It is estimated that cyber crime could cost the world as much as $6 trillion in 2021. AFP / Timothy A. Clary
It is estimated that cyber crime could cost the world as much as $6 trillion in 2021. AFP / Timothy A. Clary
It is estimated that cyber crime could cost the world as much as $6 trillion in 2021. AFP / Timothy A. Clary
It is estimated that cyber crime could cost the world as much as $6 trillion in 2021. AFP / Timothy A. Clary

The Middle East is hacking its way to cyber security


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At first glance, Marshal Webb might seem an unlikely public servant. Ten years ago, the American computer whizz was part of Lulz Security, a famous network of hackers. The group claimed responsibility for a number of attacks on private and public sector bodies, including a breach in 2011 of tech giant Sony, which stole the details of 100 million PlayStation users.

A decade on, Mr Webb is hitting government targets – the US Air Force, the Pentagon and, most recently, Dubai Police. His motivations, however, have changed for the better. Mr Webb now runs the US-based Path Network, a cybersecurity consultancy that specialises in finding flaws in an organisation's computer systems. He is now on the side of his former victims.
Mr Webb's hack on Dubai Police took place live on stage at this month's Gulf Information Security Expo and Conference (Gisec). The theme of this year's meeting was "Enabling Resilience in Digital Economies", a topic that could hardly be more relevant as a number of Mena countries continue to reap the rewards of digitisation in government services and the private sector. In some Gulf countries, citizens and residents are now able to access government services, apply for visas, access health records and pay fines not from official buildings, but from their smartphones.

The 8th edition of Gisec took place in the UAE at the beginning of the month. EPA
The 8th edition of Gisec took place in the UAE at the beginning of the month. EPA
Dubai Police registered 25,000 e-crimes last year

Government digitisation strategies have been around for years, but international leaders in the field enjoyed unexpected benefits during the pandemic, when access to physical spaces was limited. The logistical flexibility of modern, cyber-integrated healthcare systems has been a factor behind the world-leading vaccination campaigns of countries such as Israel, the UAE and the UK.

But new solutions bring new risks. The cost of security breaches can be staggering. The research group Cybersecurity Ventures predicts that crimes committed in cyberspace could cost the world about $6 trillion in 2021, a figure it suggests could grow by 15 per cent annually. And as digital currencies increasingly become a feature of modern life, criminals now have a dangerously anonymous means of extorting money.

Attacks can also endanger lives. In February, hackers gained access to the systems of a water treatment plant in Florida, temporarily altering the chemical content of water in the area.

And the personal costs of sensitive information being breached is a threat to all of us, not just governments and companies. Closer to home, Dubai Police registered 25,000 e-crimes last year, up by 11,000 compared to 2019.

Nonetheless, statistics as worrying as these must be put into context. Digitisation is still making our lives more efficient, easier and safer, and on balance brings more benefit than danger. Risk assessment, even before the rise of digitisation, has always been an integral part of government policymaking. Today, it is simply modernising, throwing up surprising quirks along the way, such as the once unlikely, but now vital contribution of hackers like Mr Webb.

Abu Dhabi GP schedule

Friday: First practice - 1pm; Second practice - 5pm

Saturday: Final practice - 2pm; Qualifying - 5pm

Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm

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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

The biog

Full name: Aisha Abdulqader Saeed

Age: 34

Emirate: Dubai

Favourite quote: "No one has ever become poor by giving"

Match info

Uefa Champions League Group B

Tottenham Hotspur 1 (Eriksen 80')
Inter Milan 0

Defending champions

World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack

Terminal High Altitude Area Defense (THAAD)

What is THAAD?

It is considered to be the US' most superior missile defence system.

Production:

It was first created in 2008.

Speed:

THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.

Abilities:

THAAD is designed to take out projectiles, namely ballistic missiles, as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".

Purpose:

To protect high-value strategic sites, such as airfields or population centres.

Range:

THAAD can target projectiles both inside and outside of the Earth's atmosphere, at an altitude of 93 miles above the Earth's surface.

Creators:

Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.

UAE and THAAD:

In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then deployed them in 2016, becoming the first Gulf country to do so.

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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UAE currency: the story behind the money in your pockets
Match info

What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm