THE PRESS LORDS OF KUWAIT

C O N F I D E N T I A L SECTION 01 OF 08 KUWAIT 05979

STATE FOR NEA/ARP
USIA FOR NEA, R/NA

E.O. 12356: DECL:OADR
TAGS: OPRC KPRP KU
SUBJECT: THE PRESS LORDS OF KUWAIT

REFS: A. 83 KUWAIT A-7 (NOTAL)
- B. KUWAIT 3922 (NOTAL)
- C. KUWAIT 0670


1. CONFIDENTIAL - ENTIRE TEXT.


2. SUMMARY: IN LESS THAN 30 YEARS, KUWAIT HAS
DEVELOPED A POWERFUL CLASS OF NEWSPAPER MAGNATES WHICH,
NOT SURPRISINGLY REFLECTS THE POLITICAL-ECONOMIC
GROUPINGS IN MODERN KUWAITI SOCIETY. END SUMMARY.


3. REFTELS WELL POINT OUT THE ROUGH DIVISION OF THE
KUWAITI POWER STRUCTURE INTO A SUNNI MERCHANT
ARISTOCRACY, THE RULING AL-SABAH FAMILY, THE JENAAT
CLAN, AND THE SHIA MERCHANT ARISTOCRACY, CLOSELY ALLIED
WITH THE AL-SABAHS. OTHER INFORMAL POWER CENTERS
INCLUDE VARIOUS SUNNI AND SHIA CONSERVATIVE RELIGIOUS
FACTIONS AND AN INCHOATE LEFTIST GROUPING. LOOKING AT
THE FULL RANGE OF KUWAITI MEDIA, A GENERAL DIVISION MAY
ALSO BE DISCERNED.


A. GOVERNMENT- (I.E. AL-SABAH) CONTROLLED: KUNA
(KUWAIT NEWS AGENCY),KUWAIT TELEVISION (2 CHANNELS),
KUWAIT RADIO (BROADCASTING IN ARABIC, FARSI, ENGLISH
AND URDU),AND THE GOVERNMENT MINISTRIES' PUBLICATIONS
INCLUDING "AL-ARABI" (CIRCULATION: 300,000),THE
LARGEST CIRCULATION MAGAZINE IN THE ARAB WORLD
(PUBLISHED MONTHLY BY THE MINISTRY OF INFORMATION).


B. SUNNI MERCHANT ARISTOCRACY: "AL QABAS" (DAILY;
AL-SAQER, AL-NISIF, AL-KHURAFI, AL-BAHAR AND AL-SHAYA
FAMILY),"AL-ANBA" (DAILY; MARZOUK FAMILY),"OSRATI"
(MONTHLY; A DIFFERENT BRANCH OF THE MARZOUKS).


C. JENAAT CLAN: "AL-WATAN" (DAILY; LARGELY BY MUSAED
AL-SALEH FAMILY).


D. NON-MERCHANT ARISTOCRACY SUNNI: "AL-SIYASSAH"
(DAILY; JARALLAH FAMILY),"ARAB TIMES" (ENGLISH
LANGUAGE DAILY; ALSO JARALLAH FAMILY),"AL-RAI AL-AAM"
(DAILY; MASAEED FAMILY),"AL-NAHDA" (MONTHLY; ALSO
MASAEED FAMILY),"KUWAIT TIMES" (ENGLISH-LANGUAGE
DAILY; "ALTICO" FROZEN FOOD IMPORTER YUSUF S. ALYAN).


E. SHIA MERCHANT ARISTOCRACY: "AL-YAQZA" (MONTHLY;
BEHBEHANI FAMILY).


F. SUNNI FUNDAMENTALISTS: "AL-MUJTAMA" (WEEKLY; THE
SOCIAL REFORM SOCIETY, IDENTIFIED WITH THE MUSLIM
BROTHERHOOD).


G. LEFTISTS: "AL-TALIAT" (BI-WEEKLY, ACTUALLY
APPEARING IRREGULARLY; FORMER NATIONAL ASSEMBLY DEPUTY
SAMI AL-MUNAYYES).


4. THE PUBLICATIONS OWNED BY THE SHIA, THE SUNNI
FUNDAMENTALISTS, LEFTIST "AL-TALIAT", AS WELL AS THE
ENGLISH-LANGUAGE PRESS AND OTHER WEEKLIES AND DAILIES,
HAVE LIMITED INFLUENCE ON THE LARGER KUWAITI SOCIETY
(THE ENGLISH-LANGUAGE DAILIES ARE PROFITABLE CASH COWS
FOR THEIR OWNERS WHO ALSO RECEIVE ALMOST DOLLARS
100,000 (KD 28,000) A YEAR FROM THE GOK AS A SUBSIDY).
WHILE "AL-TALIAT" AND "AL-MUJTAMA" HAVE A CERTAIN
NUISANCE VALUE TO THE KUWAITI POLITICAL AND ECONOMIC
ELITE, THEY ARE COMPARATIVELY LIMITED IN TERMS OF
POLITICAL AND ECONOMIC INFLUENCE. IT IS THE
GOK-CONTROLLED ELECTRONIC MEDIA AND THE FIVE ARABIC
DAILIES (UNDER THE MODERATING HAND OF GOK CENSORSHIP)
THAT HAVE A POWERFUL, DAILY IMPACT ON THE WAY KUWAITIS
VIEW THEMSELVES, THE UNITED STATES AND THE WORLD.
REFTEL C FOCUSED ON THE DECISION-MAKING STRUCTURE IN
THE MINISTRY OF INFORMATION WHICH RUNS RADIO AND
TELEVISION IN KUWAIT, THIS CABLE FOCUSES ON THE
OWNERSHIP AND DIRECTION OF THE FIVE ARABIC DAILIES.


