Why Royal Families in the World Still Exist (And How They Actually Spend Their Money)

Why Royal Families in the World Still Exist (And How They Actually Spend Their Money)

You probably think of crowns and velvet capes when someone mentions royal families in the world. It’s a bit of a cliché. We see them on Netflix or in the tabloids, looking expensive and somewhat detached from reality. But honestly, the reality is way weirder. There are roughly 26-30 sovereign monarchies left—depending on how you count the Commonwealth realms—ruling over billions of people.

It’s not just about the British. Not by a long shot.

While King Charles III gets the lion's share of the press, the Sultan of Brunei is living in a palace with 1,788 rooms. Meanwhile, the King of Norway takes the train like a normal person. It’s a bizarre spectrum of power. Some of these people have absolute control over their country’s laws, while others are basically high-end mascots who aren't allowed to have a political opinion.

People always ask: why do we still do this? It seems so medieval. But for many nations, the crown is the only thing stopping the whole place from falling apart. It’s the "glue" that survives messy elections and 24-hour news cycles.

The Power Scale of Royal Families in the World

Not all crowns are created equal. You’ve got your constitutional monarchs—think Sweden, Japan, or the Netherlands—who are essentially human flags. They show up, cut ribbons, and look dignified. They have zero "hard" power. If King Willem-Alexander tried to pass a law today, he’d probably be looking for a new job by tomorrow.

Then you have the absolute monarchs. This is where things get serious.

In Saudi Arabia, the House of Saud doesn't just "influence" the government. They are the government. King Salman and Crown Prince Mohammed bin Salman (MBS) hold the keys to the world's largest oil reserves. There is no parliament to veto their decisions. If they want to build a $500 billion mirrored city in the desert (NEOM), they just start digging. It’s a level of raw authority that feels totally alien to someone living in a Western democracy.

Between these two extremes, you find "semi-constitutional" setups. Look at Jordan or Morocco. King Abdullah II of Jordan is a crucial diplomat in the Middle East. He has real say in foreign policy and military matters, but there’s still a parliament and a prime minister to handle the day-to-day grind of taxes and trash pickup. It’s a delicate dance. He has to be popular enough to lead but powerful enough to keep the region’s volatile politics from boiling over.

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The Money: How They’re Actually Funded

Money is usually where the drama starts. It’s also where most people get the facts wrong.

The British Sovereign Grant is often cited as a huge burden, but it’s actually a percentage of the profits from the Crown Estate—a massive portfolio of land and properties. The King gives the profit to the government, and the government gives a slice back (currently around 12-25%) to pay for the palace roof and the staff. It’s a weird, circular business deal.

In contrast, the Thai Royal Family is in a league of its own. The Crown Property Bureau manages assets estimated to be worth over $40 billion. We’re talking massive stakes in banks and industrial conglomerates. King Maha Vajiralongkorn is widely considered the richest royal on the planet. He spends a significant amount of time in Germany, which has sparked massive protests back in Bangkok. People are starting to ask why so much national wealth is tied to a single bloodline.

Then you have the "Bicycling Monarchies" of Scandinavia. These are the "relatable" ones. King Harald V of Norway actually competed in the Olympics for sailing. These families are relatively cheap to run. They don't have the golden carriages or the thousands of staff members. They live in modest (for a king) houses and their kids go to public schools. It’s a survival strategy. If you don’t act like a god, people won’t feel the need to overthrow you.

Why Japan’s Imperial House is Totally Different

The Chrysanthemum Throne is the oldest continuous hereditary monarchy in the world. Legend says it goes back to 660 BCE. That’s a long time to keep one family in charge.

But Japan’s setup is unique because of the "Emperor as a symbol" rule. After WWII, Emperor Hirohito had to publicly renounce his divinity. Today, Emperor Naruhito is literally forbidden from having "powers related to government." He can't even vote. His entire existence is dedicated to Shinto rituals and being a living embodiment of Japanese history.

It’s a lonely gig.

