Middle East ranks 2nd in data breach losses after the US, IBM study finds

Middle East ranks 2nd in data breach losses after the US, IBM study finds
Businesses today look different from what they were 10 years ago, with digital operations becoming essential year after year. (File)
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Updated 22 August 2022

Middle East ranks 2nd in data breach losses after the US, IBM study finds

Middle East ranks 2nd in data breach losses after the US, IBM study finds
  • The average cost of data breach for the region went up by 7.6%

RIYADH: The Middle East ranked second on the list of data breach losses after the US, IBM Security’s annual Cost of a Data Breach Report has revealed.

The study is based on an in-depth analysis of real-world data breaches experienced by 550 organizations worldwide.

“The consequence of this is that businesses not only need to worry about safeguarding the security and privacy of their data but also ensure they are cyber resilient,” IBM consulting leader for Saudi Arabia, Dina Abo-Onoq, told Arab News.

The report shows that the Middle East registered an average total data breach cost of $7.45 million between March 2021 and March 2022, a 7.6 percent increase over $6.93 million booked over the same period in the earlier year.

Business process transformation

Businesses today look different from what they were 10 years ago, with digital operations becoming essential year after year, simplifying the workflow and accelerating the business pace.

However, IT environments have become broader and more complex.

“That complexity creates risks and can introduce various cyber threats,” said Abo-Onoq.

The financial sector was among the most affected sectors by data breaches in the Middle East, followed by health and energy. 

FASTFACTS

• The study is based on an in-depth analysis of real-world data breaches experienced by 550 organizations worldwide.

• The financial sector was among the most affected sectors by data breaches in the Middle East, followed by health and energy.

As a result, organizations are raising their prices to cover the cost of data breaches by nearly 60 percent, making the consumers pay the difference for the goods and services they offer.

“Consumers always carry the burden,” she added.

The US tech multinational IBM has been preparing to combat these losses by offering a zero-trust strategy for its clients that manages the risks, allowing users access to the appropriate resources.

“It’s a model that uses context to securely connect the right users to the right data at the right time and under the right conditions while also protecting your organization from cyberthreats,” she added.

IBM’s Saudi presence

During US President Joe Biden’s recent visit to the Kingdom, IBM revealed that it would train 100,000 young people in artificial intelligence, machine learning and cybersecurity over the next five years.

The tech multinational will work closely with the Saudi Ministry of Communications and Information Technology to establish the Kingdom as an innovation hub in the region.

“We are committed to holding 100 workshops over the next five years with the government agencies,” Abo-Onoq added.

IBM first set foot in the Kingdom in 1947, when it installed the first computer at Saudi Aramco. The company has come a long way since then.

Its existing office in Riyadh not only serves as a sales and marketing facility but also provides technical resources, consultancy services and security expertise.

“We are proud to call ourselves the trusted partner for digital transformation, offering skills to help clients modernize and manage their applications in a hybrid cloud environment,” she explained.

The company also signed a memorandum of understanding with King Saud University last June to provide AI training for its students and to advance their development skills.

“What IBM does is to prepare them for the marketplace. We cannot provide jobs for everyone, but many of them end up working for IBM,” she said.


SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 
Updated 27 sec ago

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

RIYADH: The Saudi Central Bank has increased its interest rate by 25 basis points to 5.5 percent, echoing Wednesday’s move by the US Federal Reserve to curb inflation. 

A statement from the bank, also known as SAMA, noted its Reverse Repo rate has also increased to 5 percent.   

While inflation is still on the rise in the Kingdom, the annual rate eased to 3 percent in February, down from 3.4 percent the previous month.  

The Fed’s quarter-point interest rate hike follows months of larger increases, as it hiked 25 basis points in February, 50 basis points in December, and 75 basis points in November, September, July and June. 

While the US Central Bank’s decision was driven by its desire to lower high inflation, this played a part in driving the Gulf region’s monetary policy, as most of the region’s currencies are pegged to the dollar.  

Following the US Fed’s decision, regional central banks also swung into action to raise their interest rates.  

Furthermore, the UAE's central bank increased its base rate to 4.9 percent, effective on Thursday. 

Bahrain also raised its main rate by 25 basis points, with its one-week deposit facility rate rising to 5.75 percent, while the overnight deposit rate hit 5.5 percent.  

Qatar’s central bank, which had kept its rates unchanged last month, increased its lending and deposit rates to 5.75 percent and 5.25 percent respectively.  

Inflation in the GCC region is higher than it was in almost 10 years, but still lower than numerous western countries, ranging between 5 and 6 percent last year. 

Despite recent signs of a slow-down in the US economy, prices are running at their highest level since the early 1980s.  