5. AL-RAI AL-AAM
--------------

FOUNDED ON APRIL 16, 1961, "AL-RAI AL-AAM" IS THE
OLDEST BUT LOWEST CIRCULATING OF THE FIVE
ARABIC-LANGUAGE DAILIES AND IS WHOLLY OWNED BY FOUNDER
CONFIDENTIAL

CONFIDENTIAL

PAGE 02 KUWAIT 05979 02 OF 08 021158Z

ABDULAZIZ F. AL-MASAEED. AL-MASAEED, IN HIS SEVENTIES,
ALSO PUBLISHES THE WEEKLY "AL-NAHDA" (PUBLISHER'S
ESTIMATED CIRCULATION: 110,000, OF WHICH ALMOST HALF IS
SUPPOSED TO BE IN SAUDI ARABIA). HE REPORTEDLY ALSO IS
A PARTNER IN SEVERAL HOTEL VENTURES IN THE UNITED ARAB
EMIRATES AND OWNS THE CARLTON HOTEL IN KUWAIT.

AL-MASAEED WAS A DEPUTY IN KUWAIT'S NATIONAL ASSEMBLY
FROM 1967 TO 1971. IN THE HEADY ATMOSPHERE OF THE
1961-1976 PERIOD, WITH FREEDOM OF THE PRESS AND A
FUNCTIONING PARLIAMENTARY DEMOCRACY, AL-MASAEED AND
"AL-RAI AL-AAM" WERE A FORCE TO BE RECKONED WITH. THE
PAPER WAS VERY MUCH IN THE IMAGE OF THIS PROUD,
SOMETIMES VINDICTIVE MAN OF LITTLE FORMAL EDUCATION.
AL-MASAEED IS FAMOUS IN KUWAIT FOR BEING A LITTLE ODD,
SOMETIMES SENSATIONALIST, AND LATELY ALSO MORE WILLING
TO OPENLY CALL FOR THE RESTORATION OF DEMOCRATIC
PRACTICES SUSPENDED BY THE AMIR THAN OTHER DAILIES (HIS
RIVALS ATTRIBUTE THIS TO THE FACT THAT "SINCE NO ONE
READS THE PAPER ANYWAY, THIS IS A GOOD WAY TO GET
ATTENTION").

ALTHOUGH THE PAPER WAS TRADITIONALLY ANTI-LEFTIST
(AL-MASAEED WAS VIRULENT IN HIS ATTACKS ON LEFTIST
PARLIAMENTARY LEADER AHMED AL-KHATIB DURING HIS TERM IN
THE NATIONAL ASSEMBLY) AND STRONGLY PRO-SABAH
(AL-MASAEED HAS CURRENTLY CONTRACTED KUWAITI SCULPTOR
SAMI MUHAMMAD TO CREATE A LARGER THAN LIFE STATUE OF
THE LATE AMIR ABDULLAH AL-SALEM, THE FATHER OF "KUWAITI
DEMOCRACY" FOR THE NEWSPAPER'S LOBBY),AL-MASAEED HAS
BECOME INCREASINGLY BITTER AT HIS PAPER'S DECLINE AND
AT THE CURRENT AMIR'S FAILURE TO RESTORE PARLIAMENT AND
FREEDOM OF THE PRESS SINCE 1986. WHEN AN EDITORIAL OF
HIS CALLING FOR DEMOCRACY WAS CENSORED IN EARLY 1989,
HE RESPONDED BY PUBLISHING WITH A BLANK EDITORIAL
SECTION ON THE FRONT PAGE, FOLLOWING THIS UP BY PUTTING
HIS OWN PICTURE IN THE SPACE THE DAY AFTER THAT.

DURING THE SALAD YEARS OF THE PAPER, HE DESCRIBED
HIMSELF AS A "SACK OF COAL TO MY ENEMIES", MEANING THAT
HE HAD THE POWER OF GETTING OTHERS DIRTY WITHOUT
GETTING HIMSELF SOILED. WITH INCREASED COMPETITION BY
BETTER-FUNDED AND MORE AGGRESSIVE RIVALS IN THE EARLY
1970S, "AL-RAI AL-AAM" HAS BEEN ON A 15-YEAR
CIRCULATION SLIDE. THE PAPER WEATHERED A FINANCIAL
CRISIS FROM 1982-1986 WHEN ADVERTISING REVENUE DRIED UP
IN THE WAKE OF THE SUQ AL-MANAKH CRISIS, AND IS NOW IN
DECENT, BUT GUARDED, FINANCIAL HEALTH, ALTHOUGH IT
REMAINS THE LEAST FINANCIALLY STABLE OF THE FIVE PAPERS.

