THIS MORNING: Turkey is pulling the brakes on its sukuk sale to ADQ

Good morning, wonderful people. It’s shaping up to be a busy and interesting news day, with plenty of investment news and an interesting read on the philosophy among Emirati entrepreneurs, which leads this morning’s news well.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Do you have unclaimed dividends from a decade ago? The SCA can help with that:The Securities and Commodities Authority (SCA) will distribute unclaimed dividends from before March 2015, after appointing First Abu Dhabi Bank (FAB) as the bank handling payments, according to a statement. The decision also includes claims for money held in dormant brokerage accounts.

To claim your payment: Submit a request to FAB via email, phone: 02 6161800, or head to any FAB branch with the supporting documents in the statement.

#2-Charities and organizations will be able to apply for Ramadan tent permits in Ajman via a new online system,inaugurated by Ajman’s Charitable Work and Endowments Coordination Council yesterday, reports Ajman News.

WATCH THIS SPACE-

#1- The UAE’s crackdown on illicit finance is paying off:Global watchdog Financial Action Task Force (FATF) is on track to remove the UAE from its “gray list” following a series of reforms, Bloomberg reports, citing sources in the know. The FATF’s assessors acknowledged significant progress during a recent visit, with removal from the list expected as early as 23 February, coinciding with the end of the FATF plenary in Paris. Several FATF member countries that had initially supported the UAE’s inclusion on the list are now in favor of its removal, Bloomberg previously reported.

SOUND SMART- Getting off the gray list requires a significant majority of FATF’s member countries to vote in the country’s favor.

Background: The UAE was initially placed on the list in March 2022. Last year, the UAE doubled down on its efforts to ramp up its financial compliance by rallying support from key FATF members through visits and updating anti-money laundering guidelines (pdf), among other measures.

#2-Turkey halted its proposed USD 8.5 bn sukuk sale to Abu Dhabi wealth fund ADQ as it looks for “cheaper options,” Bloomberg reports, citing people familiar with the matter. The Turkish government sees the yields ADQ has proposed for the debt as “unfavorable,” Bloomberg’s sources say, and Ankara is now reportedly waiting for global central banks to begin cutting interest rates later this year, which would “fuel appetite for emerging-market debt.“

REFRESHER- Turkey was considering offering 10-year bonds in tranches to ADQ last year, with proceeds geared towards stymying Turkey’s decline in foreign investments, which has thrown its balance of payments out of whack and resulted in short-term liabilities exceeding USD 200 bn.

DATA POINTS-

#1- Passenger traffic at Dubai International Airport (DXB) rose 31.7% y-o-y to 87 mn passengers in 2023, marking a recovery to pre-pandemic levels, according to a Dubai Media Office statement.While not quite reaching its peak of 89.1 mn passengers in 2018, the number rests just above the 86.3 mn passengers recorded in 2019. India was the top destination for travelers from the airport, followed by Saudi Arabia and the UK.

Dubai Airports is also making “advanced” plans to expand the existing capacity at Al Maktoum International Airport to accommodate more passengers and airlines in the absence of sufficient infrastructure at DXB, Dubai Airports CEO Paul Griffiths told Bloomberg (watch, runtime 7:15). However, precise timelines and details are still under deliberation and will be disclosed at a later date.

The figures got a lot of ink in the foreign press:Bloomberg | Associated Press | Reuters.

#2- Twelve food and beverage companies set up shop in Dubai Industrial City in 2023, investing a combined AED 800 mn, according to a press release.

#3-Female investor contribution to the country’s real estate market climbed 53.9% y-o-y to AED 90.5 bn (USD 25 bn) in 2023, Arabian Business reports, citing market analysis by Dubai-based real estate fund management firm Hedge & Sachs. The number of women investing in the UAE rose to over 38k during the year, compared to less than 27k in 2022. Hedge & Sachs’ analysis attributes the growth to “more financial literacy and exposure to investment and wealth management for women,” in addition to improved access to capital on the back of a rise in female employment and government empowerment initiatives.

In 2024: Women are forecast to account for 22% of property investments in Dubai in 1Q 2024, with a total expenditure of AED 12 bn (USD 3.27 bn), the analysis says, adding that a slump is expected due to slowing market growth and the onset of Ramadan.

HAPPENING TODAY-

#1- Global champs are here for the Dubai Dutyfreee Championships: World No.1 Iga Swatiek, former World No. 1 Tennis champion Naomi Osaka, and two-time Australian Open champion Aryna Sabalenka will compete in the Dubai Dutyfree Tennis Championships, Khaleej Times reports. The World Tennis Association tour got underway on Sunday and will run until Saturday, 2 March. You can buy tickets for both the women’s WTA tournament and the men’s ATP here.

#2- UAE Innovates 2024 resumes in Sharjah, Fujairah and Ras Al Khaimah, before its final stop in Dubai this Thursday, reports state news agency Wam.

