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Well, just when we thought the world was at last struggling out of the economic mire, the Kingdom of Dubai looks set to drop us right back in it!

I've got two reasons to be interested/concerned in what's going on over there - 1) it puts into perspective the financial challenges and massive risks for even the very richest of nations in attempting to make the desert bloom, and 2) could this be the start of the financial disintegration of international horse racing?

When Sheikh Mohammed started out on creating his dream of making Dubai the centre of world leisure and tourism, as well as for the super-rich jet-set, it all seemed very much pie in the sky. But with his seemingly limitless wealth the Dubaians have built an astounding array of hotels, resorts, attractions and luxury homes, making their country the place to go and be seen.

Now, it seems that much of that building and development was done on the back of bank of loans that the state institutions are seriously struggling to repay. The 3% fall in world stock markets yesterday may just be an entree ahead of a highly unpalatable main course. Looks like the Brits are going to 'cop it' once again as well, with the cursed Royal Bank of Scotland (sadly now owned by the British taxpayer) owed more than $5 billion dollars. Frightening!

Watching the boom in Dubai from Israel, many people were asking the government and banks here why Israelis were not trying to compete and do the same thing. I think we now have our answer.

As for horse racing, well, there is absolutely no doubt that the huge sums of money invested by the Sheikh in British and international racing and breeding over the last 20 years have kept the sport buoyant and have employed many thousands of people; both directly and indirectly.

If the funds are now running out, there is every reason to expect that the Sheikh will cut back drastically, forcing an already plummeting bloodstock market to its knees and leaving many racehorse trainers and staff without a patron. The worst fear seems to be that there is no-one to obviously step up to the mark and fill the Sheiks shoes.

In two months time the Meydan Racecourse is due to open in Dubai, the most expensive sporting project in history which has so far cost no less than a staggering $2 billion. The facility is truly out of this world, but now, maybe, it will be out of business before it even has a chance to be seen for all it is worth.

Worrying times indeed.