ITS STANCE AS THE ONLY PRO-SYRIAN VS PRO-IRAQI OF THE
KUWAITI ARABIC DAILIES, IS DUE LESS TO ANY POSSIBLE
SYRIAN PAYOFFS THAN TO THE FACT THAT THE MANAGING
EDITOR IS A SYRIAN, GHASSAN SAMMAN, WHO OVERSEES MUCH
OF THE PAPER'S COMPOSITION. FAHED ABDULAZIZ
AL-MASAEED, THE OWNER'S SECOND SON, IS TECHNICALLY THE
EDITOR-IN-CHIEF, BUT HAS A SERIOUS DRINKING PROBLEM
(WHICH PLAYED A ROLE IN THE DEATH OF ABDULAZIZ
AL-MASAEED'S ELDEST, AMERICAN-EDUCATED SON).


6. AL-SIYASSAH
--------------

"AL-SIYASSAH" WAS STARTD IN 1965 AS A WEEKLY BY AHMED
ABDUL-AZIZ AL-JARALLAH, A KUWAITI OF RELATIVELY RECENT
SADI ORIGIN, AND BECAME A DAILY IN APRIL 1968.
SENIOR USIS FSN RECALLS THAT WHEN PAOS WOULD G IN THE
EARLY 1960S TO SEE THE THEN-POWERFU AL-MASAEED, CUB
REPORTER JARALLAH WOULD BE SENT OUT "TO BRING SOME
PEPSIS, AND CLOSE TH DOOR AFTER YOU."

A MAN OF RELATIVELY HUMBLE BACKGROUND, JARALLAH (NOW IN
HIS FIFTIES) WAS ABLE TO PARLAY A WINNING PERSONALITY
AND A FRIENDSHIP WITH THE THEN-MINISTER OF INFORMATION
INTO A PUBLISHING EMPIRE. AL-JARALLAH BOUGHT
"AL-SIYASSAH" FROM AL-MASAEED WITH A BANK LOAN AND THEN
SECURED THE LICENSE TO TURN "AL-SIYASSAH" INTO A DAILY
FROM HIS FRIEND THE MINISTER. IN 1976, AL-JARALLAH
BOUGHT THE LICENSE FORU,2T9YQ, FOR MORE
THAN KD 160,000. AL-JARALLAH'S SEPARATION FROM
AL-MASAEED WAS AMICABLE AND HE STILL CARRIES THE
DISTINCTION OF BEING THE ONLY ONE OF THE FIVE NEWSPAPER
OWNERS USUALLY ON GOOD TERMS WITH ALL THE OTHERS.

"AL-SIYASSAH" AND "ARAB TIMES" ARE OWNED FORMALLY BY
DAR AL-SIYASSAH FOR PRINTING, PUBLISHING AND
DISTRIBUTION WHICH IN TURN IS OWNED BY ITS
STOCKHOLDERS: AHMED AL-JARALLAH, SULAIMAN ABDUL-AZIZ
AL-JARALLAH (AHMED'S BROTHER AND AL-SIYASSAH BUSINESS
MANAGER),MESHA'AL AHMED AL-JARALLAH (AHMED'S ELDEST
SON, EDITOR OF THE "ARAB TIMES", SPEEDBOAT AND RACE CAR
ENTHUSIAST),AND SATTAM AHMED AL-JARALLAH (AHMED'S
3-YEAR OLD SON). THE COMPANY'S SHARES HAVE BEEN DULY
REGISTERED BUT, UNLIKE "AL-QABAS", HAVE NOT BEEN
PUBLISHED ANYWHERE. THE COMPANY ALSO OWNS A WEEKLY
NEWSPAPER "AL-HADAF" PUBLISHED ON FRIDAYS IN PLACE OF
"AL-SIYASSAH" TO ALLOW AL-JARALLAH TO HOLD ON TO ITS
PUBLISHING LICENSE, WHICH SOMEDAY MAY BECOME USEFUL.
"AL-HADAF" IS ALMOST ENTIRELY MADE UP OF FILLER
MATERIAL, "SOCIETY PAGES" AND HOLLYWOOD GOSSIP.

AL-JARALLAH STRIKES MANY AS SOMETHING OF A
NOUVEAU-RICHE SOCIAL CLIMBER WHO LOVES TO PRINT HIS
PICTURE ON THE FRONT PAGE OF HIS PAPERS INTERVIEWING
REGIONAL AND WORLD LEADERS, INCLUDING A LENGTHY
INTERVIEW WITH ADNAN KHASHOGGI IN THE "ARAB TIMES").
HE WAS A MAJOR PROMOTER OF, AND HEAVY PARTICIPANT IN,
THE OVERHEATED KUWAITI STOCK MARKET THAT COLLAPSED IN
1982, AND HAS BEEN PRIVATELY TAKEN TO TASK BY THE
MARZOUKS, AS WELL AS BY A LOT OF LESSER INVESTORS WHO
LOST THEIR SHIRTS IN THE COLLAPSE, FOR CONTRIBUTING TO
THE FINAL DEBACLE.

BUT AL-JARALLAH HAS ALSO SHOWN SOME POLITICAL COURAGE.
"AL-SIYASSAH" WAS THE ONLY ONE OF THE KUWAITI PAPERS TO
SUPPORT EGYPTIAN PRESIDENT SADAT'S PEACE OVERTURES TO
ISRAEL AND CALLED ON THE PLO TO MODERATE ITS POLICIES
YEARS AGO. THESE STANDS, PLUS A HARD-LINE ANTI-SYIAN
EDITORIAL POLICY, ARE USUALLY CONNECTED B OBSERVERS
HERE WITH AN ASSASSINATION ATTEMPT I APRIL 1985,
POSSIBLY CARRIED OUT BY RADICAL PLESTINIAN ELEMENTS
ALLIED WITH SYRIA. SINCE TEN, AL-JARALLAH HAS NOT
MELLOWED; HE HAS EEN A VOCIFEROUS SUPPORTER OF
LEBANESE GENERAL ICHEL AOUN (UNDER CENSORSHIP, THIS IS
THE BST WAY TO ATTACK THE SYRIANS) AND OF IRAQ (SO
PRO-IRAQI THAT HE HAS BEEN ACCUSED OF BEING ON HE
IRAQI PAYROLL, AS HE WAS ACCUSED OF WORKIN FOR THE
SAUDIS SOME YEARS AGO).

WHEN THE SS LA SALLE, FLAGSHIP OF THE US NAVAL FORCES
N THE GULF, CAME TO KUWAIT IN ERL 1989, AL-JARALLAH
WAS THE ONLY ONE OF FOUR EDITORS-IN-CHIEF CONTACTED BY
THE PAO WHO AGREED IMMEDIATELY TO DO A STORY ON THE
SHIP.


7. AL-WATAN
--------------

FOUNDED ON JANUARY 17, 1974, "AL-WATAN" IS KUWAIT'S
MOST CONSISTENTLY LEFT-WING ARABIC DAILY. IT COVERS
EVENTS AFFECTING THE PLO AND THE PALESTINIANS WITH
ALMOST AS MUCH CARE AS KUWAITI LOCAL NEWS. IT
GENERALLY REPRESENTS THE INTERESTS OF THE POWERFUL
10,000-MEMBER JENAAT CLAN WHICH ORIGINATED IN SOUTHERN
IRAQ AND CAME TO KUWAIT IN THE 19TH CENTURY. AS ONE
REPORTER PUT IT, "THE GULF BANK IS THE JENAAT BANK AND
"AL-WATAN" IS THE JENAAT MOUTHPIECE".

IN THE YEARS SINCE ITS FOUNDING, "AL-WATAN" HAS HAD
MANY CLASHES WITH THE GOK AND THE MINISTRY OF
INFORMATION'S CENSOR AS IT HAS BEEN A STRONG SUPPORTER
OF LEFT-WING POLITICAL ELEMENTS IN THE NATIONAL
ASSEMBLY, ESPECIALLY AHMED AL-KHATIB. IT PROVIDES THE
MOST EXTENSIVE COVERAGE OF THE KUWAIT LABOR MOVEMENT
AND FREQUENTLY FEATURES INTERVIEWS ON, OR GROUP
DISCUSSIONS OF, TOPICAL ISSUES WITH LESSER- OR UNKNOWN
KUWAITIS.

WHILE MAINTAINING A LEFT-OF-CENTER EDITORIAL LINE, THE
PAPER DOES NOT LET POLITICS GET IN THE WAY OF GOOD
BUSINESS. WHEN IN EARLY 1989 FUAD AL-HASHEM, ONE OF
THE PAPER'S MORE STRIDENT COLUMNISTS, GOT "AL-WATAN"
BANNED IN THE LUCRATIVE SAUDI MARKET FOR AN INTEMPERATE
ATTACK ON A FORMER SAUDI KING, HE WAS IMMEDIATELY
FIRED. EDITOR-IN-CHIEF JASSEM AL-MUTAWAA QUIPPED THAT
"HE EMBARRASSED US ONCE TOO OFTEN, HE'S BAD FOR
BUSINESS." THE "AL-WATAN" PRINTING SUBSIDIARY HAS ALSO
CONSISTENTLY UNDERBID THE OTHER KUWAITI PAPERS IN
MEETING USIS KUWAIT'S PRINTING NEEDS.

THE STRONGMAN OF "AL-WATAN" IS ITS CHAIRMAN OF THE
BOARD, CAIRO-EDUCATED MUHAMMAD MUSAED AL-SALEH, IN HIS
SIXTIES AND IN POOR HEALTH. A LAWYER WITH A VERY
SUCCESSFUL PRACTICE (AL-SALEH, GRAHAM AND JAMES),HE IS
A PASSIONATE ADVOCATE OF HUMAN RIGHTS, AN ADMIRER OF
AMERICAN DEMOCRACY (ADDING THAT "THE PROBLEM IS THE WAY
THE US BEHAVES OUTSIDE ITS BORDERS"),AND A PARTISAN OF
A MODERATE FORM OF ISLAM THAT HIS FUNDAMENTALIST
CRITICS HAVE TERMED AS "ATHEISM IN MULLAH'S CLOTHING".

