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I see that Dubai has debts of $80 billion, of which $60 billion is accounted for by the government-owned property development company Dubai World, which is essentially bust.
This is a lot of money for a country of only 2 million inhabitants to be owing.
It is currently being partially bailed out by Abu Dhabi, who are not best pleased by all accounts.
It occurs to me that Sheikh Mohammed and other members of the Dubai ruling family might have their arms twisted about their enormous investment (ie ongoing spending binge) in racing and bloodstock by their rich "uncles". What has hitherto appeared to be sporting/generous/glamorous might now be seen to be merely profligate.
This would have a most interesting effect on racing worldwide, not least in the UK.
I wonder what the chances are of some kind of fire sale?
Dubai’s oil reserves will be exhausted in 20 years time so may be this latest news will make the relevant parties prepare contingency plans for when the Maktoum era begins to end, none of the sons have the same passion for horse racing as their fathers do anyway.
I’m surprised that forum members have so little to say on this matter. Anyway, here’s today’s Guardian’s take on the crisis as it could affect the sport.
http://www.guardian.co.uk/sport/2009/no … ubai-debtsI’m surprised that forum members have so little to say on this matter.
Because it is rude to gloat?
Nobody to blame but Sheikh Mo himself
The loans they got from there neighbours are not gifts but interest attached and will have to be paid back in full.
The country is going bust….i have no doubt that there all the major players on the future markets are selling anything they have invested in Dubai.
There currency will be be sold like hot cakes at the moment and bought back in a years time at a lower rate. No doubt JP McManus/John Magnier/Dermot Desmond are making a killing the past few weeks on Shiekh Mo own stupidity
14 Billion wiped off banks yesterday by a simple stay. Wait till he says they can’t pay back the debt he will be in serious trouble.
The Country is finished…..he needs to borrow to pay back the borrowing already incurred. He needs to sell state assets quick or he will be wiped out
It was pointed out on BBC News that the revenue Dubai earns now from oil accounts for the lowest % of GDP of all the Emirates.
It would seem all this construction of towering skyscrapers, sumptuous hotels and the greening of desert to produce a racecourse and golfcourse has been financed on the never-never that was the credit-bubble.
They’re a year later than most going belly-up due presumably to being able to call on the vast reserves of ‘real’ money derived from the times when oil was king.
I’m wary of judging a place not visited in person but from what I’ve seen of the alien Dubai skyline on telly and read about concerning the near-slave labour they employ makes me think that if I was offered a free ticket to anywhere in the world then it and North Korea would be vying for last place on the list of destinations.
Hasten to add that I’ve nothing against the Maktoums as individuals when in racing mode; they’re pleasant enough chaps once you get used to the proud diffidence characteristic of Arab royalty.
Should they have to cut back their lengthy strings of racehorses then so be it. David Johnson, Duncan Davidson, Trevor Hemmings etc have had to and I see no signs that NH is floundering as a result
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250-400 k of debt for every person in dubai. Wowww!
Not much more than us in Britain (130K p.p.) Double Wowwww!
I not British
Although in Ireland i think there is a 55k debt for every person.
Britain is okayish with that because they have a good economy base…Dubai rely on a finite resource that will be gone soon
You should change the "no doubt" part to "no proof", as you have offered none. I could not care less myself just worrying about my own life and family, but from what I read, I would have thought if this news was so predictable it wouldn’t have hit nearly 200 points of the London Stock Exchange yesterday?
Marb – I would say the surprise was not it happening but the timing of it – my view was it would have been another two or three years before the bubble burst.
This is just a scaled up version of a family living beyond its means.
It is interesting the news broke on the eve of a week long holiday in the region.
It was clear something was off when not a single horse was sold to the sheikhs at the Keeneland November sale. Usually they’re buying up everything in sight.
Come on Marble..I am Irish. We all know how JP has made his fortune aswell as the others. He made a killing from the crumble of the Mexico currencey a few decades ago. My point mearly was that Coolmore are having the laugh on Sheikh Mo ATM.
I send you my University Book on Future and Foward Markets and how all the "BIG" Player’s make money from the de-valuing of curreny’s. Maybe the "crowd" did not make money this time but they are Speculator’s/Arbitragteur’s on Finacial Markets.
The point was certainly not to be anything other than a passing "not serious" gesture on Dubai’s Misfortune.
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