Dubai’s DP World replaces CEO after Epstein links emerge

The CEO of Dubai’s largest port has been replaced by the company after details of his past relationship with the late sex offender Jeffrey Epstein were made public.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 its board of directors and Yuvraj Narayan as group Chief Executive Officer, replacing Sultan Ahmed bin Sulayem.

The U.S. Department of Justice’s latest release of files related to Epstein 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 accused of any criminal wrongdoing.

A disclosure to Nasdaq Dubai, where DP World maintains listed bonds, said Sulayem had resigned “effective immediately.”

Sulayem was at the helm of Dubai’s largest port operator as chairman since 2007 and CEO since 2016.

The statement made no mention of Sulayem but said the company “affirmed that the new appointments support its strategy for sustainable growth and reinforce its role in strengthening global supply chains and supporting Dubai’s position as a leading hub for trade and logistics.”

CNBC sought comment from Sulayem through DP World, where he served as chairman and CEO, but did not receive a response.

Kazim was most recently the Governor of the DIFC, Dubai’s financial center. Narayan was deputy CEO and CFO at DP World since 2005.

Sulayem is one of Dubai’s most prominent business figures, coming from one of the Emirate’s main families. His father was an advisor to the ruling Al Maktoum family and Sulayem played a key role in the ascendance of Dubai as an economic hub.

Sulayem oversaw the growth of Dubai’s Jebel Ali port into a major deep-water shipping hub and the expansion of DP World into an international logistics empire that now oversees ports handling a tenth of the world’s container trade.

He also led Nakheel Properties, a Dubai government-owned developer, though he was replaced amid a major board restructuring following Dubai World’s debt issues 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.

The records show the Emirati businessman was in contact with Epstein after the financier was convicted of soliciting prostitution from a minor in 2008.

Authorities have stressed that a mention in the Epstein files does not indicate evidence of wrongdoing nor prove that the name was part of a purported client list or blackmail scheme.

According to the documents, their exchanges included business discussions, with Sulayem often seeking Epstein’s advice on meetings, connections and investments.

It also delved into arrangements with masseuses; sexual encounters with women; escort and prostitution services; lewd comments and jokes; and pornography.

Pressure from DP World’s partners

This week, pressure mounted on Sulayem to resign after international partners paused new deals with DP World, calling for the company to take the “required action.”

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 pause “additional capital deployment alongside the company.”

In a statement sent 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.”

“On that point, we have made it clear to the company that we expect it to shed light on the situation and take the necessary actions,” the pension fund added.

A spokesperson for British International Investment, which invests with DP World in four African ports, said it would also pause new investments.

“In light of the allegations, we will not be making any new investments with DP World until the required actions have been taken by the company.”