Another popular money-making scheme saw some "greedy princes" expropriate land from commoners. "Generally, the intent is to resell quickly at huge markup to the government for an upcoming project." By the mid-1990s, a government program to grant land to commoners had dwindled. "Against this backdrop, royal land scams increasingly have become a point of public contention."

The cable cites a banker who claimed to have a copy of "written instructions" from one powerful royal that ordered local authorities in the Mecca area to transfer to his name a "Waqf" -- religious endowment -- of a small parcel of land that had been in the hands of one family for centuries. "The banker noted that it was the brazenness of the letter ... that was particularly egregious."

Another senior royal was famous for "throwing fences up around vast stretches of government land."

The confiscation of land extends to businesses as well, the cable notes. A prominent and wealthy Saudi businessman told the embassy that one reason rich Saudis keep so much money outside the country was to lessen the risk of 'royal expropriation.'"

Finally, royals kept the money flowing by sponsoring the residence permits of foreign workers and then requiring them to pay a monthly "fee" of between $30 and $150. "It is common for a prince to sponsor a hundred or more foreigners," the 1996 cable says.