The head of MI5 told a security summit in the US on Tuesday that Iranian-backed terror attacks in the UK are possible during the war in Israel.
It is the first time Ken McCallum, the security service’s director general, addressed the conflict.
Mr McCallum was speaking at a meeting attended by intelligence chiefs from the US, Canada, Australia and New Zealand.
The “monstrous attacks” on Israel could increase the risk of terror atrocities in the UK and raised concerns about the threat from Iran, he said.
Mr McCallum said the regime already posed a “particularly intensive” threat but may now “move into new directions”.
“We have obviously been concerned about Iran’s behaviour in the UK for a long time,” he said.
“In particular, the last 18 months or so have been a particularly intensive phase of Iran-generated threat on UK soil.
“Plainly, events in the Middle East sharpen the possibility that Iran might decide to move into new directions.
“I wouldn’t rule out the possibility that could include the UK, but we are already operating at a high level of Iran-generated threat.
“For the most part, the activity we’ve seen backed by Iran in the UK for the last 18 months or so has been targeted at the regime’s own internal enemies, dissidents, Farsi media organisations. Not exclusively, but predominantly.
“Clearly, one of the things on our minds is, might the Iranian targeting intent shift in response to events elsewhere.”
Mr McCallum also warned businesses to protect themselves against Chinese hackers amid a “sharp rise” in aggressive action by foreign powers.
Those involved in new technology such as artificial intelligence, quantum computing and synthetic biology are being told to take action to protect their intellectual property.
As well as cyber security, companies are being warned to be aware of new investors if they are not sure where their money has come from.
Entrepreneurs can end up signing contracts that see their intellectual property taken offshore and lost for good.
Intelligence services across the Five Eyes alliance – the UK, US, Canada, Australia and New Zealand – are all issuing similar advice, particularly to start-up businesses in emerging technologies.
“Across all five of our countries we are seeing a sharp rise in aggressive attempts by other states to steal competitive advantage," Mr McCallum said.
“This contest is particularly acute on emerging technologies. States which lead the way in areas like artificial intelligence, quantum computing and synthetic biology will have the power to shape all our futures.
“We all need to be aware, and respond, before it’s too late.”
Mr McCallum on Tuesday appeared onstage with the other heads of the Five Eyes intelligence services in public for the first time, at an event hosted by the Hoover Institution at Stanford University and the FBI.
“There is no greater threat to innovation than the Chinese government," FBI director Christopher Wray said at a panel to open the summit.
"And it is a measure of how seriously the five of us and our services take that threat that we have chosen to come together to try to highlight that, raise awareness, raise resilience and work closely with the private sector to try to build better protection for innovation, especially in a place like northern California but really across all five of our countries."
Guidance has been drawn up by the protective security arm of MI5 and part of GCHQ, which will be made available for businesses in the UK.
It covers areas including investments, supply chains, travel, IT networks and cloud computing.
While there is also concern about countries including Russia and Iran, the main warnings are focused on China.
The number of investigations by the UK intelligence service into Chinese activity of concern rose seven times between 2018 and 2022.
Last summer in a rare public appearance with Mr Wray, Mr McCallum revealed that the UK had shared intelligence about Chinese cyber threats with 37 countries in the past year, and disrupted a “sophisticated threat” against aerospace companies.
Examples of interference by the Chinese government included a British aviation expert who was paid for technical information on military aircraft by a company that turned out to be a front for China’s intelligence service.
In another case, engineering firm Smith’s Harlow was forced into administration in 2020 after it entered into a deal with a Chinese company that abandoned the partnership after the UK firm company shared vital technology.
There are also investigations into possible Chinese influence in the UK parliament.
In September it emerged that a parliamentary researcher had been arrested on suspicion of spying for China.
And in a separate case in 2022, MI5 warned MPs that a suspected Chinese spy named Christine Lee had allegedly engaged in “political interference activities” on behalf of China’s ruling communist regime.
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About Proto21
Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group
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.”
UAE currency: the story behind the money in your pockets
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Steve Smith (capt), David Warner, Cameron Bancroft, Jackson Bird, Pat Cummins, Peter Handscomb, Josh Hazlewood, Usman Khawaja, Nathan Lyon, Shaun Marsh, Tim Paine, Chadd Sayers, Mitchell Starc.
The Gandhi Murder
- 71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
- 34 - Nationalities featured in the film The Gandhi Murder
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The specs
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The specs: 2019 Lincoln MKC
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Dubai World Cup nominations
UAE: Thunder Snow/Saeed bin Suroor (trainer), North America/Satish Seemar, Drafted/Doug Watson, New Trails/Ahmad bin Harmash, Capezzano, Gronkowski, Axelrod, all trained by Salem bin Ghadayer
USA: Seeking The Soul/Dallas Stewart, Imperial Hunt/Luis Carvajal Jr, Audible/Todd Pletcher, Roy H/Peter Miller, Yoshida/William Mott, Promises Fulfilled/Dale Romans, Gunnevera/Antonio Sano, XY Jet/Jorge Navarro, Pavel/Doug O’Neill, Switzerland/Steve Asmussen.
Japan: Matera Sky/Hideyuki Mori, KT Brace/Haruki Sugiyama. Bahrain: Nine Below Zero/Fawzi Nass. Ireland: Tato Key/David Marnane. Hong Kong: Fight Hero/Me Tsui. South Korea: Dolkong/Simon Foster.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Fixtures:
Wed Aug 29 – Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30 - UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1 - UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2 – Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4 - Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6 – Final