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Mr Gates and the investor Warren Buffett have signed up 137 billionaires to a “giving pledge” that they will donate more than half their wealth in their lifetime.
Prince Alwaleed, a member of the Saudi royal family and nephew of the late King Abdullah, said his wealth would be put towards tackling the effects of war and natural disaster, as well as difficult economic and social conditions faced by many.
Calling the bequest his “living will”, he said: “It is a commitment without boundaries; a commitment to all humankind.” The charitable focus would be on his home kingdom of Saudi Arabia, he added.
In a statement on Wednesday, Mr Gates said Prince Alwaleed’s “generous commitment promises to significantly extend the great work that his foundation is already doing”.
The question of how much the prince is actually worth has stirred heated debate over the years. Last month, he settled a libel dispute he had brought against Forbes magazine for underestimating the size of his fortune, which he estimates at $32bn. Forbes gave a figure of $28.4bn.
The Prince’s declaration comes against the backdrop of a debate between the world’s wealthiest individuals over how much of their fortunes they should give away — and how quickly.
Younger philanthropists have criticised the Gates-Buffett giving pledge for endorsing family foundations that would continue to exist permanently after a donor’s death.
Last week, Sean Parker, the founder of Napster and an early Facebook investor, launched his own $600m foundation, criticising existing institutions for “warehousing . . . funds inside permanent tax-exempt entities”, and promising to spend his own endowment in his lifetime.
As chief executive of Kingdom Holding Company, Prince Alwaleed has built a fortune through investments in a range of companies including Twitter and News Corp.
He said on Wednesday that he would lead a board of trustees to oversee how his wealth would be allocated to institutionalise his philanthropic work after his death.
“Right now the bulk of the income, not the assets, will go to good causes,” he said. No shares would be sold at present and there would be no immediate impact on KHC’s share price.
However, over time he would donate all his assets inside and outside Saudi Arabia, including his large shareholding in KHC. The holding company is listed on the Saudi stock exchange, which recently opened up to institutional foreign investors for the first time.
The prince has been involved in philanthropic work since the 1980s and recently restructured his charitable institutions into Alwaleed Philanthropies. He has donated $3.5bn to the foundation to date.
Over the years, his philanthropy has spanned investments in community education, healthcare, emergency relief and basic infrastructure in 92 countries, as well as in female and youth empowerment.
“Since most of my wealth was achieved from this blessed country, I have made giving back to Saudi Arabia my number one priority — after which our philanthropic efforts will extend to countries around the world,” said Prince Alwaleed.
His donations have sometimes sparked controversy. In 2001, Rudy Giuliani, then mayor of New York, said the city would not accept a $10m donation from the prince for disaster relief, after the donor suggested that US policies in the Middle East had contributed to the 9/11 terrorist attacks.
The 60-year-old Prince Alwaleed insisted he felt “great” and said health reasons were not behind his decision to give away his fortune. His children supported his decision, he added.
Prince Khaled, his son, would become chairman of the foundation after his death, while his daughter, Princess Reem, would be vice-chairwoman.
ft.com
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