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Ferguson Says Dubai Crisis Won't Hit Racing Spend
Sheikh Mohammed’s bloodstock adviser John Ferguson “insisted the ruler of Dubai’s spending on racing & breeding would be unaffected by the financial crisis facing the emirate,” reported racingpost.com. Last week Dubai World (a Dubai government-owned conglomerate) asked for a 6-month moratorium on a £36 billion (A$70bn) debt “that sparked a global stock market fall & has even raised fears of a double-dip: a 2nd recession following the early signs of a recovery from the 1st one”. But Ferguson stressed the finances of Dubai World & 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” & 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 & 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 & owns the world’s largest stallion & breeding operation.