US embassy cable - 03KUWAIT138

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000138 
 
SIPDIS 
 
DEPT. FOR NEA/ARP 
 
E.O. 12958: DECL: 01/12/2013 
TAGS: PREL, PGOV, PINR, KU, IZ 
SUBJECT: GETTING THEIR HANDS DIRTY; INFLUENTIAL KUWAITI 
BUSINESSMEN STEP UP TO THE POLITICAL PLATE 
 
Classified By: Ambassador Richard H. Jones for reason 1.5 (d) 
 
1. (U) This message contains biographical information. 
Please see para. 8 for biographical information. 
 
2. (C) Summary.  Faced with ineffectual political leadership, 
some of the large commercial families of Kuwait have stepped 
into the political fray to derail the rising tide of Islamism 
here, according to one of Kuwait's most successful 
businessmen.  During discussions with Poloff and Commercial 
Chief, billionaire Fouad al-Ghanim detailed his political 
activism in Kuwait, and shared his thoughts on a post-Saddam 
Iraq, U.S. leadership and the Israel/Palestine conflict.  End 
Summary. 
 
3. (C) During a January 12 dinner hosted by Kuwaiti 
businessman Fouad al-Ghanim for a visiting delegation from 
the Council on Foreign Relations (CFR), Poloff and Commercial 
Chief discussed local politics with our host.  Calling 
Islamist MP Nasser al-Sane, the parliamentary leader of the 
Islamic Constitutional Movement, "the worst hypocrite," he 
said the Islamists "are taking the country down a black 
hole."  Al-Ghanim, himself a member of the CFR, who says he 
does not mix business with politics, explained that he has 
become more involved, as the ruling family has been incapable 
and/or unwilling to speak out against the Islamists. 
 
4. (C) Blaming the ruling family for not doing enough to 
combat "the downward spiral of Kuwait" (i.e. the waxing of 
Islamist power, as representative of the kind of thought 
which stifles political and economic reform), he said he told 
other merchant families they would have to get involved if 
they were to reverse the trend.  While criticizing the GOK, 
al-Ghanim also praised Kuwait for its freedoms. "Do you know 
of any other country in the region where one can sit in a 
Diwaniya and criticize the government?" he asked.  "Name one 
Saudi official who can speak openly!" 
 
5. (C) Al-Ghanim said he has personally and actively 
supported liberal (non-Islamist) candidates in many electoral 
districts throughout Kuwait.  Responding to Poloff,s 
question about how he influences voters to back his 
candidates, al-Ghanim said he used his personal financial 
resources to take care of their needs.  During Ramadan, for 
example, every household in Al-Sane's district received a 100 
lb. bag of rice from al-Ghanim.  In addition, he has sent 
voters on the umra pilgrimage at his own expense; three times 
chartering jets for this purpose, and one time sending his 
own.  Particularly in Bedouin districts, he said, "all (the 
voters) want is someone to take care of them."  Al-Ghanim has 
encouraged other successful businessmen to take care of 
voters, as well.  Noting one example, he said that after 
experiencing the largesse of one of his colleagues, 1200 
voters paid their respects by attending his Diwaniya (The 
average attendance in large Kuwaiti Diwaniyas would rarely 
surpass 100 people).  These types of efforts have cost 
al-Ghanim alone over KD 500,000 (over USD $1,5 million).  The 
Islamists do not have the personal resources to do this, he 
noted. 
 
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A stable Iraq necessitates a stable region 
------------------------------------------ 
 
6. (C) Al-Ghanim is very familiar with Iraq, having been 
raised and schooled there.  While he is interested in 
renewing his commercial ties in Iraq in the future, al-Ghanim 
repeated a warning he said he had recently shared with 
Secretary Powell and National Security Advisor Rice.  "You 
 
SIPDIS 
have to look at this on a regional level," he said.  "You 
cannot have stability in Iraq until you solve the situation 
in Palestine."  He added that solving this problem would help 
the U.S. in the region, by taking away the excuse Islamists 
and other Arabs and Muslims use to support their 
anti-Americanism. (Comment: During the Iran-Iraq war, he was 
involved in the construction of major infrastructure 
projects, such as power plants and bridges. End Comment) 
 
-------------------- 
Sow Peace, not Pride 
-------------------- 
 
7. (C) In addition to its actions in the Middle East, 
al-Ghanim said the U.S. needs to watch itself at home.  He 
said Americans have allowed the authorities to go "too far" 
in the U.S., creating the perception among many U.S. Muslims 
and their brethren abroad that the U.S. war on terror is a 
war on Islam.  Criticizing the Administration, al-Ghanim said 
there are too many high-level advisers who are "conceited" 
about American power, and this is reflected in both domestic 
and foreign policies.  "You need to sow peace in the world, 
not pride," he said. 
 
------------------------ 
Biographical Information 
------------------------ 
8. (U) Fouad M. T. Al-Ghanim, born 20 December, 1944, is a 
1966 graduate of Iowa State University, where he earned a 
B.SC in Sciences and Humanities.  He is the Chairman of Fouad 
Alghanim and Sons Group of Companies, which, according to 
post files, is "a multi-operational body of companies 
consisting of a number of fully and partly owned subsidiary 
companies based in the U.S., Europe, Africa and the Middle 
East.  The group engages in...diverse commercial enterprises 
which include direct representation of multi-national 
commercial contractors, manufacturers, civil construction and 
contracting, installation and manufacture of all forms of 
mechanical, electrical and electronic equipment, investment 
project management, hotel ownership, telecommunications 
engineering and management, aviation projects, real estate 
development, industrial production and general contracting in 
both the local and international arenas."  Mr. Al-Ghanim also 
serves as Chairman or a Member of the Board of the following: 
 
Chairman, Advanced Pathology Services, London 
Chairman, Energy International Petroleum Products Co. 
Director, Kuwait Medical Center 
Director, United Bank of Kuwait, U.K. 
Director, First International Merchant Bank, Ltd., Malta 
Member, International Conference Board, San Francisco 
Member, Council on Foreign Relations, New York 
Member, Advisory Board, Gulfstream Aerospace Corp., U.S.A. 
 
Mr. Al-Ghanim represents many U.S. companies in Kuwait, and 
is particularly active in the defense sector. 
JONES