Rising interest rates increase the cost of borrowing for consumers, leading to more expensive mortgage bills and loan repayments – something that can lead to reduced spending on other items as people try to reduce costs. 

However, savers benefit from the interest rates rise, with money stored away gaining a greater return. Yet, with inflation across the globe still running hot, any extra interest gained by savings is lower than the rising cost of goods and services.


Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output
Updated 25 min 24 sec ago

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

RIYADH: Oil prices fell on Thursday following three sessions of gains, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while US crude stocks rose more than expected.

Brent crude futures had fallen 42 cents, or 0.55 percent, to $76.27 a barrel at 11.00 a.m. Saudi time, while US West Texas Intermediate crude dropped 50 cents, or 0.71 percent, to $70.40.

Both crude benchmarks settled on Wednesday at their highest closes since March 14 after the dollar slid to a six-week low.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with “significant” implications for an economy that US central bank officials projected would slow even more this year than previously thought.

Meanwhile, US crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, the latest data from the Energy Information Administration showed.

US Crude inventories rose in the week to March 17 by 1.1 million barrels to 481.2 million barrels, the highest since May 2021. 

China plans to use renewable energy to help boost gas and oil output

China plans to use renewable energy sources such as wind and solar to provide onsite power for enhanced oil and gas recovery techniques, according to the National Energy Administration.

Gas output could be increased by 3 billion cubic meters through pressure-boosted mining techniques, the NEA said in an action plan for 2023-2025 issued late on Wednesday.

Crude oil production could be lifted by more than 2 million tons through renewable-powered carbon dioxide flooding and thermal recovery techniques, it added.

In addition to enhancing output at existing sites, the NEA proposed increased exploration of both onshore and offshore oil and gas that would also draw on renewable power sources.

The development of renewable-supported oil and gas facilities has particular potential in northern and western parts of the country such as Xinjiang, Gansu and Heilongjiang, it said.

The blueprint for an “integrated development” of renewable and conventional energy resources comes as Beijing increasingly stresses the country’s need for energy security, including a new emphasis on a continuing role for coal.

Despite a massive rollout of renewable power sources — renewables accounted for 76.2 percent of newly installed energy capacity last year — traditional fuel sources form the backbone of the country’s energy supply.

Coal power accounted for 56.2 percent of China’s energy consumption last year, while oil provided 17.9 percent and gas 8.5 percent, according to data from the National Bureau of Statistics.

The NEA also highlighted the importance of demand-side reforms, such as reducing power usage at peak times, as well as increasing energy storage and ‘smart grid’ systems.

Energean sees output of up to 158,000 boed this year

Eastern Mediterranean-focused gas producer Energean on Thursday forecast its 2023 output would reach 131,000-158,000 barrels of oil equivalent per day after the start-up of its flagship Israeli Karish field.

Karish, which uses a floating production, storage and offloading vessel, is set to deliver 4.5-5.5 billion cubic meters of gas to Israel this year, with Energean ramping up capacity to 8 bcm.

It expects its production to reach 200,000 boed by the second half of 2024.

Energean’s previous production stood at around 41,000 boed.

(With input from Reuters) 


Singapore-based carbon exchange CIX to launch nature-based contract

Singapore-based carbon exchange CIX to launch nature-based contract
Updated 33 min 11 sec ago

Singapore-based carbon exchange CIX to launch nature-based contract

Singapore-based carbon exchange CIX to launch nature-based contract

SINGAPORE: Carbon exchange Climate Impact X, known as CIX, said on Thursday it will launch a nature-based standardized contract, whose sale will give buyers credits and proceeds that are intended to be used to help save forests. 

NBS credits can be generated through schemes such as planting trees or protecting forests that could be destroyed to make way for development projects if no financial incentive is given to preserve them. Many polluting companies seek to use carbon offsets including NBS credits to compensate for pollution from their operations. 

Critics say offsets allow greenhouse gas emitters to continue polluting and don't materially contribute to reducing emissions. 

The contract CIX Nature X will trade under the contract code "CNX" on its spot trading platform, and eligible projects include rainforests and biodiversity reserves in Asia, Africa and South America, Singapore-based CIX said. 

CIX is a joint venture between banks DBS and Standard Chartered, Singapore Exchange and Singapore state investor Temasek Holdings. 

"In curating projects for contractual delivery into Nature X, CIX considers the size of a project by volume of issued and unretired credits," CIX said, adding recognition by market participants and rating agencies were also deciding factors. 

Projects eligible for the CNX contract include Kasigau Corridor REDD Project in Kenya, Rimba Raya Biodiversity Reserve Project in Indonesia and the Cordillera Azul National Park REDD Project in Peru. 

Each lot of CNX equates to 1,000 carbon credits, where each credit represents one tonne of reduced or avoided carbon dioxide from the verified projects, CIX said. 


