Good morning, friends. Hump day is living up to its reputation as news dump day already, with plenty of big headlines coming out of the UAE this morning.

The big news for Dubai’s finance crowd: DIFC is getting yet another expansion. Dubai is pressing ahead with a major expansion of its financial hub, with the government approving a new AED 100 bn (USD 27 bn) development that will more than double the size of the Dubai International Financial Center (DIFC) over the next decade, according to a statement.

What’s planned: The DIFC Zabeel District will add 17.7 mn sq ft of space across six phases, including offices, residential, retail, and dedicated zones for fintech, AI, and innovation. The first phase is due to open by 2030, with the sixth and final phase slated for 2040 completion.

Why now: The expansion comes as the DIFC has seen occupancy rates as high as 99.8%, with officials pointing to future plans to add more space. Dubai is competing with other financial hubs like Riyadh to anchor itself as the region’s dominant financial center, wagering that scale, regulation, and lifestyle integration will keep global banks, asset managers, and tech firms choosing DIFC as their regional base. ADGM saw a similar move in 2023, when its jurisdiction was expanded to Al Reem Island.

We’ll have more on the news in tomorrow’s issue.

Meanwhile, Emirati firms continue their push abroad, with Emirates Global Aluminium putting pen to paper on a massive US smelter project in Oklahoma.

Plus: There’s a big investment theme this morning. Mubadala Capital just raised its debut fund, while Mubadala invested in Property Finder. Smaller startups are also getting a piece of the pie, with two AI-linked startups raising funds from regional VCs.

Watch this space

DEBT — AED paper gets another lift: The Eurasian Development Bank (EDB) is lining up an AED-denominated bond for listing on the ADX, adding another supranational name to the local-currency market, according to a DFM disclosure (pdf).

Why it matters: A listed AED note from a multilateral borrower broadens the menu beyond domestic credits and strengthens ADX’s pull for international issuers tapping regional liquidity.

Not a one-off: The plan builds on last year’s AED 200 mn local private placement — EDB’s local AED debut — tied to its push for local-currency trade financing after the UAE’s pact with the Eurasian Economic Union. EDB says it has since raised AED 385 mn in AED funding, with Central Asian demand picking up.

ADVISORS- BHM Capital is lead manager for the issuance.

M&A — Unikai board okays Al Wafir buyout bid: Dubai-listed Unikai Foods’ board formally recommended a voluntary conditional allcash offer from Kuwait-based Al Wafir Marketing Services for majority control, according to a bourse disclosure (pdf). Unikai’s shareholders will convene on 16 February to vote on the transaction, pending regulatory approval.

ICYMI- The board’s backing follows months of groundwork. In August 2025, Unikai lifted the cap on GCC ownership to 100% from 49%, opening the door to a regional investor. The company has been facing some balance-sheet pressure, with interest-bearing debt rising to AED 90.4 mn as of 9M 2025, more than 3x net income.

What’s on the table: The offer, which was tabled last week, should see Al Wafir acquire 50% plus one share and up to 51% of Unikai at AED 6.60 per share, representing a 7.84% premium to the stock’s last closing price of AED 6.12.

ADVISORS- Unikai tapped Al Mal Capital as an independent financial advisor and Abdulla Al Awadi & Associates as counsel. Meanwhile, FAB is acting as financial advisor and lead receiving bank, while Al Tamimi & Company is providing counsel to Al Wafir.

Data point

USD 470 bn — that’s the total value of assets under management in the UAE last year, state news agency Wam reports, citing a report by Capital Market Authority (CMA). Institutional market participation was on the up, with a 150% y-o-y surge in licensing activity recorded to reach 3.2k completed and approved licenses. Local capital pools were similarly busy, with the number of locally domiciled investment funds rising 322%, whilst overall funds under the CMA’s scope rose to 197, up from 119 in 2024.

IN CONTEXT- 2025 saw a host of international hedge funds arrive in the UAE, including Stronghold Capital, Pimco, Cambridge Associates, Davidson Kempner, and Arini. At the end of the year, another five senior portfolio managers from top hedge funds were reported to be launching UAE-based entities.

Happening today

Gulfood is underway, and runs until this Friday — but this time it’s taking place in two different venues: Dubai World Trade Center and Dubai Exhibition Center in Expo City. The massive F&B event will gather food distributors, producers, government officials, and investors and startups alike under, now, two roofs.

⛅WEATHER- We’re in for another breezy, pleasant day, with some clouds across most of the country. Dubai and Abu Dhabi will both see highs of 25°C, while Dubai will see an overnight low of 17°C and the capital will hit a low of 16°C.

Happening this week

Abu Dhabi is hosting the International Bar Association’s Annual Arbitration Day Conference on Wednesday and Thursday at the Rosewood Abu Dhabi. Law professionals and international industry players will meet for panel discussions on trends in the arbitration practice globally.

Plus: The World Customs Organization’s Technology Conference is on from Wednesday to Friday at the Adnec Center Abu Dhabi.

Our fellow photo nerds in the UAE will want to circle 29 January to 4 February on their calendars. This year’s Xposure, the global celebration of visual storytelling, features a who’s who of talented photographers — including our friend Romany Hafez, whose haunting analog work explores memory, presence, and sacred spaces. Romany will be giving a talk on Saturday, 31 January headlined Between Memory and Light. Don’t miss it if you love black-and-white photography as much as we do.

The big story abroad

Global trade is dominating headlines for the second morning running after the EU and India signed a trade agreement, paring down reciprocal tariffs on most goods. The move can be understood as a strategic buffer against volatile trade announcements by Washington. Markets will be watching closely Trump’s reaction to the news.

The EU is slashing or eliminating tariffs on 96.6% of goods bound for India, with its eyes doubling exports to India by 2032. Brussels will stagger these cuts over seven years, reaching zero tariffs on key commodities, like base metals, marine products, and textiles. In return, New Delhi is gradually cutting tariffs on EU-sourced cars, lowering them to 10% from as high as 110%, and fully axing duties on car parts in five to ten years. Other tariffs on machinery, pharma products, and chemicals are also getting mostly canceled.

Trump unfazed by USD slide: The greenback continued its slide on Tuesday, spurred on by comments made by US President Donald Trump, indicating a lack of concern about the currency’s decline —- “the USD is doing great,” he said in response to a question about the currency’s fall. The USD hit its lowest level in four years after a 1.3% dip yesterday, extending its 2026 losses to 2.6%.

AND IN MARKET NEWS- The S&P 500 closed at a fresh high yesterday, with investor optimism about the wave of upcoming Big Tech earnings fueling the rally. Meta, Microsoft, and Tesla will be out with their earnings today and Apple will follow suit tomorrow.

ALSO IT’S FED DAY- The US Federal Reserve will conclude its first policy meeting of 2026 today and markets are expecting a hold. Markets are also closely watching for Trump’s pick for Fed Chair Jay Powell’s replacement, with his nomination expected sometime this week.

WATCH THIS SPACE- Saudi Arabia yesterday said that it would not allow its airspace or territory to be used in an attack on Iran, Reuters reports. The news, delivered on a call between Crown Prince Mohammed bin Salman and Iran’s president, came a day after the UAE made a similar statement.

In context: Trump said last week that an “armada” was steaming toward Tehran.

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