Reidblog [The Reid Report blog]

Mr Bush had warned repeatedly that blocking the deal would send a dangerously discriminatory message to the world. He threatened repeatedly to veto any congressional legislation.

But with his public approval ratings at record lows and his Republican party abandoning him, one of the US’s closest allies in the Arab world concluded that he was no longer in control in Washington.

The decision by Sheikh Mohammed bin Rashid al- Maktoum, the ruler of Dubai, is likely to avert the political backlash that hit Washington last month and may prevent any further damage to diplomatic and security relations between the countries. But it underscored that Mr Bush, who still has nearly three years to go in his second term, has become perilously weak.