Port and logistics powerhouse DP World reported on Friday, February 13, that it is changing its management leadership as pressure grew from the investment community over its long-time chairman and CEO’s ties to convicted sex offender Jeffrey Epstein. The company named one of the leaders of the Dubai financial community as its new chairman while elevating its Group Deputy CEO and Chief Financial Officer to the role of CEO.
The company simply stated that the long-time head of the company, Sultan Ahmed bin Sulayem, had “resigned from the company, effective immediately.” He had been in the leadership role first as Chairman since 2007 and Chairman and CEO since 2016.
He is one of the most prominent executives and political leaders to lose his position as the ties to Jeffrey Epstein emerged in the released documents from the U.S. Department of Justice. CNN reports bin Sulayem’s name appeared “thousands of times” in the most recent batch of documents, and he was referred to as a “best and trusted friend.” There were business discussions between him and Epstein, but much of it appears to be sexually explicit material.
As more documents became public, it was revealed that the relationship between the two men had lasted well over a decade. Further, bin Sulayem continued the contact after Epstein’s 2009 conviction and until shortly before his death while in jail in New York.
Investors had increased pressure on the company to address “the situation and take the necessary actions.” The UK’s British International Investment said earlier this week that it was suspending its investment activity with DP World. Long-time partner and investor Canada’s La Caisse, operators of Quebec’s pension and the largest pension fund in Canada, also said it would pause additional capital deployment until the company responded.
Both investors reportedly told Reuters today that they welcomed the company’s actions. BII said it looked forward to continuing its partnership, and Caisse said it would work with the new leadership of the company.
One of the prominent leaders of the Dubai financial community, Essa Kazim, was named Chairman of DP World. Since 2014, he has served as Governor of the Dubai International Finance Center, which oversees the country’s business environment and closely interacts with all the companies in the emirate. He also serves as Deputy Chairman of the Supreme Legislation Committee in Dubai.
Long-time executive Yuvraj Narayan was elevated to the role of CEO. He has been with the company since 2004 and has been in the role of Group CFO since 2005. As such, he was working closely with bin Sulayem as DP World grew rapidly from the operator of the Jebel Ali port to one of the leaders in the industry.
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DP World rose in prominence in 2006 when it acquired the venerable British shipping company P&O for $6.8 billion. The company also made investments, including Imperial Logistics and Syncreon, and recently announced it would be unifying its operations under the DP World brand.
The company’s profile says that it contributes more than 36 percent to the GDP of Dubai and about 12 percent to the GDP of the UAE. It operates in more than 80 countries. Last year, it reported nearly $20 billion in revenues.
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