THE PAPER IS OWNED BY DAR AL-WATAN FOR PRINTING, PRESS,
AND PUBLISHING, WHICH IS IN TURN CONTROLLED (51
PERCENT) BY THE AL-MASALEH COMPANY WHICH BELONGS TO
MUHAMMED MUSAED AL-SALEH AND HIS CLOSE RELATIVES.
AL-MASALEH COMPANY'S DIRECTOR IS NAJIB MUSAED AL-SALEH,
MUHAMMAD'S NEPHEW. TWELVE PERCENT OF DAR AL-WATAN IS
OWNED BY VERY WEALTHY FINANCIER YUSSUF ABDULAZIZ
AL-MUZAINI AND 15 PERCENT BELONGS TO SHAIKH FAHED
AL-AHMED AL-SABAH (THE ONLY AL-SABAH TO OPENLY OWN ANY
KUWAITI NEWSPAPER),WHO IS HEAD OF THE KUWAITI OLYMPIC
COMMITTEE. SHAIKH FAHED IS SOMETHING OF A "BLACK
SHEEP" IN THE AL-SABAH FAMILY HAVING BEEN INTIMATELY
INVOLVED IN THE "FATEH" MOVEMENT. THIS GIVES
"AL-WATAN" THE DUBIOUS DISTINCTION OF HAVING
CONNECTIONS WITH TWO FORMER KUWAITI GUERRILLAS: SHAIKH
FAHED, AND HARVARD-EDUCATED COLUMNIST AHMED AL-RIBI WHO
FOUGHT AGAINST THE SULTAN OF OMAN'S FORCES IN DHOFAR.
THE REMAINING 22 PERCENT OF DAR AL-WATAN IS HELD
PERSONALLY BY MUHAMMAD MUSAED AL-SALEH AND ABOUT HALF A
DOZEN SMALLER INDIVIDUAL INVESTORS.

THE PAPER'S EDITOR-IN-CHIEF JASSEM AL-MUTAWAA (ALSO A
JENAAT),IN HIS FORTIES, IS THE BROTHER-IN-LAW OF
MUHAMMAD MUSAED AL-SALEH.


8. AL-QABAS
--------------

WHILE "AL-WATAN" SEEMS TO HAVE A SOLID LOCK ON THIRD
PLACE IN CIRCULATION, THE TWO REMAINING KUWAITI PAPERS,
"AL-QABAS" AND "AL-ANBA" BOTH CLAIM THE DISTINCTION OF
BEING THE TOP-SELLING PAPER IN THE COUNTRY.

"AL-QABAS", FOUNDED IN 1972, IS A SOLID ENTERPRISE
OWNED BY SOME OF THE WEALTHIEST MEMBERS OF KUWAIT'S
SUNNI MERCHANT ARISTOCRACY. ACCORDING TO THE FOUNDING
CONTRACT OF DAR AL-QABAS FOR PRESS, PRINTING AND
PUBLISHING AS PRINTED IN THE OFFICIAL GAZETTE "KUWAIT
AL-YAWM", THE COMPANY'S SHARES ARE EQUALLY DIVIDED INTO
FIVE PORTIONS OF 400 EACH BELONGING TO:


A. YUSUF AL-NISIF, DEPUTY CHAIRMAN, WHOSE FATHER,
ORIGINAL SHAREHOLDER MUHAMMAD YUSUF AL-NISIF, DIED IN

1982.


B. BILLIONAIRE MUHAMMAD ABDEL-MUHSEN AL-KHURAFI,
DEPUTY CHAIRMAN OF THE CHAMBER OF COMMERCE, MEMBER OF
THE BOARD OF THE NATIONAL BANK OF KUWAIT, AND FATHER OF
THE CURRENT FINANCE MINISTER.


C. MUHAMMAD ABDULRAHMAN AL-BAHAR, ALSO A DIRECTOR OF
THE NATIONAL BANK OF KUWAIT, AND AGENT FOR GENERAL
ELECTRIC, VOLVO, AND MANY OTHERS.


D. ABDULAZIZ AL-SHAYA, CHAIRMAN, (WHOSE FAMILY
ORIGINALLY CAME TO KUWAIT FROM THE SAME NEJDI VILLAGE
AS THE AL-KHURAFIS). THE SHAYAS OWN THE KUWAIT
SHERATON AND A HOST OF OTHER BUSINESSES.


