Internet services have been disrupted several times in recent years because of damage to undersea cables. Getty Images
Internet services have been disrupted several times in recent years because of damage to undersea cables. Getty Images
Internet services have been disrupted several times in recent years because of damage to undersea cables. Getty Images
Internet services have been disrupted several times in recent years because of damage to undersea cables. Getty Images

US State Department 'closely monitoring' Red Sea internet cable cuts


Cody Combs
  • English
  • Arabic

The US State Department said on Monday that it is “closely monitoring” the situation after severed cables in the Red Sea significantly slowed internet speeds in parts of the Middle East, India and Pakistan at the weekend.

A State Department representative told The National that the US is acutely aware of the vital importance of undersea cables for commerce, communications and security around the world.

As of Sunday evening connectivity had improved but, for much of Saturday, users in countries including the UAE and Saudi Arabia reported connectivity had slowed to a crawl.

For some in the region speeds have not yet returned to normal and experts warn it could stay that way for up to six weeks owing to the complexities with repairing cable repairs under water.

Even if accidental, identifying what or who severed the cables could prove difficult, with ships using false GPS positioning to avoid being attacked.

Although there is no indication the severed cables were the result of an attack, it has long been feared that underwater cables could become targets.

Recent turmoil in the Middle East has increased those fears. In the Red Sea, a critical telecoms route, it has been feared that Yemen’s Houthi rebels might try to cut cables, although the Iran-backed group has previously denied carrying out such acts.

But many occurrences of severed cables in recent years have been accidents, caused by anchors dropped by ships or debris dragged by vessels.

For large companies that depend on reliable internet, cable damage can be costly.

Technology giant Microsoft, which was one of the first to report slow internet speeds throughout the Middle East at the weekend, said it maintained network traffic by rerouting it through alternative network paths for its Azure cloud computing business.

Microsoft said it rerouted traffic through alternative network paths for its Azure cloud computing. Cody Combs / The National
Microsoft said it rerouted traffic through alternative network paths for its Azure cloud computing. Cody Combs / The National

“We do expect higher latency on some traffic that previously traversed through the Middle East … Network traffic that does not traverse through the Middle East is not impacted,” Microsoft said.

Meanwhile, technology companies such as Cloudera, which calls itself a “hybrid data platform”, said lessons should be learnt from the Red Sea cable cuts.

“An hour of internet outage can cost millions in banking, retail and aviation,” the company said. It added that businesses should “now invest in data platforms that reroute and adapt instantly”.

Countries such as the UAE, Saudi Arabia, India and Pakistan were among those affected by severed data cables in the Red Sea. Photo: Netblocks
Countries such as the UAE, Saudi Arabia, India and Pakistan were among those affected by severed data cables in the Red Sea. Photo: Netblocks

But for average users, even with alternative routes, cut cables can still cause problems. When the internet services that rely on the cables were put under pressure, users flocked to 5G, which in turn strained those services.

In March 2024, at least three subsea cables were cut, affecting internet traffic in Europe, the Middle East and parts of Asia. The US government found that the anchor from the Rubymar, a ship the Houthis had critically damaged, had dragged along the seabed and cut the cables.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Founded: 2018

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Sector: Startups

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Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020

Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.

The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020. 

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Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

Updated: September 09, 2025, 6:08 AM