Sultan Ahmed bin Sulayem of Dubai speaks at a press conference in New York City, November 10, 2005.
Tama Mario | Getty Images News | Getty Images
The CEO of Dubai’s largest port was replaced by the company after details of his past relationship with the late sex offender Jeffrey Epstein were made public.
On Friday, DP World announced in a statement that it had appointed Essa Kazim as chairman of the board and Yuvraj Narayan as group chief executive officer, replacing Sultan Ahmed bin Sulayem.
The latest release of Epstein-related files by the U.S. Department of Justice reveals that the financier once called Sulayem a “close personal friend” and one of his most trusted friends in other files. Mr. Sulayem has not been charged with criminal wrongdoing.
Sulayem has resigned with “immediate effect”, according to a disclosure to Nasdaq Dubai, which manages DP World’s listed bonds.
Sulayem has been at the helm of Dubai’s largest port operator since 2007 as chairman and as CEO since 2016.
Although Sulayem was not mentioned in the statement, the company said it “confirms that the new appointments support the company’s sustainable growth strategy, strengthen its global supply chain and strengthen its role in supporting Dubai’s position as a leading hub for trade and logistics.”
CNBC reached out to Sulayem for comment through DP World, where he served as chairman and CEO, but did not receive a response.
Kazim most recently served as governor of Dubai’s financial center, DIFC. Narayan has served as Deputy CEO and CFO of DP World since 2005.
Mr Sulayem is one of Dubai’s most prominent businessmen and comes 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 Dubai’s rise as an economic center.
Sulayem oversaw the expansion of DP World into an international logistics empire that grew Dubai’s Jebel Ali Port into a major hub for deep-sea shipping and now oversees a port that handles a tenth of the world’s container trade.
He was also the managing director of Dubai government-owned development company Nakheel Properties, but was replaced during a major board reorganization following Dubai World’s debt problems during the 2008 financial crisis.
Epstein’s “close personal friend”
The extent of Mr. Sulayem’s relationship with Mr. Epstein became clear in recent weeks after the release of the latest files.
Records show the Emirati businessman was in contact with Epstein, who was convicted in 2008 of soliciting prostitution from a minor.
Authorities stress that the mentions in the Epstein files do not show evidence of wrongdoing and do not prove that his name was included in the client list or the alleged blackmail scheme.
Jeffrey Epstein and DP World Group CEO Sultan Ahmed Bin Sulayem.
House Oversight Committee Democrats
Pressure from DP World’s partners
Pressure mounted on Mr Sulayem to resign this week after international partners suspended new contracts with DP World, calling on the company to take “necessary action”.
Canada’s second-largest pension fund, La Ques, which has invested more than $5 billion with DP World over the past decade, announced it would suspend “additional capital commitments with the company.”
“It is important to distinguish between the company DP World and the individual Sultan Ahmed bin Sulayem, who is the focus of the current situation,” La Ques said in a statement to CNBC.
“In this regard, we have clearly communicated to the company that we expect it to clarify the situation and take the necessary steps,” the pension fund added.
A spokesperson for British International Investment, which along with DP World invests in four African ports, also said it was suspending new investment.
“Until we take the necessary steps in light of the allegations, we will not make any new investments in DP World.”
