Sultan Ahmed Bin Sulayem of Dubai speaks at a news conference on November 10, 2005 in New York City.
Mario Tama | Getty Images News | fake images
The CEO of Dubai’s largest port has been replaced by the company after details of his past relationship with deceased sex offender Jeffrey Epstein became public.
On Friday, DP World announced in a statement that it had appointed Essa Kazim as chairman of its board of directors and Yuvraj Narayan as group chief executive, replacing Sultan Ahmed bin Sulayem.
The latest release of files related to Epstein by the US Department of Justice revealed that the financier once referred to Sulayem as a “close personal friend” and called him one of his most trusted friends in other files. Sulayem has not been charged with any criminal offense.
A disclosure to Nasdaq Dubai, where DP World holds listed bonds, said Sulayem had resigned “with immediate effect”.
Sulayem led Dubai’s largest port operator as president since 2007 and CEO since 2016.
The statement did not name Sulayem, but said the company “affirmed that the new appointments support its sustainable growth strategy and reinforce its role in strengthening global supply chains and support Dubai’s position as a leading hub for trade and logistics.”
CNBC sought comment from Sulayem through DP World, where he served as president and CEO, but did not receive a response.
Kazim was most recently governor of DIFC, the financial center of Dubai. Narayan was deputy chief executive and chief financial officer of DP World since 2005.
Sulayem is one of Dubai’s most prominent business figures, hailing from one of the Emirate’s leading families. His father was an advisor to the ruling Al Maktoum family and Sulayem played a key role in the rise of Dubai as an economic center.
Sulayem oversaw the growth of Dubai’s Jebel Ali port into a major deepwater shipping hub and the expansion of DP World into an international logistics empire that now oversees ports that handle a tenth of the world’s container trade.
He also headed Nakheel Properties, a developer owned by the Dubai government, although he was replaced amid a major board shake-up following Dubai World’s debt problems during the 2008 financial crisis.
A ‘close personal friend’ of Epstein
The extent of Sulayem’s relationship with Epstein emerged in recent weeks following the release of the latest files.
Records show the Emirati businessman was in contact with Epstein after the financier was convicted of soliciting a minor for prostitution in 2008.
Authorities have emphasized that a mention in Epstein’s files does not indicate evidence of wrongdoing or prove that the name was part of an alleged client list or blackmail scheme.
Jeffrey Epstein and Sultan Ahmed bin Sulayem, CEO of DP World Group.
House Oversight Committee Democrats
Pressure from DP World partners
This week, pressure mounted on Sulayem to resign after international partners halted new deals with DP World, calling on the company to take “necessary measures.”
Canada’s second-largest pension fund, La Caisse, which has invested more than $5 billion alongside DP World over the past decade, said it would suspend the “deployment of additional capital alongside the company.”
In a statement to CNBC, La Caisse said it was “important to distinguish the company, DP World, from the individual, Sultan Ahmed bin Sulayem, who is the focus of the current situation.”
“In this regard we have made it clear to the company that we hope it will clarify the situation and take the necessary measures,” added the pension fund.
A spokesman for British International Investment, which invests with DP World in four African ports, said it would also suspend new investments.
“In light of the allegations, we will not be making any new investments in DP World until the company has taken the necessary steps.”