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The family is also facing a massive demographic crisis. Under current law, women lose their royal status if they marry a commoner. This happened with Princess Mako, who moved to NYC to live a normal life. Since only men can inherit the throne, the entire line depends on one young boy, Prince Hisahito. If he doesn't have a son, the oldest monarchy on Earth might just... end. The government is currently debating whether to let women stay in the family, but the traditionalists are fighting it tooth and nail. It’s a fascinating look at how ancient traditions clash with 21st-century reality.

The Role of Diplomacy and "Soft Power"

You can’t talk about royal families in the world without mentioning soft power. This is the stuff you can't measure in dollars or tanks.

When the King of Spain goes on a state visit to South America, he isn't there to sign trade deals (though he helps). He’s there as a cultural bridge. He represents centuries of shared history. This is why monarchies survive in the modern era. They are the ultimate brand ambassadors.

A president is a politician. Half the country usually hates them. But a monarch is supposed to be above the fray. They represent the "idea" of the country. For the UK, the late Queen Elizabeth II was the ultimate diplomat. She met 13 out of 14 U.S. Presidents during her reign. That kind of institutional memory is priceless for a government. Politicians come and go, but the monarch stays, remembering what the previous guy said thirty years ago.

The Critics and the Future of the Crown

Let’s be real: the republican movement is growing. In places like Australia, the Bahamas, and Jamaica, there’s a serious push to ditch the monarchy and become republics. The argument is simple: why should a person born into a specific family in London be the head of state for a country thousands of miles away?

It’s a valid point.

The Commonwealth is currently in a state of flux. Barbados became a republic in 2021, and others are watching closely. The "romance" of royalty is wearing thin in the face of post-colonial reckoning. People want to know about the history of the wealth—where it came from and who was exploited to get it.

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Yet, in other places, the monarchy is a shield. In Bhutan, the "Dragon King" Jigme Khesar Namgyel Wangchuck is genuinely beloved. He’s the one who pushed the country toward "Gross National Happiness" instead of just GDP. He voluntarily gave up absolute power to create a democracy because he thought it was better for the people. When the royal family is the one leading the charge for progress, people tend to want them to stick around.

Misconceptions About Royal Life

It isn't all champagne and tiaras.

  1. They can't say whatever they want. Most royals live in a "gilded cage." Every word is scripted. Every gesture is analyzed by the press. Imagine never being able to have a public opinion on the thing you’re most passionate about because it might be "political."
  2. They work—sort of. While they aren't grinding 9-to-5s in a cubicle, their schedules are packed with "engagements." This means hundreds of meetings, dinners, and ceremonies every year. It’s boring. It’s a life of endless small talk with people you don't know.
  3. Security is a nightmare. You can't just go for a walk. You can't go to the grocery store without a detail. For the younger generation of royals, this is often the hardest part to swallow.

The "lifestyle" is actually a job. It’s a performance that never stops. If you stop performing, the public starts asking why they’re paying for you.

How to Follow Royal Developments Without the Fluff

If you’re interested in the actual geopolitical impact of these families, stop looking at the fashion blogs.

Check out the official court circulars if you want to see what they actually do all day. Look at the legislative changes in the Middle East to see how absolute power is shifting. Follow the "Republic" campaigns in the UK and Australia to understand the legal hurdles of changing a government structure.

The world of royalty is changing. It’s becoming more transparent, whether the families like it or not. The survivors will be the ones who manage to be useful, not just decorative.

Next Steps for the Curious:

  • Audit the Cost: Look up the "Sovereign Grant" annual reports for the UK or the "Royal House" budgets for the Netherlands. Most of these are public records. You’ll see exactly how much goes to travel, staff, and building maintenance.
  • Study the Laws: Research the "Salic Law" and how it still affects who can inherit thrones in Europe. It explains why some families are shrinking while others stay huge.
  • Monitor the Commonwealth: Keep an eye on the news out of Jamaica and the Bahamas over the next 12 months. Their constitutional debates will likely set the tone for the future of the British monarchy's global footprint.
  • Track the Wealth: Read the investigative reports from outlets like The Guardian (specifically their "Cost of the Crown" series) or Forbes's list of wealthiest royals. It provides a much clearer picture than the PR-friendly "official" net worths often cited.