What was Mohammad Reza Pahlavi’s Net Worth?
Mohammad Reza Pahlavi, the final Shah of Iran, led the country from 1941 until he was deposed in the Iranian Revolution in early 1979. At the time of his death in 1980, his net worth was $2 billion, equivalent to about $7.2 billion in today’s dollars.
During his reign, Iran underwent rapid modernization in industry and military, as well as significant social, economic, and political reforms. However, civil unrest grew due to the Shah’s authoritarian rule, including the violent suppression of protestors by his military.
Ultimately, the Shah and the Iranian monarchy were overthrown and abolished as a result of the revolution.
Mohammad Reza Pahlavi’s Oil Wealth
Mohammad Reza Pahlavi, as the Shah of a country with one of the largest sources of oil on the planet, was enriched through income generated by the state-owned National Iranian Oil Company. In 1962, the company paid $12 million in dividends to an account controlled by the Shah, which is the equivalent of $117 million in today’s dollars.
Shah of Iran’s Estimated $4 Billion Wealth at Time of Ouster
When the Shah fled Iran in 1979, he and his family brought an estimated $4 billion in wealth to their new countries of residence. The Shah reportedly controlled $1 billion of that amount, which was held in Swiss bank accounts. His personal assets included a majority equity stake in a German steel company called Knipp, as well as other real estate and investments. All of these assets were controlled by the Pahlavi Foundation, which notoriously refused to disclose the value of its assets or estimated annual income. When asked for estimates of the organization’s assets, a foundation official infamously replied, “What is money?”
Mohammad Reza Pahlavi: Early Life and Education
Mohammad Reza Pahlavi was born in Tehran, Iran on October 26, 1919 to Reza Khan and Tâdj ol-Molouk. His father went on to become the first Shah of the House of Pahlavi of the Imperial State of Iran. Mohammad Reza had a twin sister named Ashraf and was the third of his 11 children.
Growing up, he was negatively impacted by his father’s authoritarian ways and found emotional support from his mother and sisters. He was eventually sent to a Swiss boarding school, where he played football and learned French. Returning to Iran, he attended a military academy in Tehran.
Mohammad Reza Pahlavi’s Early Reign
In 1941, Nazi Germany’s invasion of the Soviet Union caused tensions with Iran, which had been neutral in the conflict. British and Soviet forces later invaded Iran and deposed Reza Shah, causing the collapse of the Iranian military. Mohammad Reza became the next Shah, but struggled with low self-esteem and spent much of his time writing French poetry. He communicated with his exiled father via letters.
The White Revolution and Mohammad Reza’s Modernization Efforts
Mohammad Mosaddegh’s nationalization of the British-owned oil industry in the early 50s was short-lived, as a military coup d’état launched by the US and the UK deposed him and reinstated the Shah. Through the Consortium Agreement of 1954, foreign oil firms were brought back, and the Shah became a major figure in OPEC. His influence led to a surge in oil prices that significantly impacted Western economies.
Mohammad Reza, the Shah, aimed to restore Iran to its former glory and prove himself an indomitable leader. He introduced the White Revolution in 1963, a series of social, economic, and political reforms to modernize the country. Mohammad Reza nationalized key industries, redistributed land, made massive infrastructure investments, provided land grants and subsidies to peasants, introduced profit sharing for industrial laborers, oversaw the construction of nuclear facilities, and launched successful literacy programs. He also issued tariffs and preferential loans to Iranian businesses, creating a new industrialist class that contributed to the manufacturing of automobiles, appliances, and other goods.
Mohammad Reza Pahlavi’s Reforms Led to Sustained Economic Growth and a Strong Military
Iran experienced sustained economic growth in the 1970s due to Mohammad Reza Pahlavi’s sweeping reforms. The country surpassed the US, UK, and France in economic growth rates, with national income rising 423 times over. Billions were spent on industry, healthcare, education, and the military, which grew into the fifth-strongest in the world by 1977. For Mohammad Reza, this meant an end to foreign intervention in the country.
Civil Unrest and Overthrow of Mohammad Reza Pahlavi
Civil unrest began mounting in Iran in the late 70s despite Mohammad Reza Pahlavi’s political achievements. Disorder was further exacerbated by the Jaleh Square massacre and the Cinema Rex fire. In early 1979, the Revolution led to the overthrow of the Iranian monarchy and Pahlavi went into exile. The Iranian monarchy was formally abolished, and Ayatollah Khomeini led the new Islamic Republic of Iran.
Mohammad Reza’s Marriages and Children
In 1939, Mohammad Reza married Princess Fawzia of Egypt for political reasons, and they had one daughter named Shahnaz. They divorced in 1948 due to Mohammad’s infidelity. Mohammad then married Soraya Esfandiary-Bakhtiary in 1951, but they were not happy together and divorced in 1958. The following year, he married Farah Diba, with whom he had four children: Reza, Farahnaz, Ali, and Leila. Farah remained his wife until his death.
Mohammad Reza Pahlavi’s Death
Mohammad Reza was diagnosed with lymphocytic leukemia in 1974, but was not informed of his condition until 1978. He traveled to various countries for treatment and ended up in Cairo, Egypt. While undergoing a splenectomy, he suffered an injury to his pancreas which led to an infection and ultimately resulted in his death on July 27, 1980.