Brent plunge fails to displace Russian crude for Asian buyers

Brent plunge fails to displace Russian crude for Asian buyers
Updated 23 March 2023

Brent plunge fails to displace Russian crude for Asian buyers

Brent plunge fails to displace Russian crude for Asian buyers
  • Middle East crude prices in Asia appear to be resilient as the market bets on robust demand from China
  • With Russian crude so cheap, a move of a few dollars on Brent-Dubai EFS or even freight would not make a difference

SINGAPORE/LONDON: A plunge in Brent crude prices has narrowed the spread between Atlantic Basin and Middle East benchmarks but has failed to spur interest from Asian refiners, which are instead buying up discounted Russian oil, leaving an overhang in African supply.
Global oil benchmark Brent tumbled more than 10 percent over the past two weeks, touching a 15-month-low of $70.12 a barrel on Monday, as investors have fretted over banking sector turmoil in the US and Europe and as strikes in France have dented oil demand.
Middle East crude prices in Asia appear to be resilient as the market bets on robust demand from China, which is rebounding from zero-COVID restrictions that formerly squeezed its economy.
The Brent-Dubai Exchange for Swaps (EFS), representing the premium of light sweet Brent over Middle East sour crude Dubai, shrank to $1.40 a barrel this week, its narrowest in more than two years.
A tighter EFS typically means Brent-linked crude produced in the Atlantic Basin, including from West African countries, becomes more economical for Asian buyers.

But traders have not seen a significant uptick in Asian demand for West African crude, because the cargoes remain much more expensive than Russian oil, even though they have gained competitiveness over Middle Eastern crude.
With Russian crude so cheap, a move of a few dollars on Brent-Dubai EFS or even freight would not make a difference, other than providing Chinese buyers with a tool to drive prices lower, said a West African crude trader.
Russia’s light sweet ESPO crude for May delivery is traded at a discount of about $6.80 a barrel against the ICE Brent on the deliver-ex-ship (DES) basis to northern China, trading sources said. Meanwhile, Congo’s Djeno, a medium sweet crude favored by Chinese refiners, is assessed at a premium of $1.50 a barrel above ICE Brent for May delivery on DES basis.
The pattern is similar in India, where Russian crude is delivered at discounts to Dubai quotes while West African oil is loaded at parity or a slight discount to dated Brent, an Indian trader said.
Russia became the top crude supplier to China and India in recent months, eroding the market share of other suppliers such as West African countries.
Just over 30 million barrels of West African crude have been loaded for Asia in March, the smallest volume since 2014 or earlier, shipping data from Refinitiv and Kpler showed.
The slowing exports of West African crude are exacerbating a supply overhang in the West of Suez market and weighing down the Brent prices that the West African grades are pegged to.
On Tuesday, about 20 million barrels of Nigerian crude for April loading were still unsold, just as the trade cycle for May cargoes was about to kick off. About four April-loading Angolan crude cargoes were also awaiting buyers.
In the past three months, Nigeria has exported around 42 million barrels of crude on average each month while Angola’s average monthly exports have been around 33 million barrels.


Oil up 1% to one-week high despite crude build

Oil up 1% to one-week high despite crude build
Updated 54 min 52 sec ago

Oil up 1% to one-week high despite crude build

Oil up 1% to one-week high despite crude build

NEW YORK: Oil prices rose about 1 percent to a one-week high on Wednesday despite a surprise weekly build in US crude inventories, as the dollar slid to a six-week low ahead of the Federal Reserve’s decision on interest rates which could affect the fuel demand outlook.

Brent futures rose 74 cents, or 1 percent, to $76.06 a barrel by 11:14 a.m. EDT (1514 GMT). US West Texas Intermediate crude rose 64 cents, or 0.9 percent, to $70.31. Each benchmarks was on track for the highest close since March 14.

The US dollar fell to its lowest level since Feb. 3 against a basket of other currencies, supporting oil demand by making crude cheaper for buyers using other currencies.

The US Energy Information Administration said crude stockpiles rose 1.1 million barrels during the week ended March 17. Analysts in a Reuters poll had forecast a 1.6-million barrel withdrawal. But the official data showed a smaller build than the 3.3-million barrel increase reported on Tuesday in industry data.

“The big story here is that build ... in crude, which is enough to get us to the 22-month high in crude oil storage. We just have a lot of crude oil in storage and it’s not going to go away anytime soon,” said Bob Yawger at Mizuho, a bank.

US crude stockpiles have grown during 12 of the past 13 weeks, boosting inventories to their highest since May 2021.

WTI and Brent prices last week fell to their lowest since 2021 on concern that banking sector turmoil could trigger a global recession and cut oil demand. An emergency rescue of Credit Suisse Group AG over the weekend helped revive oil prices.