Davos organizer WEF warns of growing risk of cyberattacks in Gulf

The World Economic Forum (WEF) has warned of the growing possibility of cyberattacks in the Gulf — with Saudi Arabia, the UAE and Qatar particularly vulnerable. (Shutterstock)
Updated 16 January 2019
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Davos organizer WEF warns of growing risk of cyberattacks in Gulf

  • Critical infrastructure such as power centers and water plants at particular risk, says expert
  • Report finds that unemployment is a major concern in Bahrain, Egypt, Morocco, Oman and Tunisia

LONDON: The World Economic Forum (WEF) has warned of the growing possibility of cyberattacks in the Gulf — with Saudi Arabia, the UAE and Qatar particularly vulnerable.

Cyberattacks were ranked as the second most important risk — after an “energy shock” — in the three Gulf states, according to the WEF’s flagship Global Risks Report 2019.

The report was released ahead of the WEF’s annual forum in Davos, Switzerland, which starts on Tuesday.

In an interview with Arab News, John Drzik, president of global risk and digital at professional services firm Marsh & McLennan said: “The risk of cyberattacks on critical infrastructure such as power centers and water plants is moving up the agenda in the Middle East, and in the Gulf in particular.”

Drzik was speaking on the sidelines of a London summit where WEF unveiled the report, which was compiled in partnership with Marsh and Zurich Insurance.

“Cyberattacks are a growing concern as the regional economy becomes more sophisticated,” he said.

“Critical infrastructure means centers where disablement could affect an entire society — for instance an attack on an electric grid.”

Countries needed to “upgrade to reflect the change in the cyber risk environment,” he added.

The WEF report incorporated the results of a survey taken from about 1,000 experts and decision makers.

The top three risks for the Middle East and Africa as a whole were found to be an energy price shock, unemployment or underemployment, and terrorist attacks.

Worries about an oil price shock were said to be particularly pronounced in countries where government spending was rising, said WEF. This group includes Saudi Arabia, which the IMF estimated in May 2018 had seen its fiscal breakeven price for oil — that is, the price required to balance the national budget — rise to $88 a barrel, 26 percent above the IMF’s October 2017 estimate, and also higher than the country’s medium-term oil-price target of $70–$80.

But that disclosure needed to be balanced with the fact that risk of “fiscal crises” dropped sharply in the WEF survey rankings, from first position last year to fifth in 2018.

The report said: “Oil prices increased substantially between our 2017 and 2018 surveys, from around $50 to $75. This represents a significant fillip for the fiscal position of the region’s oil producers, with the IMF estimating that each $10 increase in oil prices should feed through to an improvement on the fiscal balance of 3 percentage points of GDP.”

At national level, this risk of “unemployment and underemployment” ranked highly in Bahrain, Egypt, Morocco, Oman and Tunisia.
“Unemployment is a pressing issue in the region, particularly for the rapidly expanding young population: Youth unemployment averages around 25 percent and is close to 50 percent in Oman,” said the report.

Other countries attaching high prominence to domestic and regional fractures in the survey were Tunisia, with “profound
social instability” ranked first, and Algeria, where respondents ranked “failure of regional and global governance” first.

Looking at the global picture, WEF warned that weakened international co-operation was damaging the collective will to confront key issues such as climate change and environmental degradation.


Huawei’s founder says world can’t live without it

Updated 1 min 26 sec ago
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Huawei’s founder says world can’t live without it

BEIJING: The founder of Chinese telecom giant Huawei has hit back at US efforts to blacklist the company, saying defiantly that the world cannot do without Huawei and its “more advanced” technology.
“There’s no way the US can crush us,” Ren Zhengfei said in an interview with the BBC.
“The world cannot leave us because we are more advanced.”
Ren, 74, also denounced as “politically motivated” the December arrest of his daughter, Huawei Chief Financial Officer Meng Wanzhou, who is accused of violating US sanctions against Iran.
“We object to this,” he said.
“But now that we’ve gone down this path, we’ll let the courts settle it.”
The normally media-shy Huawei founder has been forced to step into the limelight in recent months as the company has come under increasing pressure over espionage concerns and the US-led campaign to persuade other countries to ban its technology.
Last year, security concerns prompted Australia to ban Huawei equipment from its future 5G network.
New Zealand has also blocked its largest telecom carrier from using Huawei technology for the next generation network, while the Czech Republic has reportedly excluded it from a 20-million-euro ($22 million) tender to build a tax portal.
US prosecutors also are charging Huawei with stealing trade secrets, saying it offered rewards to employees for stealing technology from other rivals.
Ren shrugged off the growing pressure.
“If the lights go out in the West, the East will still shine,” he said. “America doesn’t represent the world.”
“Even if they persuade more countries not to use us temporarily, we can always downsize and become smaller.”