing. The city will also be governed by a different set of laws that are more acceptable internationally, it's like an entirely new country. The goal is to attract tourists and investors from all over the world and open the country. 


Prince Mohammed bin Salman's biggest bet was his plan to restore the Saudi kingdom's dominance in global oil markets by driving the new competition into bankruptcy, by keeping the oil price low enough for a long enough period (that's what Rockefeller did). Saudi Arabia persuadedOPEC to do the same. 


A few small players went bankrupt, but American frackers only shutdown their less-profitable operations temporarily, and waited for oil prices to go up again.But that plan was a disastrous, the prince seems to have forgot that we are in the 21stcentury, and Rockefeller's strategies no longer work, so the company had to acknowledge adefeat and raised prices. 


 
The young prince also initiated a few mega projects such as the much-awaited $6.7bn high-speedrailway line connecting Mecca and Medina, two holiest Islam cities that can transportaround 60 million passengers annually. He also took seriously the Public Investment Fundof Saudi Arabia, its assets were approaching 400 billion dollars and the prince was confident that he can raise it to 600 billion dollars by 2020, and guess what?!


 That never happened!Its assets are still under 400 billion dollars. The young prince seems to be quite good at spending money and not making. 



Officially, he is not a billionaire, but he has a 2 trillion dollar company completely under his control and an entire country. He is probably the wealthiest person on the face of the earth.


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