“Business is business” is something we say alot, and it is correct most of the time. The past 2 weeks has seen a takeover in the stock market that has been the main topic in everyone’s discussions, and not for the right reasons!

AlMal has been taken over by AlKharafi group, controlling more than 51% of the company according to latest newspaper sources. This move effectively ends AlSaqer’s control of the company. AlSaqer and AlKharafi are political rivals in the same area and have not had the best relationship.

The business is business slogan does not apply here in my opinion. There are bigger and more important ethical and social factors in this deal -

  1. The timing of the takeover - AlKharafi group started aggressively entering the market the day after Jassem AlSaqer (Allah yur7ima) passed away. Mohammed AlSaqer and his brothers were in their funeral and 3aza while AlKharafi took over their company.
  2. The purpose of the takeover - The company is not a gold mine, there is nothing really special about the company other than it being owned by AlSaqer. The purpose has been purely personal for political reaons!
  3. Bullying and abuse of power - Having alot of money is good, having alot of money with alot of political influence (the recent alliance with the ruling family) is even better, but using that power of money and influence for personal agendas and attacks is ridiculous! The backlash from other Kuwaitis and especially businessmen will not be good. Everywhere I have been in the past two weeks, everyone has been speaking negatively of them. The best quote I heard from a prominent businessman has been - The money AlKharafi has is not considered money, the money Warren Buffet has is what real money is about (he gave away more than 80%, or about $37 billion of his $44 billion fortune).
  4. Implications on other MP’s - This takeover could be interpretted as a message to anyone else who messes with AlKharafi in parliament or outside! If you say anything negative about me, I can crush you in the market if you’re involved, and many members of parliament own significant shares or have positions in listed companies. All these members will have to watch what they say from now on when it comes to him.
  5. Control of media - This is what pisses me off the most! All newspapers live off AlKharafi companies, either from advertising revenues from companies like MTC, NBK, NIG…and many more that are controlled by them to a certain extent, or from simple things such as materials for the newspapers, since AlKharafi are the only providers of paper used for printing these newspapers!