The Power of Monopoly
Why and How is the Al-Mulla family so rich and powerful in Kuwait?
Like virtually all rich Arab merchants, Al-Mulla do not produce or make anything, they are just intermediaries who re-sell goods and services made by others.
Despite this, Al-Mulla are so rich and powerful because they are exclusive agents for major international brands, giving them monopoly powers:
In partnership with Behbehani, another super-rich merchant family in Kuwait, are exclusive agents in Kuwait for:
These brands are supposed to be in competition with each other … if someone buys a Chrysler, for example, then they are not going to buy a Fiat or a Mercedes, but this kind of logical market thinking does not exist in closed markets like Kuwait, where monopoly financial power is all that matters. So, not only do you have one company that has exclusive rights to import and market a brand name, but they are given such exclusive rights for many brands, that are supposed to be in competition with each other.
Other super-rich merchant families have exclusive rights over other brands such as Al-Sayer (Toyota, Lexus), Al-Ghanim (Chevrolet, Cadillac, Ford, BMW and others).
So, for the consumer in Kuwait, the question is not “are you going to buy a Mercedes or a Lexus or a BMW?”
Instead, the question is: “are you going to buy from Al-Mulla, Al-Sayer or Al-Ghanim?”
The competition is more between the monopoly-controlling merchant families, than between the brands.
Monopolies, of course, are excellent breeding grounds for corruption.
Many countries in the world fight against monopolies, not only because they can lead to corruption, but also because they are damaging to national economies. But in places like Kuwait, monopolies are actively encouraged and protected by government law. As my bitter personal experience shows, there is a strong corrupt connection between these monopolies and the government.
All of this is just about the automobile part of the Al-Mulla Group, where I was employed. There are plenty of other divisions, and they all work on the same monopolistic exclusive agency basis.
