Billionaire Saudi cries foul over Forbes’ rich list

FORBES’ annual rankings of billionaires is sparking a brawl, with accusations of bias and financial shenanigans flying between the magazine publisher and Saudi Prince Alwaleed Bin Talal.

money.msn.com

It’s an unusual place to find Forbes’ billionaire list, which typically offers the more sedate amusements of providing the have-nots with a glimpse of the huge fortunes behind the likes of Microsoft’s Bill Gates and Berkshire Hathaway’s Warren Buffett.

But this year’s annual billionaires list has turned into something of a slugfest. That’s because Prince Alwaleed on Monday said he had “severed ties” with the Forbes list, accusing it of using a “flawed” valuation method that’s biased against Middle Eastern investors.

Forbes, owned by wealthy businessman Steve Forbes, shot back on Tuesday with a scathing article that claims the value Prince Alwaleed places on his holdings seems like “an alternate reality”.

In the middle of the dust-up might be the actual winner: the Bloomberg Billionaires index, created last year to compete with Forbes’ list.

That’s partly because Alwaleed is throwing his support to the rival rich list, helping it gain attention and perhaps move out from the shadow of Forbes’ better-known billionaires ranking.

But a bigger issue might be how the fight exposes the posturing that has apparently fueled the Forbes list in past years.

As the magazine itself notes, Alwaleed first came to its attention in 1988, a year after it first published the rich list.

The prince engaged in “lobbying, cajoling and threatening” to ensure his status on the list, with the writer even noting that Alwaleed called “in tears” after the 2006 list placed his wealth at $7 billion below what the prince said it was.

Bloomberg’s rich list is backed by another billionaire: Michael Bloomberg, who founded financial data and news service Bloomberg LP and whose fortune Forbes pegs at $27 billion.

The Bloomberg list allows users to sort the wealthy by citizenship, gender, age and sources of wealth, and it uses the company’s data systems to rejigger the billionaire standings each day.

By Bloomberg’s measure, Prince Alwaleed was the world’s 16th-richest person on Tuesday, with $28 billion of net worth.

Forbes, however, ranks the prince at a lowly No 26, pegging his wealth at $20 billion.

Alwaleed declined to talk with Forbes for its article, which offers a dim view of his personality and investing prowess.

“Alwaleed has not proven to be a consistent investor. Over the past 20 years he has backed some serious dogs, such as Eastman Kodak and TWA,” the piece notes.

It also claims the prince is using his Kingdom Holding shares, which are traded on the Saudi Stock Exchange, to push up his net worth.
Prior to the annual release of the Forbes rich list, shares in Kingdom jumped sharply, the story says.

Several “former executives close to Alwaleed began telling Forbes a consistent story: The prince was using his public vehicle to inflate his net worth,” the piece says.

Alwaleed said in his press release that “Forbes has no intention of improving the accuracy of their valuation of our holdings and we have made the decision to move on.”

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11 Responses to Billionaire Saudi cries foul over Forbes’ rich list

  1. Mbizo March 7, 2013 at 9:00 am #

    Ko chiyangwa aripapi?

    • Mukomana wekuseri March 7, 2013 at 10:33 am #

      Good one there Mbizo!

  2. richness.... March 7, 2013 at 10:47 am #

    ok

  3. Chabwino March 7, 2013 at 1:36 pm #

    Alwaleed Bin Talal you are a big fool. You waste your time trying to be recognised amongst the richest guys instead of doing something with your wealth to solve the world’s problems. Just look at Bill (William) Gates the guy is now full time into philanthropy trying to help the less priviledged such as Chabwino and company. You must be ashamed of yourself Alwaleed!

    • munjanja March 7, 2013 at 10:45 pm #

      Chabwino, you must be ashamed of yourself more. The world doesn’t owe the billionaire a living. It’s your duty to drag yourself and the fellow poor out of poverty. He is not neglecting his kids. Work hard. Zvemahara wazvinyanyira. Ko munovengerei BILLIONAIRE?

    • munya nhema March 8, 2013 at 11:24 am #

      hey Chabwino…i will tell u somethng….wek also…he did his mistakes but remember imari yake…why not solve the solution by praying hard and going for the kill yourself…helping others…

      amen and amenm

  4. godwill chikoshana March 7, 2013 at 2:31 pm #

    it is funny how some people want attention….in a world were some go to sleep on empty stomachs………..and have no shelter………..

  5. Adeyemi Yusuf March 7, 2013 at 7:16 pm #

    I dn’t think Alwajeed shud be wasting is time abt dis,why not him focus on how to move forward,instead of making a hell of a NOISE

  6. Kaka March 8, 2013 at 7:54 am #

    kana basa naye nemari yake nekuti hapana patinofa takaidya kana panonzi auya kuzoinvesta kuzim vekuno vakawanawo mabasa.

  7. billy March 8, 2013 at 6:40 pm #

    wastin tym cryn fo a higher positn n d richest list?amwe anhu

  8. max March 11, 2013 at 7:07 am #

    Ana Chiyangwa venoise varipi

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