Dubai crisis won't affect Sheikh's racing ambitions, insists advisor

The emirate's ruler will this week send out another clear signal that he will continue to prop up British racing.

His chief bloodstock advisor John Ferguson will keep vendors happy by buying some choice mares at the Tattersalls Mares' Sale at Newmarket, the climax to the European sales season.

The Maktoum family provided the backbone to this year's yearling and breeze-up sales, accounting for as much as a third of the turnover at some flagship events.

Sheikh Mohammed's assets include Darley Stud, which stands stallions in the UK, Ireland, Australia, America, Japan and France. His Godolphin racing operation is one of the biggest in the world.

And Ferguson is adamant that British racing will not be affected. He insisted: "His Highness Sheikh Mohammed's involvement with horses has no relation to the Dubai corporate restructuring."

Dubai has borrowed $80billion (£48bn) to finance construction designed to reinvent it as a centre for tourism. But with the real estate market collapsing, the millionaire's playground is sliding into financial disaster.

Dubai World, the state's main holding company, which owns assets ranging from the iconic Palm Island and various ports around the world, sent the world's stock markets into a panic last week with the news that it wants creditors to give it a six-month standstill on its debts. It owes some $59bn.

But with neighbouring Abu Dhabi set to bail out Dubai, Sheikh Mohammed, who is vice-president of the United Arab Emirates, will still continue his racing interests.

That is also good news for the Dubai World Cup, which takes place on 27 March at the new Meydan racecourse. The grandstand, which will hold 80,000 people, has cost £1.2bn alone.

But the coming months are certain to be difficult for the Sheikh.

One bloodstock agent, who spoke under condition of anonymity, said: "His involvement may be good for British racing, but continuing to splash out at the sales while Dubai World owes a fortune to creditors clearly sends the wrong message. Is it ethically correct?

"It will be interesting to see what people make of the opening of Meydan, with all its opulence, while Dubai is in financial crisis. I should imagine Sheikh Mohammed is going to feel very awkward."