#3- The world’s largest F&B event, Gulfood 2024, returns to Dubai World Trade Centre: The event brings together suppliers, distributors, and chefs, to discuss the future of F&B. Gulfood 2024 opened its doors on Sunday, and concludes this Friday.

#4-The International Dialogue of Civilizations and Tolerance Conference is underway, and concludes tomorrow at the Abu Dhabi National Exhibition Centre.

HAPPENING THIS WEEK-

#1- CBUAE to hold AED 18.5 bn m-bill auction: The Central Bank of the UAE (CBUAE) will auction four m-bills worth up to AED 18.5 bn tomorrow, according to a statement (pdf). Three of the m-bills are tap issuances, and the four have tenors ranging from 28 to 266 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

#2- The two-day tech startup event Step Conference gets underway tomorrow at Dubai Internet City. The event promises the attendance of 400 startups, and hundreds of global tech investors, and will see several tracks, including digital, fintech, wellness, earth, and AI.

#3- The International Freight Forwarders Conference 2024 gets underway this Thursdayand wraps next Sunday, 24 February. The logistics event brings global freight forwarders to the Hyatt Hotel in Dubai.

#4-Taste of Dubai opens its doors this Friday. The four-day food festival will bring together 16 of the emirates’ best restaurants at Dubai Marina’s Skydive Dubai.

THE BIG STORY ABROAD-

One story is dominating the front pages of the global business press this morning: Two of the US’ biggest credit card lenders are getting married. Capital One is acquiring Discover Financial Services in a USD 35 bn all-stock transaction, it said in a statement overnight. The transaction will see Discover shareholders receiving 1.0192 shares in Capital One for every share in Discover, “representing a premium of 26.6% based on Discover’s closing price of USD 110.49 on February 16, 2024,” the statement said. The merged company will see Capital One shareholders holding 60% and Discover shareholders taking the remaining balance.

The story got plenty of ink:Bloomberg | Financial Times | Wall Street Journal | CNBC | Reuters

FROM THE POLITICAL SIDE OF THINGS- US plans to call for temporary Gaza ceasefire in UN resolution: After 230 days of Israel’s war on Gaza that has killed over 29k Palestinians — two-thirds of which are women and children — the US will now call for a temporary ceasefire. The US has reportedly put forth a UN Security Council draft resolution calling for a temporary ceasefire and warning against a ground incursion into Rafah — now the world’s most densely populated area hosting 1.5 mn people.

OVER IN TECH NEWS- US, EU, and UK are joining forces to launch an operation against Lockbit, the notorious ransomware gang that has launched cyberattacks against some of the world’s largest organizations.

CIRCLE YOUR CALENDAR-

The Berklee Abu Dhabi Music Summit will kick off on Saturday, 24 February, in Berklee College of Music’s Middle East outpost in Abu Dhabi. The two-day event — running under the theme “Your Music Your Business” — features workshops and sessions by XP Music Futures, Dolby, and Anghami, aiming to guide independent artists in developing their careers.

Dubai’s Ramadan Souq kicked off on Saturday and will run until9 March at Old Municipality Street in Bur Deira, Dubai Media Office said in a statement. The annual market offers Ramadan items and gadgets at competitive prices, alongside live entertainment. It opens everyday from 10am to 10pm.

The World Trade Organization’s Ministerial Conference is scheduled from Monday, 26 February, to Thursday, 29 February, in Abu Dhabi. Trade ministers are meeting “at a difficult conjuncture” this year, with factors like regional and eastern European geopolitical tensions and upcoming election threatening to hamper negotiations for global trade agreements, Reuters cites WTO Director-General Ngozi Okonjo-Iweala as telling reporters in Geneva.

The Investopia Summit will take place from Wednesday, 28 February, to Thursday, 29 February, in Abu Dhabi. The two-day event will run under the theme “Emerging Economic Frontiers: Investing in Fast-Growing Sectors in the New Economy,” gathering investors, government officials, and entrepreneurs to explore investments in strategic markets.

Mobility startups can pitch their ideas for sustainable transportation solutions at Dubai’s Roads and Transport Authority’s Startups Challenge, held concurrently with UAE Innovates, starting February 26. You can register for the challenge by sending a nomination request here.

The MENA Transport Congress and Exhibition 2024 is set to take place from 28 February to 1 March at the Dubai World Trade Centre. Look for 2k attendees and 65 speakers, including industry leaders, researchers, and government officials to be in attendance.

DIFC is marking its 20th anniversary with a series of finance-focused events — 20 Days of Finance — running from 29 April to 29 May, including seminars, workshops, and networking sessions. The lineup includes the Dubai World Ins. Congress from 29-30 April, the Dubai FinTech Summit from 6-7 May, and the first Hedge Fund Managers’ Summit on 15 May. The Institute of International Finance will also participate with the Institute of International Finance MENA Chief Risk Officer Forum on 21 May.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.