E. MUHAMMAD JASSEM AL-SAQER, CURRENT EDITOR-IN-CHIEF,
WHO REPLACED HIS FATHER, ORIGINAL SHAREHOLDER JASSEM
HAMAD AL-SAQER, DEPUTY CHAIRMAN OF THE NATIONAL BANK OF
KUWAIT, FORMER CHAIRMAN OF THE FOREIGN AFFAIRS
COMMITTEE OF THE DEFUNCT NATIONAL ASSEMBLY, AND BROTHER
OF ABDUL AZIZ AL-SAQER, THE POWERFUL CHAIRMAN OF THE
KUWAIT CHAMBER OF COMMERCE AND INDUSTRY.
THE CONTRACT ESTABLISHED THE COMPANY'S INITIAL CAPITAL
AT 15,000 KUWAITI DINARS WHICH MEANS THAT EACH ORIGINAL
SHAREHOLDER PAID KD 3,000 FOR THEIR 400 SHARES. NOT A
LARGE INVESTMENT FOR AN ENTERPRISE NOW WORTH IN THE
TENS OF MILLIONS OF DOLLARS. (THE BUSINESS MANAGER OF
"AL-WATAN" ESTIMATED THAT THE VALUE OF THE PHYSICAL
ASSETS OF THE PAPERS IS ABOUT 25 MILLION DOLLARS EACH.)

WHILE "AL-QABAS'" OWNERSHIP IS EQUALLY DIVIDED, THE
PAPER'S HEART IS MUHAMMAD JASSEM AL-SAQER, A WHITTIER
GRADUATE IN HIS EARLY 40S WHO HAS BEEN ITS DYNAMIC
EDITOR-IN-CHIEF SINCE 1982. THE AL-SAQERS ARE
ORIGINALLY MEMBERS OF THE ONAIZA TRIBE, AS ARE THE
AL-SABAH, AND WERE PIONEERS IN THE KUWAITI SEA TRADE TO
INDIA AND AFRICA UNTIL THE MID-19TH CENTURY WHEN THE
FAMILY FORTUNE AND FAMILY PATRIARCH WENT DOWN WITH ALL
HANDS IN THE INDIAN OCEAN. BY THE EARLY 20TH CENTURY,
THE FAMILY HAD STARTED A SECOND FORTUNE AND MUHAMMAD'S
GRANDFATHER HAMAD ABDULLAH AL-SAQER WAS A STRONG
OPPONENT OF AL-SABAH FAMILY RULE. IN THE 1938 MERCHANT
FAMILY REVOLT AIMED AT LIMITING AL-SABAH POWER,
MUHAMMAD'S TWO UNCLES, ABDULLAH (DIED 1974) AND
ABDULAZIZ (THE FIRST NON-AL-SABAH TO BE NAMED A
GOVERNMENT MINISTER),PLAYED PROMINENT ROLES.

FOLLOWING IN THE FAMILY TRADITION, MUHAMMAD JASSEM
AL-SAQER IS A STRONG, OFTEN WITTY, CRITIC OF AL-SABAH
AUTOCRACY, WHOSE CHALLENGES ALSO EXTEND INTO THE REALM
OF SPORT CLUB RIVALRIES. ALTHOUGH "AL-QABAS" IS MORE
CENTRIST THAN "AL-WATAN", IN MANY WAYS HIS WORLD VIEW
IS SIMILAR TO THAT OF MUHAMMAD MUSAED AL-SALEH: BOTH
PROFESS TO ADMIRE THE AMERICAN POLITICAL SYSTEM AND WAY
OF LIFE, BUT BOTH INTENSELY DISLIKE U.S. FOREIGN POLICY
IN GENERAL, AND IN THE MIDDLE EAST IN PARTICULAR
(ALTHOUGH MOHAMMED JASSEM IS A FERVENT SUPPORTER OF THE
US NAVAL PROTECTION REGIME AND PRESENCE IN THE GULF).
AS A MEMBER OF THE BOARD OF THE ARAB COMPANY FOR
TRADING SECURITIES, MUHAMMAD PARTICIPATED IN THE 1980
NEGOTIATIONS WHICH LED TO THE COMPANY PURCHASING 19
PERCENT OF THE NEW YORK INVESTMENT FIRM OF SMITH,
BARNEY. THE KUWAITI-SAUDI NEGOTIATING TEAM ALSO
INCLUDED MUHAMMAD'S BROTHER, WAEL, A PROMINENT
FINANCIER AND UC-BERKELY GRADUATE.

WITH EXPERIENCE IN INTERNATIONAL FINANCE, AL-SAQER HAS
SET UP AN INTERNATIONAL EDITION OF "AL-QABAS" CURRENTLY
PUBLISHED IN PARIS, LONDON AND MARSEILLES (FOR THE
NORTH AFRICAN MARKET),A VENTURE THAT HAS LOST MONEY
SINCE ITS INCEPTION IN 1985 (AL-SAQER ADDS THAT "THE
LOSSES ARE EXPECTED AND MEASURED"). HE HAS AMBITIOUS
PLANS TO PRINT THE INTERNATIONAL EDITION IN BUDAPEST
AND IN THE UNITED STATES WITHIN A YEAR. "AL-QABAS"
MAINTAINS THE MOST EXTENSIVE FOREIGN CORRESPONDENT
STAFF OF ANY KUWAITI NEWSPAPER WITH LARGE BUREAUS IN
WASHINGTON, LONDON, BEIRUT, CAIRO, AND EVEN A
CORRESPONDENT IN MOSCOW. THE LOCAL EDITION OF
"AL-QABAS" CIRCULATES EXTENSIVELY IN THE GULF, WITH
AL-SAQER MAKING THE CLAIM THAT THE PAPER IS THE
FOURTH-LARGEST CIRCULATING PAPER IN SAUDI ARABIA
(27,000 COPIES A DAY, AFTER THREE SAUDI PAPERS) AND A
GROWING MARKET IN IRAQ (ABOUT 9,000 COPIES). IN
KUWAIT, HE HAS BEEN THE NEWSPAPER TECHNOLOGY LEADER -
"AL-QABAS" WAS THE FIRST PAPER TO USE COLOR, AN
INNOVATION THAT THE OTHER FOUR WERE FORCED TO FOLLOW.

