Horse industry watches Dubai debt crisis

The emirate's ruler, Sheik Mohammed bin Rashid Al Maktoum, and his family have been among the highest spenders at major American thoroughbred auctions dating to the 1980s, often paying millions of dollars for top bloodstock even during market downturns such as the current one.

Dubai World, the main investment arm of the Middle Eastern city-state, is asking for at least a six-month delay on paying back a nearly US$60 billion debt. It was unclear what effect the country's debt crisis would have on the sheik's horse racing and breeding interests and whether the American thoroughbred market would feel any repercussions.

“We've seen no sign that it's going to have any impact, and we certainly hope they're able to work their way through the situation,” said Nick Nicholson, president of Keeneland, a Lexington racetrack and auction house where the sheik is a major horse buyer and regularly attends sales.

Sheik Mohammed 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 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 winner Bernardini, and Medaglia d'Oro, who sired Rachel Alexandra, winner of this year's Kentucky Oaks and Preakness Stakes.

Oliver Tait, chief operating officer at Jonabell, declined to comment Friday about the debt crisis except to say that operations at the farm hadn't changed.

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