Saturday, December 5, 2009

Is Dubai's Ruler Still in the Horse Race?

Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum did not do any buying at this week’s Tattersalls mare sales at Newmarket, reports FT.

This is unusual.

This year, alone, before the financial crisis, he bought $100 million worth of yearlings, horses aged between one and two years.

John Ferguson, the bloodstock adviser, claims it has nothing to do with the Dubai World crisis. As if to prove the point, Ferguson spent $1.95 million of Sheikh Mohammed’s money buying eight foals at Tattersalls’ sales two days after Dubai World asked for a standstill agreement on its debt. But many wonder if the Sheikh's old buying habits will continue. If they don't, the UK horse race industry is about to face a sectoral crisis that even the most macro-aggregate thinking economist might acknowledge that, at least in this case, disaggregated sector money flows matter.

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