Page 38 - Aamir Rehman Gulf Capital and Islamic Finance The Rise of the New Global Players

1 CHAPTER

Floating on Wealth:

The Origins and Sources

of Gulf Prosperity

We come from the desert, and we have been living on camel milk and
dates . . . and we can easily go back and live in the desert again.
—King Faisal of Saudi Arabia (ruled 1964–1975) 1

Decades ago, when wealth in the Gulf was far scarcer, one prominent Gulf fam-
ily subtly began sending a regular stipend to another leading family to help the
latter meet its expenses. The recurring payment became standard practice, and
continued for decades—even after successive oil booms had multiplied the
wealth of each family manyfold. When a financial review by the benefactor fam-
ily found that this small payment was still being paid regularly, the family
stopped the practice for fear that the small gift—negligible compared to both
families’current incomes—could be a source of embarrassment for the recipient.
Shortly thereafter, the head of the recipient family placed a call to his
former benefactor. While of course he was in no need of the stipend, he noted
that the modest payment was something that he had deeply appreciated. He
went on to explain the reason why: “because it used to remind me of the time
when I was in need.” 2

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