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Meydan and Dubai World Cup - no turning back!
Published by charl on December 15, 2009
RACING fanatics around the world who have been worried about the financial crisis in Dubai and its impact on the 2010 Dubai Racing Carnival will be able to get some sleep in the wake of reassuring announcements from the Dubai Government on Monday.
While the comments from a government spokesman have a bearing on Dubai’s financial commitments and not directly on the Racing Carnival, it has obvious reassuring qualities for the thousands of racing industry employees in Dubai and elsewhere.
Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Financial Support Fund, said on Monday: ”The Government of Dubai remains committed to its high standards and its obligations. We are confident in our economic model, and in the long-term health and outlook for our economy.”
The Dubai Government on the same day ordered the repayment of $4.1 billion to Nakheel’s sukuk (bond) holders, backed by a $10 billion support from Abu Dhabi, as part of a comprehensive set of measures to deal with investor concerns.
The government has also given Dubai World up to April 30, 2010, to re-negotiate a further standstill agreement with creditors on the balance of the $26 billion debt being restructured - out of $59 billion in liabilities. The $10 billion support comes a few weeks after two Abu Dhabi banks subscribed to $5 billion worth of Dubai bonds.
“The remaining funds would also provide for interest expenses and company working capital through April 30, 2010 - conditioned on the company being successful in negotiating a standstill as previously announced,” said Sheikh Ahmad.
Insiders maintain that the mammoth Meydan project, started in 2007, and racing in Dubai have never been in danger of cancellation throughout the existing crisis. Horses and horseracing represents immense pride and history itself in Dubai and lies at the very heart of the personal success and traditional sportsmanship of the Maktoum Family.
While the completion of the huge and vastly ambitious Meydan City - a self-contained community consisting of high-end commercial and luxury residential plots, retail outlets and air-conditioned arcades with canal, waterfront and promenade views - may take longer than anticipated, the project will be carried to fruition, whatever it takes!
Meanwhile Sheikh Hamdan Bin Rashid Al Maktoum, the Deputy Ruler of Dubai and UAE Minister of Finance, last Thursday paid an inspection visit to Meydan City. Accompanied by Saeed Al Tayer, Chairman of Meydan, Sheikh Hamdan toured the sports, leisure, business and tourist faculties of the mega city and had a look at the new racetrack that will host the 2010 Dubai World Cup.
Sheik Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, has been a longtime horse enthusiast. He is one of the world’s premier endurance riders and is married to Princess Haya of Jordan, president of the International Equestrian Federation.
In late 1981, he purchased Gainsborough Stud at Woolton Hill, near Newbury, Berkshire, United Kingdom. He owns Ballysheehan Stud in County Tipperary, Ireland. He also owns Gainsborough Farms Inc in Versailles, Kentucky. His racing operations include the ownership of Darley Stables and he is the leading partner in his family’s Godolphin racing empire.
In 2001, he bulked up his horse operations in the United States with the purchase of Jonabell Farm in Lexington. Among the top stallions stabled there are 2007 Kentucky Derby winner Street Sense and his sire, Street Cry, 2006 Preakness Stakes winner Bernardini, and Medaglia d’Oro, who sired Rachel Alexandra, winner of this year’s Kentucky Oaks and Preakness.
Meydan is also a top sponsor of next year’s World Equestrian Games in Lexington. Jamie Link, CEO of the World Games 2010 Foundation, said recently he expects Dubai’s financial troubles will have no effect on that commitment.
A leading bloodstock agent commented: “Sheikh Mohammed with his vision for horseracing and thoroughbred bloodstock set the standard for thoroughbred sales and horseracing in the world. But with Dubai in trouble and Ireland, the bloodstock capital also experiencing financial difficulties, we could see a kind of ‘recovery’ in the market.
“This means we could see exorbitant prices paid for thoroughbreds over the last several years drop to a level where smaller bloodstock agents and buyers will be able to enter or re-enter the market. Racing will become more affordable. The downside is that prize monies might drop, but it will be relative to the cheaper prices of horses. We will win on the one hand and lose on the other.”
South African trainer Mike de Kock, who has started preparing his horses for the 2010 Carnival at his Dubai stables, said that the new track at Meydan looked very good and that the new training facilities were in full use. “For us it is all systems go. We are looking forward to the Carnival.”
He added: ”Sheikh Mohammed and his family are passionate about horseracing and their contributions over decades are immeasurable. I trust that they will see through this crisis.”
- Sources: Gulf News, tvg.com, wikepedia.org, dawn.com.
-Image: Gulf News. (Sheikh Hamdan at Meydan)
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Alec Hogg on Tue, 15th Dec 2009 12:45 pm
This is very good news for racing worldwide - and especially SA where the Dubai influence is enormous in terms of opportunities for our horses and the investment by the Royal Family.
British author and academic and Dubai expert Dr Christopher Davidson pointed out on my radio show last night that the only place where the cranes never stopped working during the past month’s panic was at Meydan. That suggest despite the setbacks racing will continue to go from strength to strength in Dubai. The full interview is at http://bit.ly/7er7Mb