Undersea cables are 'inadequately protected and highly vulnerable to attack', a report by UK think tank Policy Exchange warns. Reuters
Undersea cables are 'inadequately protected and highly vulnerable to attack', a report by UK think tank Policy Exchange warns. Reuters
Undersea cables are 'inadequately protected and highly vulnerable to attack', a report by UK think tank Policy Exchange warns. Reuters
Undersea cables are 'inadequately protected and highly vulnerable to attack', a report by UK think tank Policy Exchange warns. Reuters

Britain's undersea cables vulnerable to attack


Matthew Davies
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Britain's critical undersea cable infrastructure needs an urgent defence upgrade with regular sightings of suspicious Russian activity in nearby waters and mysterious cable-cutting incidents posing severe threats.

A report from the Policy Exchange said thousands of miles of undersea fibre-optic cables, which are the "unseen arteries of global communication", are a "critical asset and a valuable target" as geopolitical tensions rise.

The report advocates for a ‘space-to-seabed’ strategic doctrine which will bring government and relevant private sector stakeholders together to protect Britain's undersea assets.

"Undersea cables are now as important to the international economy as open trade routes," said Michael Fallon, a former UK defence secretary.

"They underpin our financial systems, data exchanges and energy supplies. Britain’s economy and security are heavily dependent on its subsea connections with North America, Europe and the Middle and Far East.

"These are valuable targets for our global competitors: we have already seen Russian attempts to interfere with Atlantic cables.

"Countries like China are ahead of us in using sensors and unmanned vessels to protect their own networks. By sounding the alarm over our extreme vulnerability, this compelling report demands that the government urgently adopt a robust strategic response across multiple theatres.”

Russia's Belgorod nuclear-powered submarine carries mini-subs that can be used to damage undersea cables. Getty
Russia's Belgorod nuclear-powered submarine carries mini-subs that can be used to damage undersea cables. Getty

Middle East cable threat

The report points out the risk to undersea cables that exists in other areas of the globe as well, particularly in the Middle East.

"The proximity of the narrow and shallow waters to Iranian shores lays bare the extreme vulnerability of cables passing through this volatile region," it said.

"The Iran-backed Houthis' assault on global maritime shipping has already demonstrated the ease with which our adversaries can wreak havoc on the water’s surface; there are growing concerns that they might also start doing so below it."

The report claims the only factor holding Iran back from attacking undersea cables in its vicinity is the fact that it relies heavily on them. But should a war arise that threatens the regime's survival, internecine Iranian attacks on cables would "become entirely plausible."

Suspicious incidents

The Policy Exchange also points out that the vast areas involved in monitoring and protecting undersea cables necessitates a new and comprehensive strategy.

"As a belligerent Russia, and disruptive China and Iran, develop the capabilities to conduct subthreshold undersea warfare, the UK and its allies must not be caught flat-footed, and unable to deter and disrupt aggression against our critical maritime infrastructure along the seabed," the report said.

The Policy Exchange claims that in the past few years there have been eight unattributed yet suspicious cable-cutting incidents in the Atlantic, and more than 70 publicised sightings of Russian vessels behaving "abnormally near critical maritime infrastructure".

The report points to incidents of cable-cutting where Russian ships have been reported in the vicinity, such as near the Shetland Islands in 2022.

The Russian research ship Yantar, docked in Buenos Aires, Argentina. According to a Russian TV channel, the ship can not only connect to top-secret cables but also cut them and "jam underwater sensors with a special system", Gonzalo Mórtola via AP
The Russian research ship Yantar, docked in Buenos Aires, Argentina. According to a Russian TV channel, the ship can not only connect to top-secret cables but also cut them and "jam underwater sensors with a special system", Gonzalo Mórtola via AP

An expansion of the Royal Navy's Multi-Role Ocean Surveillance Ship (Mross) programme is seen as crucial. At the moment, the first of the UK's Mross programme’s two surface vessels, RFA Proteus, has yet to finish its operational training at sea. The Policy Exchange points out that many more vessels will be needed, "given the existence of multiple high-threat areas requiring constant monitoring in our waters and further afield".

In addition to expanding the Mross programme, the Policy Exchange is urging the government to deploy more sensors to monitor the undersea cables, as well as unmanned surveillance vessels.

In essence, the Policy Exchange is warning the government to take the issue of undersea cable vulnerability more seriously, because of the dire consequences for the UK's financial sector and economy in the event of a serious attack.

It's hoped the report will not fall on deaf ears: Prime Minister Rishi Sunak – then a back bench MP – contributed to a similar one seven years ago.

British strategic interests are tied up with the whole global undersea cable infrastructure, said Air Chief Marshal Lord Peach, former Chief of the Defence Staff and former Chairman of the Nato Military Committee.

“Regular sightings of suspicious Russian activity in nearby waters, mysterious cable-cutting incidents, and the growing concern amongst our friends and allies about undersea infrastructure vulnerabilities, all signal that we have arrived in a new era of undersea warfare," he added.

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Engine: 5-litre V8

Transmission: Eight-speed auto

Power: 520hp

Torque: 625Nm

Fuel economy, combined: 12.8L/100km

The years Ramadan fell in May

1987

1954

1921

1888

RESULT

Esperance de Tunis 1 Guadalajara 1 
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

States of Passion by Nihad Sirees,
Pushkin Press

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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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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Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Updated: February 23, 2024, 10:22 AM