A CANDID MAN IN PRIVATE, WHO IS A USEFUL EMBASSY
INTERLOCUTOR, AL-SAQER ADMITS THAT THE PAPER'S KUWAIT
CIRCULATION IS ABOUT 70,000 INSTEAD OF THE 98,000 THAT
THE PAPER PUBLICLY CLAIMS. THE RIVALRY BETWEEN
"AL-QABAS" AND "AL-ANBA" SEEMS TO HAVE BEEN LARGELY
PERSONALIZED BY AL-SAQER AND FAISAL AL-MARZOUK, WHO
MAINTAIN ICILY CORRECT RELATIONS, BUT AT TIMES HAVE
TAKEN TO CUTTING EACH OTHER OUT OF GROUP PICTURES WITH
THE AMIR.


9. AL-ANBA
--------------

FOUNDED IN FEBRUARY, 1976 "AL-ANBA" CLAIMS A
CIRCULATION OF 102,000 WHICH ITS RIVALS REJECT AS AN
EXAGGERATION BY ABOUT 30 PERCENT. ITS MAJORITY OWNERS
ARE THE EXTREMELY WEALTHY AL-MARZOUK FAMILY. THE
MARZOUK'S PAST IS SIMILAR TO THAT OF OTHER SUNNI
MERCHANT ARISTOCRATS: MIGRATION FROM ARABIA IN THE
1700S AS PART OF THE SUBAY TRIBE, SEA TRADE FROM IRAQ
TO INDIA AND AFRICA, AND GOLD SMUGGLING. THE
AL-MARZOUKS ALSO PLAYED A LEADING ROLE IN THE 1938
MERCHANT FAMILY REVOLT AGAINST AL-SABAH ABSOLUTISM (THE
SHORT-LIVED 14-MAN PEOPLE'S LEGISLATIVE COUNCIL SET UP
THEN INCLUDED TWO AL-MARZOUKS AND ONE AL-SAQER).

THE KUWAIT PRESS HOUSE COMPANY WHICH OWNS "AL-ANBA" IS
OWNED LARGELY (84 PERCENT) BY THE THREE AL-MARZOUK
BROTHERS AND ONE NEPHEW:


A. KHALED YUSUF AL-MARZOUK: THE FAMILY EMPIRE BUILDER
LARGELY RESPONSIBLE FOR MOVING THE AL-MARZOUKS FROM THE
RANKS OF THE KUWAITI RICH TO THE SUPER-RICH BY
EMPHASIZING INTERNATIONAL FINANCE AND REAL ESTATE
INSTEAD OF TRADE.


B. FAISAL YUSUF AL-MARZOUK: HARTFORD UNIVERSITY
EDUCATED EDITOR-IN-CHIEF; DEPUTY CHAIRMAN OF THE
COMMERCIAL BANK OF KUWAIT; BOARD MEMBER OF PETRA BANK
(JORDAN) AND OF SEVERAL BAHRAINI BANKS; FORMER CHAIRMAN
OF KUWAIT SHIPBUILDING CORPORATION; AND HEAVILY
INVOLVED IN REAL ESTATE IN CALIFORNIA.


C. JASSEM YUSUF AL-MARZOUK: KUWAIT'S FIRST JET PILOT
AND FORMER DEPUTY CHAIRMAN OF KUWAIT AIRWAYS.

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D. WALEED KHALED AL-MARZOUK, KHALED YUSUF'S SON.

TWO OTHER AL-MARZOUKS PLAY PROMINENT ROLES AT THE
NEWSPAPER. COUSIN AHDI AL-MARZOUK HAS SERVED AS
CHAIRMAN OF THE BOARD OF DIRECTORS OF "AL-ANBA" AND
KHALED'S DAUGHTER BIBI, A PEPPERDINE UNIVERSITY
GRADUATE, IS DEPUTY GENERAL MANAGER AND LARGELY RUNS
THE PAPER DURING THE FREQUENT INTERVALS THAT UNCLE
FAISAL IS TRAVELLING ON BUSINESS. BIBI IS ONE OF ONLY
THREE WOMEN IN IMPORTANT POSITIONS IN THE KUWAITI
MEDIA. INTERESTINGLY, ONE OF THE OTHER TWO IS HER
OLDER SECOND COUSIN, GHUNAIMA FAHED AL-MARZOUK, OWNER
AND EDITOR-IN-CHIEF OF THE GLOSSY WOMEN'S MAGAZINE
"OSRATI".

