What The Saudi-Swiss Connection Means For You Dear Reader, Geneva has long been a favorite of Arab visitors, and now it's literally being bought up by the Saudi Arabian royal family. Speak to any real estate agent dealing with upmarket properties and you'll learn that large Swiss estates are being purchased by agents for the House of Fahd. Think princes buying properties from the back seats of dark limousines without even leaving their car--Geneva real estate agents and property owners who want to sell are having a field day. The aging King Fahd and his entourage of some 2,000 princes seem to be preparing for the growing risk of a violent coup at home, and they want to be sure that life in exile will be equally sweet as life at home. That's why another business sector in Geneva, private banking, is similarly booming. The legendary Rothschild family just hosted the annual meeting of its Geneva-based private bank, Banque Privée Edmond de Rothschild. This being one of the rare chances to mingle with Europe's biggest banking dynasty, I made my way to Chateau Prègny-Chambesy, the former family seat of the Swiss Rothschilds, where they still seem to have enough influence on the estate to have public roads blocked for the annual event. Maybe you remember the headlines about the Saudis repatriating their funds from U.S. banks? About a year ago, several newspapers reported that the Saudis were about to pull $300 billion to $400 billion out of their U.S. bank accounts, fearing that Uncle Sam might freeze their assets should political relations between the two countries turn sour. If you're wondering where all the money went…look in Geneva. The Rothschild's private bank has its pick of new customers, and last year assets under management grew by an astonishing 26.4% (when most conventional asset managers were struggling to merely keep their existing assets.) Indications for the current year point towards continued strong growth. Coincidentally, within viewing distance of the Rothschild estate lies the Swiss country pile of no lesser person than King Fahd of Saudi Arabia… You don't need to buy a property in Switzerland to profit from the country's position as a safe haven for the world's rich. Shares of Banque Privée Edmond de Rothschild are listed on the Zurich stock market, and they currently trade at a p/e of less than 10. The Rothschilds are busily buying back shares, and chances are the price won't remain at its low level for much longer. Sven Lorenz
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