Russia poses a “very real and present threat” to the UK’s vast web of undersea cables, interconnectors and pipelines, a former Royal Navy chief told the British Parliament on Tuesday.
Cables crucial to communication systems around the world are potentially vulnerable to hostile activity, which could cause “major damage to our nation”, including cutting financial activity of up to £7.4 trillion ($9.2 trillion) per day, Lord West of Spithead said.
The warning comes amid reports of increased Russian submarine activity thought to be involved in cable-mapping in preparation for war with Nato. Attacking this infrastructure could help President Vladimir Putin inflict maximum damage.
“The actions and statements of President Putin would seem to indicate that he actually already considers that he is at war with this country and the West, if you just look at the raft of things he has done,” the former head of the Royal Navy told the House of Lords.
“There is no doubt that the Soviet Union, when it existed, was very interested in what was going on under the sea — and Russia today is probably even more interested in what is going on under the sea.
“If we stopped those cables working, £7.4 trillion worth of financial activity each day would be cut, 25 per cent of our electricity would go and so on and so on.
“We put in place a National Maritime Information Centre in about 2010 and we needed a Joint Maritime Operations Co-ordination Centre alongside it, because we said very firmly we have to take threats to our territorial seas and exclusive economic zone very, very seriously.
“They are now in place, which is good, but they need to be really reinforced and the departments involved need to fully man them, because otherwise we are not going to be able to counter what is a very real and present threat and could cause major damage to our nation.”
Ukraine and Russia conflict latest — in pictures
Defence Minister Baroness Goudie assured Lord West that the government considers these cables “critical to our national infrastructure” and that their security is taken “very seriously”.
“The MoD [Ministry of Defence] in the UK operates a very effective surveillance programme — we have aerial surveillance out over the North Sea and the High North, we have submarine activity and, of course, we shall be assisted by the MROS [Multi-Role Ocean Surveillance] addition to that fleet,” she said.
One MROS ship, set to be operational by the summer, is the first of two that will act as subsea protection ships.
The 98-metre-long, adaptable offshore patrol vessel will be dedicated to safeguarding seabed telecoms cables and oil and gas pipelines.
This MROS is currently being refurbished in Merseyside, while the second ship is currently in the concept stage.
“I in no way disagree with [Lord West’s] final conclusion and that is recognised across government, which of course is why a number of government departments all have a role to play in protecting that critical national infrastructure,” Baroness Goudie added.
“Certainly we regard these installations as essential to our national infrastructure and we monitor a variety of risks they face.
“One of the things we do — because predominantly these subsea cables are owned privately and operated by private owners — but key departments work closely with them and, of course, supporting that is the National Risk Register, the National Protective Security Authority, the National Cyber and Security Centre.
“So there is a very comprehensive framework to support the private owners and operators of these cables and, of course, the MoD discharges a critical role in monitoring threats.”
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.”
Pots for the Asian Qualifiers
Pot 1: Iran, Japan, South Korea, Australia, Qatar, United Arab Emirates, Saudi Arabia, China
Pot 2: Iraq, Uzbekistan, Syria, Oman, Lebanon, Kyrgyz Republic, Vietnam, Jordan
Pot 3: Palestine, India, Bahrain, Thailand, Tajikistan, North Korea, Chinese Taipei, Philippines
Pot 4: Turkmenistan, Myanmar, Hong Kong, Yemen, Afghanistan, Maldives, Kuwait, Malaysia
Pot 5: Indonesia, Singapore, Nepal, Cambodia, Bangladesh, Mongolia, Guam, Macau/Sri Lanka
The specs: 2018 Jeep Grand Cherokee Trackhawk
Price, base: Dh399,999
Engine: Supercharged 6.2-litre V8
Gearbox: Eight-speed automatic
Power: 707hp @ 6,000rpm
Torque: 875Nm @ 4,800rpm
Fuel economy, combined: 16.8L / 100km (estimate)
Company%20profile
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Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
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COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Schedule for show courts
Centre Court - from 4pm UAE time
Johanna Konta (6) v Donna Vekic
Andy Murray (1) v Dustin Brown
Rafael Nadal (4) v Donald Young
Court 1 - from 4pm UAE time
Kei Nishikori (9) v Sergiy Stakhovsky
Qiang Wang v Venus Williams (10)
Beatriz Haddad Maia v Simona Halep (2)
Court 2 - from 2.30pm
Heather Watson v Anastasija Sevastova (18)
Jo-Wilfried Tsonga (12) v Simone Bolelli
Florian Mayer v Marin Cilic (7)
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
MATCH INFO
Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')
Leeds United 0
TOURNAMENT INFO
Fixtures
Sunday January 5 - Oman v UAE
Monday January 6 - UAE v Namibia
Wednesday January 8 - Oman v Namibia
Thursday January 9 - Oman v UAE
Saturday January 11 - UAE v Namibia
Sunday January 12 – Oman v Namibia
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Mohammed Usman, CP Rizwan, Waheed Ahmed, Zawar Farid, Darius D’Silva, Karthik Meiyappan, Jonathan Figy, Vriitya Aravind, Zahoor Khan, Junaid Siddique, Basil Hameed, Chirag Suri
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5