In the third quarter of 2022, the UAE saw the largest individual year-on-year increase in cyberattacks – by 151 per cent, compared to a 28 per cent increase globally, according to research. Attackers clearly have their eye on UAE companies, highlighting the importance of implementing robust cybersecurity strategies.
But in order to do so effectively, organisations must understand and anticipate the shifts in the regional cybersecurity landscape and safeguard themselves accordingly. In this regard there are some key trends that companies must take note of to stay safe.
The rising role of AI in the cyber realm, for one, is full of opportunity, but it also comes with increased risks. In 2023, we will probably see more instances of threat actors utilising sophisticated phishing techniques and combining them with AI to target and attack users in a more intelligent manner. According to some reports, phishing attacks in the UAE grew by 230 per cent in the second quarter of 2022. This is a threat that companies in the country – and in the wider region – need to keep an eye on.
The increasing sophistication of cyberattacks is a worrying trend, but applications are simultaneously evolving to address these threats
AI has changed the phishing game, enabling attackers to leverage features such as natural language processing to create well-written, convincing phishing emails that are difficult to identify. Data shows that chatbot systems such as ChatGPT can be misused by attackers to craft phishing emails and codes. Additionally, by combining AI with databases of breached information found on the dark web, attackers can deliver more targeted and sophisticated phishing campaigns.
The evolution of regulations and compliance laws will affect the way companies approach data management, especially as governments across the region implement their own data privacy laws, including those of the UAE, Saudi Arabia and Oman. As more regulation is implemented locally, IT teams and organisations more broadly will start to change how they think about data collection and storage.
Many organisations view the data they collect as a resource that they can harvest and store without consequence. This may well change as organisations understand that some data they collect may have a liability associated with it, and hence, will need to review and update their data practices to ensure they are processing data in a lawful and ethical way.
That is where cybersecurity service providers would come in to address and manage data security and compliance for their clients, enabling them to focus on their core business.
In 2023, we could witness more supply chain attacks targeting software suppliers and developers. A number of attacks have already targeted widely used messaging and email applications that are used in many organisations.
The way we design, develop and operate software makes the electronic supply chain of code much more vulnerable. Most software is now developed through a modular approach, meaning that the software is essentially a patchwork of functionality, sourced from libraries available to the developer. The benefit of this is that we have become extremely efficient at delivering rich functionalities in our software quickly. Unfortunately, this approach also means that organisations don’t control their code base to the same extent any more, and the effect of a single vulnerability in a function can further affect many systems. This was seen with some of the crypto libraries, in which the very fabric of the internet was affected.
To avoid this, organisations can work with a cybersecurity service provider, who can study the organisation’s information and communication technologies pipeline to understand what kind of software libraries their vendors utilise, and whether those libraries could potentially be compromised. From there, the service provider can conduct a risk assessment to establish where the organisation stands in terms of software integrity, and act accordingly.
The number of Distributed Denial of Service (DDoS) attacks observed in the third quarter last year in the UAE is almost equivalent to the entire volume of such attacks recorded in the first half of last year. DDoS attack numbers grew by more than 79 per cent in the third quarter, compared to the second quarter of 2022, according to Help AG’s Q3/Q4 Threats & Vulnerabilities Report 2022. This year, DDoS attacks will likely rise in frequency, volume and complexity, in the sense that attackers are highly competent and have a good understanding of how protection systems function. This would enable them to potentially execute attacks under the radar, by constantly retooling attacks to bypass these set protection mechanisms.
In order to effectively mitigate DDoS attacks, companies must have a solid understanding of how their systems will react to such an attack. With the ever-evolving digital transformation requirements, DDoS mitigation solutions would need to continuously upgrade policies and technologies coupled with real-time insights. Service providers have been and will remain the best bet for businesses to deal with these varying attack trends, through services such as DDoS simulation testing that will enable IT teams to assess the resilience of their systems by staging a controlled attack.
The increasing sophistication of cyberattacks is certainly a worrying trend, but cybersecurity applications are simultaneously evolving to address these threats.
The future of cybersecurity will be service-centric, with 90 per cent of cybersecurity requirements expected to be fulfilled through a service model by 2025.
We will see more organisations make the shift to cybersecurity-as-a-service in 2023, partnering with specialist-managed service providers to gain access to expertise and latest technologies, as service providers continuously invest in technologies, knowledge and talent.
Cybersecurity is the crucial component of successful digital transformation and needs to be built in from day zero. As attackers evolve their methods to bypass security measures, often by abusing emerging technologies such as AI, it is crucial for organisations to arm themselves with awareness, and partner with security services providers to increase their cyber resilience.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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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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'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
MATCH INFO
Norwich 0
Watford 2 (Deulofeu 2', Gray 52')
Red card: Christian Kabasele (WatforD)
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Infobox
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain
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if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5