EFTA02527054

From: Jeffrey Epstein <[email protected]> Sent: Tuesday, October 20, 2009 9:16 PM To: Sultan Bin Sulayem Subject: Re: Dubai Inc. Needs Change at the Top By ANDREW CRITCHLOW chttp://online.wsj.com/search/search_center.html?KEYWORDS=NDREW+CRITCHLOW&ARTICLESEARCHQUERY_PARSE R=bylineAND> Faced with a continuing financial crisis of savage proportions, Dubai ri=ks retreating into its past rather than facing up to its new reality. The Gulf=20 emirate needs to radically overhaul its state-controlled companies if it is=to overcome its $80 billion mountain of debt. Yet rather than seize the opport=nity to introduce international standards of governance and transparency, the pe=ple whose poor judgment led Dubai to the brink have kept their jobs. For wester= lenders with billions of dollars still at stake, that is troubling. Take Dubai World, the conglomerate that has just been radically restruct=red after running up almost $60 billion of liabilities on an ill-judged acquisi=ion spree. Its deals included buying struggling Madison Avenue retailer Barneys=for $800 million, investing in an $8.8 billion Las Vegas casino development and=20 paying $100 million for the Queen Elizabeth II liner, which has since spent=most of its time languishing in a Dubai dry dock. Dubai World has now cut its work force by 15% in an effort to save $800=20 million over the next three years. Surprisingly, its senior managers remain=in place, including Sultan bin Sulayem, the chairman who masterminded the expansion. That has disappointed bankers who fear that, unless senior manag=rs are held more accountable, the mistakes of the past will be repeated. But holding senior Emirati officials like Mr. Sulayem responsible for th=ir decisions will be tricky. The Sulayem family's ties to Dubai's ruli=g Maktoums run deep. Mr. Sulayem's father was a key adviser to the family. The sam= is true of many other of the emirate's business leaders whose reputations have =een damaged by the crisis. Western lenders would rather see experienced and suitably qualified executives running Dubai's companies with proper accountability to an=20 independent board and creditors. Yet Dubai's ruler, Sheik Mohammed bin =ashid Al Maktoum, appears to be heading in the opposite direction, possibly handing =ore power to his sons after being let down by some of his key lieutenants. This=20 could mean a bigger role in Dubai's corporate affairs for the popular b=t inexperienced 26-year-old Crown Prince Hamdan. Long term, this looks unsustainable. The scale of Dubai's financial =oes means painful changes can't be resisted for long. If the easy credit of=the past decade allowed officials like Mr. Sulayem to build Dubai World into a truly=20 international company, the next 10 years will see banks demanding greater=20 transparency in return for capital. Write to Andrew Critchlow at <mailto EFTA_R1_01667523 EFTA02527054 On Tue, Oct 20, 2009 at 5:14 PM, Sultan Bin Sulayem href=ernallto " > wrote: Can you forward it to me From: Jeffrey Epstein <[email protected] <mailto:[email protected]» To: Sultan Bin Sulayem Sent: Wed Oct 2101:12:12 2009 Subject: i did not like todays artide.. i told you that there are those in your cou=try shooting at you.. the attack was very specific The i=formation contained in this communication is confidential, may be attorney-dient privileged, may constitute inside i=formation, and is intended only for the use of the addressee. It is the=property of Jeffrey Epstein Unauthorized use, disclosure or copying=of this communication or any part thereof is strictly prohibited and may be unla=ful. If you have received this communication in error, please notify us=immediately by return e-mail or by e-mail to [email protected] <[email protected]> , and destroy this communication and all copies thereof, induding all attachm=nts. DISCLAIMER This email and any files transmitted with it are confidential and contain privileged or copyright information. If you are not the intended recipient you must not copy, distr=bute or use this email or the information contained in it for any purpose other than to notify us =f the receipt thereof. If you have received this message in error, please notify the sender immedi=tely, and delete this email from your system. Please note that e-mails are susceptible to change.The sender shall not be =iable for the improper or incomplete transmission of the information contained in this communicati=n,nor for any delay in its receipt or damage to your system.The sender does not guarantee that thi= material is free from viruses or any other defects although due care has been taken to minimise t=e risk. 2 EFTA_R1_01667524 EFTA02527055 The information contained in =his communication is confidential, may be attorney-client privileged, m=y constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to [email protected], and destroy thi= communication and all copies thereof, including all attachments. 3 EFTA_R1_01667525 EFTA02527056