Prince Alwaleed bin Talal has promised to donate his personal fortune of $32bn (£20.5bn) to charity.
The 60-year-old Saudi prince currently ranks at number 34 on the Forbes rich list and is one of the world's richest people.
According to the BBC, the prince said he was inspired by the Gates Foundation which was set up by Microsoft co-founder Bill Gates and his wife Melinda. Bill Gates himself is thought to have a net worth of nearly $80bn.
'A part of my faith'
He added: "Philanthropy is a personal responsibility, which I embarked upon more than three decades ago and is an intrinsic part of my Islamic faith."
The Saudi royal said that the money will be used to help "build bridges to foster cultural understanding, develop communities, empower women, enable youth, provide vital disaster relief and create a more tolerant and accepting world".
The prince was also keen to stress that there was no time limit for the money to be spent, ABC reports. It is thought the money will be donated over a the next few years and overseen by a board of trustees.
It was also announced that, after he dies, the prince's children, Prince Khaled and Princess Reem, will become president and vice-president of the charity.
The Saudi Arabian billionaire has pledged the money to his charitable organisation, Alwaleed Philanthropies. The prince has donated $3.5bn (£2.2bn) to the charity in the past.
Prince Alwaleed bin Talal is the nephew of King Salman and the chairman of Kingdom Holding Company which owns stakes in The Four Seasons, Fairmont and Raffles.
He is currently involved in the construction of a tower in Jeddah in the Red Sea. It is hope that the structure will rise over a kilometre - making it the tallest building in the world.
Despite being a member of the Saudi royal family, Prince Alwaleed bin Talal has no government rank.
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