Political power
The Head of the House of Saud is the King of Saudi Arabia who serves as Head of State and monarch of the Kingdom of Saudi Arabia. The King holds almost absolute political power. The King appoints ministers to his cabinet who supervise their respective ministries in his name. The key ministries of Defence, the Interior, and Foreign Affairs are reserved for the Al Saud, as are most of the thirteen regional governorships. Most portfolios, however, such as Finance, Labour, Information, Planning, Petroleum Affairs and Industry, have traditionally been given to commoners, often with junior Al Saud members serving as their deputies. House of Saud family members also hold many of the Kingdom's critical military and governmental departmental posts. Ultimate power in the Kingdom has always rested upon the Al Saud, though support from the merchant community and the population-at-large are keys to maintaining the status quo.
Unlike Western royal families, the Saudi Monarchy does not have a clearly defined order of succession. Historically, upon becoming King, the monarch designates an heir apparent to the throne who serves as Crown Prince of the Kingdom. Upon the King's death the Crown Prince becomes King, and during the King's incapacitation the Crown Prince assumes power as regent. Though other members of the Al Saud hold political positions in the Saudi government, technically it is only the King and Crown Prince who legally constitute the political institutions.
Due to its authoritarian and theocratic rule, the House of Saud has attracted much criticism. Its opponents generally refer to the Saudi monarchy as totalitarians or dictators. There have been numerous incidents of demonstrations and other forms of resistance against the House of Saud.
Wealth
In 1915, Ibn Saud signed a "friendship and cooperation" pact with Britain to keep his militia up. Not only did the British pay a monthly allowance for his cooperation, in 1935 he was knighted. Oil was discovered in Saudi Arabia in 1938 by American geologists working for Standard Oil. Substantial authority over Saudi oil fields was granted to American oil companies in 1944, to the dismay of the British who had invested in Ibn Saud's rise to power in hopes of access to reserves.
His new found oil wealth brought great power and influence that Ibn Saud used to advantage. He forced nomadic tribes to settle and abandon "petty wars" and vendettas. He enforced Muhammad Ibn Abd al-Wahhab teachings, making an end to traditional pilgrimages, so several apologies had to be issued to Muslim governments for beatings of pilgrims visiting the holy cities. With rivals gone, Ibn Saud's ideology was in full force, ending 1400 years of accepted religious practices.
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 $1.9 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, national income has outpaced the developmental needs and social obligations of the Saudi government and the effects of royal skimming were diminished. According to rumour, King Abdullah intends to reduce the Al Saud share, an act which may sow discontent within the royal family, but would be popular with the Kingdom's citizenry.