Crisis, no pressure for the Sheikh

Ferguson: Dubai crisis will not hit racing spend

SHEIKH MOHAMMED’S bloodstock adviser John Ferguson insisted on Friday that the ruler of Dubai’s spending on racing and breeding would be unaffected by the financial crisis facing the emirate.

On Wednesday, Dubai World, a Dubai government-owned conglomerate, asked for a six-month moratorium on a £36 billion debt that sparked a global stock market fall and has even raised fears of a 'double-dip' – a second recession following the early signs of a recovery from the first one.

But Ferguson, speaking at the Tattersalls December foal sale in Newmarket on Friday, stressed that the finances of Dubai World and the sheikh’s racing interests are “separate in every way”.

Markets around the world reacted with shock to the announcement that Dubai World was unable to meet its interest repayments, although the FTSE 100 ended trading one per cent up yesterday, partly reversing the previous day’s 3.2 per cent fall.

Dubai World has been described as the city state’s key engine of growth and has interests around the world, including ports and property.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai’s supreme fiscal committee, issued a statement saying the Dubai government understood “the concerns of the markets and the creditors”.

“However, we have had to intervene because of the need to take decisive action to address [Dubai World’s] debt burden,” he added.

Any significant cutback in investment by the Dubai ruling family would have a disastrous impact on the bloodstock business, with the Maktoums providing the backbone to this year’s breeze-up and yearling sales, accounting for as much as a third of the turnover at some of the flagship events.

Additionally, Sheikh Mohammed runs the Godolphin racing operation and owns the world’s largest stallion and breeding operation. His other contributions include many high-profile race sponsorships by Dubai-based companies.

In Dubai, he has masterminded the £1.5 billion new racecourse at Meydan, which is scheduled to host the World Cup in March.

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I think Sheik Mo's equine interests are a drop in the barrel, so the speak, for him. I am sure his own personal wealth is unaffected by this current crisis.