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 c