..in which Forbes angers a Saudi Prince

Prince Alwaleed bin Talal Al Saud is annoyed.

Forbes has long been the ultimate list. Featuring on the magazine’s list of the world’s wealthiest is an aspiration of many an entrepreneur, while, for the rest of us, it’s ranking of billionaires shows us just who actually is in charge.

But today the magazine has just infuriated Prince Alwaleed bin Talal Al Saud, the man who it believes the wealthiest in the Middle East. In a brutal statement of misgiving, the CFO of Alwaleed’s company, Kingdom Holding, said, “Forbes has no intention of improving the accuracy of their valuation of our holdings”. While in another statement he said, “I never knew that Forbes was a magazine of sensational dirt-digging and rumor-filled stories.” 

So how has Forbes provoked such a stir? How is one of the most powerful men in the Middle East moved by some shallow rich list? Here’s why: The article headlining Forbes’ March 2013 magazine not only paints the picture of a man obsessed by money, but gives an interesting insight into the region.

Alwaleed, Forbes argues, annually exaggerates his wealth by billions just so he can appear on their rich list; such is his obsession with the competition. He uses his public company – Kingdom Holding, which uses the tagline, “The World’s Foremost Value Investor” – to inflate his value. Only this year, Forbes gave him a net worth far less than Alwaleed would have liked. Here’s what they say:

“Of the 1,426 billionaires on our list, not one–not even the vainglorious Donald Trump–goes to greater measure to try to affect his or her ranking.”

This distaining Forbes article may show up Alwaleed as a man whose pride is his wealth. But it also raises questions over his fellow Saudi’s obsession with money.

The article goes on to list Alwaleed’s 420 room palace (apparently filled with portraits of himself), 747 private aircraft with a throne, private “farm and resort” with artificial lakes and a zoo. Yet all of these (bar perhaps the zoo) are not uncommon displays of wealth in the Kingdom, which, also according to Forbes, has the second most billionaires in the Middle East after Israel.

Ironically, this accumulation and ostentation goes against the wishes of Saudi Arabia’s founder, and Alwaleed’s grandfather, Ibn Saud. According to his English adviser, St John Philby, Ibn Saud was frequently frustrated by many of the Princes’ displays of wealth.

As for Alawaleed’s true wealth: Forbes puts his worth (apparently wrongly) at $20 million; Bloomberg, who he endorses, says he is worth $28; Arabian Business takes the middle ground at $25.9 and WealthInsight, a global wealth consultancy says that Alwaleed owns $22.6.

Look at all my money. Photograph: Getty Images

Oliver Williams is an analyst at WealthInsight and writes for VRL Financial News

Paul McMillan
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"We're an easy target": how a Tory manifesto pledge will tear families apart

Under current rules, bringing your foreign spouse to the UK is a luxury reserved for those earning £18,600 a year or more. The Tories want to make it even more exclusive. 

Carolyn Matthew met her partner, George, in South Africa sixteen years ago. She settled down with him, had kids, and lived like a normal family until last year, when they made the fateful decision to move to her hometown in Scotland. Matthew, 55, had elderly parents, and after 30 years away from home she wanted to be close to them. 

But Carolyn nor George - despite consulting a South African immigration lawyer – did not anticipate one huge stumbling block. That is the rule, introduced in 2012, that a British citizen must earn £18,600 a year before a foreign spouse may join them in the UK. 

“It is very dispiriting,” Carolyn said to me on the telephone from Bo’ness, a small town on the Firth of Forth, near Falkirk. “In two weeks, George has got to go back to South Africa.” Carolyn, who worked in corporate complaints, has struggled to find the same kind of work in her hometown. Jobs at the biggest local employer tend to be minimum wage. George, on the other hand, is an engineer – yet cannot work because of his holiday visa. 

To its critics, the minimum income threshold seems nonsensical. It splits up families – including children from parents – and discriminates against those likely to earn lower wages, such as women, ethnic minorities and anyone living outside London and the South East. The Migration Observatory has calculated that roughly half Britain’s working population would not meet the requirement. 

Yet the Conservative party not only wishes to maintain the policy, but hike the threshold. The manifesto stated:  “We will increase the earnings thresholds for people wishing to sponsor migrants for family visas.” 

Initially, the threshold was justified as a means of preventing foreign spouses from relying on the state. But tellingly, the Tory manifesto pledge comes under the heading of “Controlling Immigration”. 

Carolyn points out that because George cannot work while he is visiting her, she must support the two of them for months at a time without turning to state aid. “I don’t claim benefits,” she told me. “That is the last thing I want to do.” If both of them could work “life would be easy”. She believes that if the minimum income threshold is raised any further "it is going to make it a nightmare for everyone".

Stuart McDonald, the SNP MP for Cumbernauld, Kilsyth and Kirkintilloch East, co-sponsored a Westminster Hall debate on the subject earlier this year. While the Tory manifesto pledge is vague, McDonald warns that one option is the highest income threshold suggested in 2012 - £25,700, or more than the median yearly wage in the East Midlands. 

He described the current scheme as “just about the most draconian family visa rules in the world”, and believes a hike could affect more than half of British citizens. 

"Theresa May is forcing people to choose between their families and their homes in the UK - a choice which most people will think utterly unfair and unacceptable,” he said.  

For those a pay rise away from the current threshold, a hike will be demoralising. For Paul McMillan, 25, it is a sign that it’s time to emigrate.

McMillan, a graduate, met his American girlfriend Megan while travelling in 2012 (the couple are pictured above). He could find a job that will allow him to meet the minimum income threshold – if he were not now studying for a medical degree.  Like Matthew, McMillan’s partner has no intention of claiming benefits – in fact, he expects her visa would specifically ban her from doing so. 

Fed up with the hostile attitude to immigrants, and confident of his options elsewhere, McMillan is already planning a career abroad. “I am going to take off in four years,” he told me. 

As for why the Tories want to raise the minimum income threshold, he thinks it’s obvious – to force down immigration numbers. “None of this is about the amount of money we need to earn,” he said. “We’re an easy target for the government.”

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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