THE REMAINING 16 PERCENT OF THE KUWAIT PRESS HOUSE
COMPANY IS HELD BY ABOUT 40 INDIVIDUALS, OF WHICH
SEVERAL ARE MEMBERS OF THE AL-FULAIJ FAMILY (ALSO
ORIGINALLY MEMBERS OF THE SUBAY TRIBE AND HISTORICALLY
BOTH BUSINESS AND MARRIAGE PARTNERS OF THE AL-MARZOUKS)
INCLUDING UNIVERSITY OF ARIZONA GRADUATE GHAZI
AL-FULAIJ, VICE CHAIRMAN OF "AL-ANBA", HIS BROTHER
FAISAL AL-FULAIJ AND THEIR COUSIN KHALED AL-FULAIJ ALI.

"AL-ANBA" IS, ALONG WITH "AL-SIYASSAH", LESS CRITICAL
OF US FOREIGN POLICY AND LESS CRITICAL OF THE STATUS
QUO IN KUWAIT THAN THE OTHER THREE DAILIES. THE PAPER
HAS TILTED TOWARDS IRAQ IN THE IRAN-IRAQ AND
SYRIAN-IRAQI STRUGGLE AND HAS HARSHLY CRITICIZED SYRIAN
INTERVENTION IN LEBANON FOR YEARS (THEY ALSO HAVE
SEVERAL ANTI-BA'ATH SYRIAN EXILES ON THEIR PAYROLL).
FAISAL AND BIBI HAVE BEEN PERSONALLY EXTREMELY
ANTAGONISTIC TO WHAT THEY REGARD AS KUWAITI SHIA
TROUBLE-MAKING IN THE COUNTRY. NOT SURPRISINGLY, THE
PAPER'S OFFICES WERE BOMBED IN JUNE 1976 AS A RESULT OF
LOCAL BUSINESS FEUDS. IN THE 1980S, BOARD MEMBER
KHALED YUSUF AL-MARZOUK WAS THE OBJECT OF A BUNGLED
ASSASSINATION ATTEMPT IN SPAIN THAT KILLED HIS DRIVER.
THE ATTACKERS WERE SUPPOSEDLY PRO-IRANIAN ELEMENTS. IN
THE 1985 PARLIAMENTARY ELECTIONS, THE PAPER STRONGLY
SUPPORTED RELATIVELY CONSERVATIVE, NON-FUNDAMENTALIST
CANDIDATES.


10. CONCLUSION
--------------

KUWAIT, WITH A POPULATION OF ALMOST TWO MILLION (27.9
PERCENT OF THEM KUWAITIS) SEEMS TOO SMALL A MARKET FOR
FIVE NEWSPAPERS WITH A CLAIMED COMBINED CIRCULATION OF
405,000 COPIES. EVEN ALLOWING FOR THE PAPERS' REGIONAL
AND INTERNATIONAL SALES, THE REAL FIGURE IS CLOSER TO
300,000. A SHORT-TERM FORECAST WOULD POINT TO A
FURTHER CONSOLIDATION OF THEIR MARKET SHARE BY THE BIG
THREE ("AL-ANBA", "AL-QABAS" AND "AL-WATAN") WITH
PERHAPS "AL-SIYASSAH" EVENTUALLY ABSORBING "AL-RAI
AL-AAM" AFTER THE DEATH OF ABDULAZIZ AL-MUSAEED.

ON THE POLITICAL FRONT, THE GOK CONFRONTS A DAILY
ARABIC PRESS WHICH, WHILE TEMPORARILY CURBED BY
CENSORSHIP, NEVERTHELESS TENDS TO BE PRO-DEMOCRACY, TO
REPRESENT THE INTERESTS OF THE SUNNI MERCHANT ELITE,
AND TO STAND IN OPPOSITION TO INCREASED AL-SABAH
AUTOCRACY. THERE IS LITTLE DOUBT THAT A RESTORATION OF
FREEDOM OF THE PRESS, AS IT EXISTED PRIOR TO1986,
WOULD BRING ABOUT THE IMMEDIATE RESURRECION OF AN
ADVERSARIAL RELATIONSHIP IN WHICH LEAING NEWSPAPERS
WOULD CHIP AWAY AT AL-SABAH PRROGATIVES. THIS IS
PROBABLY NOT GOING TO HAPEN FOR A LONG TIME, IF EVER.
AS WITH RESTORATON OF THE PARLIAMENT HOWEVER, THE GOK
IS UNLIELY TO FULLY TAKE THE LID OFF THE PRESS OR
RELA OTHER INTERNAL CONTROLS AS LONG AS IT REMAINS
ERIOUSLY CONCERNED ABOUT THE THREAT OF INTERNAL
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SUBVERSION. THIS, IN TURN, IS LIKELY TO BE A
TOP-PRIORITY CONCERN AS LONG AS THE INTERNAL ITUATION
IN IRAN REMAINS UNSTABLE AND THERE IS O NEGOTIATED
SETTLEMENT OF THE IRAN-IRAQ WAR
HOWELL





























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