During the weeks of uncertainty, Godolphin and Dubai representatives of Sheikh Mohammed assured the racing community that the problems of Nakeel (a subsidiary corporation of Dubai World) would not affect his racing operation nor would it affect MGM's bid to run Aqueduct's racino

It will not affect  the Emirates National Oil Company takeover of Dragon Oil, London-listed £2.3 billion Caspian Sea producer.

Citizens of Dubai and the UAE have been hurt and shocked at the media frenzy which exaggerated the liquidity problems of Dubai World and portrayed the country as being in free fall.

Much of that frenzy appears to have been generated by Rupert Murdoch's various international media operations.  The Times of London in particular skewed their reports to exclude positive reports from official international financial services organisations. 

Instead it published comments from dissident British former Dubai residents and Durham University professors who called for Sheikh Mohammed's removal from office.

Murdoch has several country leaders on his hit list and he is using his media against Barach Obama, Gordon Brown, Silvio Berlusconi and now Sheikh Mohammed. 

He published Sarah Palin's book and is financing her sales/political-campaign tour through his media enterprises, i.e., Fox News, and employees.

Dubai World had the $4.1 billion on hand which was due today for payment and is meeting with bank creditors to negotiate a standstill on debt.  It will eventually sell some of its foreign assets.

Abu Dhabi loaned Dubai World a further $10 billion to cover Dubai World's business needs until the end of April and bills owed to creditors and contractors.  

Confidence had returned to the Middle Eastern markets last week, but they jumped 10% yesterday after Abu Dhabi's announcement. 

The delay in making the loan and an odd, early announcement that Abu Dhabi would not temporarily cover the debt has damaged both Dubai's and the UAE's credit worthiness. 

One has to wonder why it took the oil-rich Emirate so long to change its mind.  

Susan's Views http://www.susansviews.com