Geopolitical instability is raising risk of ‘catastrophic cyberattack’: WEF study 

Special Geopolitical instability is raising risk of ‘catastrophic cyberattack’: WEF study 
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Updated 18 January 2023

Geopolitical instability is raising risk of ‘catastrophic cyberattack’: WEF study 

Geopolitical instability is raising risk of ‘catastrophic cyberattack’: WEF study 
  • “Global Cybersecurity Outlook 2023” report is based interviews with experts and executives
  • Majority of those surveyed warn a critical skills gap threatens societies and key infrastructure

DAVOS: The risk of catastrophic cyberattacks is soaring because of geopolitical instability, according to a report launched at the World Economic Forum’s annual meeting in Davos on Wednesday.

More than 93 percent of cybersecurity experts and 86 percent of business leaders, who were interviewed for the report, believe that “a far-reaching, catastrophic cyber event is likely in the next two years,” and that there is a critical skills gap threatening societies and key infrastructure.

The “Global Cybersecurity Outlook 2023” report is based on polls, workshops and interviews with more than 300 experts and senior executives. Half of the companies surveyed said the current landscape is making them reevaluate the countries in which they do business.

Despite challenges, organizations are improving cyber resilience, one of the key priorities of the WEF’s Centre for Cybersecurity.

The report said that awareness and preparation would help organizations balance the value of new technology against the cyber risk that comes with it.

It highlighted the need to address the shortage of talent and skilled experts. A significant 34 percent of cybersecurity experts said they lacked some skills in their team, while 14 percent said they lacked critical skills.

The problem is more pronounced in key sectors such as energy utilities, where nearly 25 percent of the cybersecurity experts surveyed said they lacked the necessary critical skills to protect their organizations’ operations.

Expanding the cybersecurity talent pool is needed to solve this problem, according to “Global Cybersecurity Outlook 2023,” which was written in collaboration with Accenture.

Several successful cybersecurity skills programs are underway around the world, but many have difficulty scaling to large numbers. Greater cross-industry collaboration and public-private partnerships are needed to overcome this challenge.

Geopolitics is reshaping the legal, regulatory and technological environment. “As global instability increases cyber risk, this report calls for a renewed focus on cooperation,” Jeremy Jurgens, managing director of the WEF, said.

“All stakeholders from public and private sectors who are responsible for our common digital infrastructure must work together to build security, resilience and trust.”

A WEF news release that accompanied the launch of “Global Cybersecurity Outlook 2023” highlighted the views of leading industry figures on a range of topics.

“The research shows that business leaders are now more aware of their organizations’ cyber risks. However, there is the need to go further to assessing and translating the business risk into actionable next steps across the entire organization,” Paolo Dal Cin, global lead of Accenture Security, said.

“Long-term cyber resilience requires a closely coordinated team effort across the C-suite to gain a clearer view of the cyber risks so security can be embedded in all strategic business priorities and protect the digital core. As our digitally connected world expands, now is the time to build cyber resilient businesses for customers, employees and supply chain partners.”

Commenting on the skills gap, Ken Xie, chairman of the board and CEO of Fortinet, said: “The threat landscape continues to expand and evolve with cyber adversaries targeting organizations of all sizes, locations and industries around the world.

“The disruption of operations or services and the compromise of data due to cyberattacks against the backdrop of a global skills gap places every individual, organization and even nation at risk. When we work together to encourage best practices we see greater progress in the fight against cybercrime.

“Shared data and trusted global partnerships can enable more effective responses and better predict future attack strategies to deter adversary efforts.”

Leaders are now more likely than one year ago to see data privacy laws and cybersecurity regulations as an effective tool for reducing cyber risks across a sector. But speed is clearly an issue.

On the question of regulation, Hoda Al-Khzaimi, director of the Center for Cybersecurity and founder and director of Emartsec at New York University, Abu Dhabi, said: “Standardization can take 18 months but a cyberattack takes seconds. The speed at which emerging technologies are implemented often outpaces our ability to build security measures around them. We need to go beyond simple compliance with regulations if organizations are to be cyber-resilient.”

Underscoring the importance of investing in cybersecurity, Nikesh Arora, CEO and chairman of Palo Alto Networks, said: “Cyberattackers don’t rest with macro-economic challenges, they double down on them. There is no path to success that is not heavily driven by AI and automation.

“As companies accelerate their digital transformation journeys, the time for reimagining and investing in cybersecurity architectures — intelligent platforms — is now. Boards and the C-suite must embrace a strategy whereby cybersecurity is deeply embedded across the enterprise from operations to innovation. Only then will organizations be able to create a state of resilience that enables, not inhibits, their strategic business outcomes.”

A lingering, vexing challenge is how to price cybersecurity, according to the “Global Cybersecurity Outlook 2023” report. It quoted one survey respondent as saying: “Board members are interested in risk, opportunities and investment in cost.

“We need to better respond to the question(s), What is the return? How do I know this is a good investment across the myriad of things that I could potentially be invested in? How can we improve at making effective metrics to help boards make better-informed decisions?”

Cybersecurity is also influencing strategic business decisions, with 50 percent of participants in the research saying that it was a consideration when they evaluated which countries in which to invest and do business.

Compared with last year, the report found that board-level executives are more likely to prioritize cyber risk and are more aware of their own role in addressing it. This has led to increased interaction with cybersecurity leaders, “cyber leaders, business leaders and boards of directors are now communicating more directly and more often.” The bad news is that they “continue to speak different languages.”

All too often, according to the report, when security and business leaders discuss cybersecurity, the rapidly evolving contours of cyber risks get lost in translation. Chief information security officers may fail to convey the complex data they have gathered — on risk points, threat actors, mapping of criminal campaigns — into an accessible story that results in specific mitigating actions in their organizations.

Instead, they need to tell stories that align with their corporate and business priorities. “Boards should be presented with a cyber posture that resonates with customers’ and authorities’ expectations and helps address sectorial ecosystem challenges,” said Christophe Blassiau, senior vice-president of cybersecurity and global chief information security officer at Schneider Electric.

Despite this challenge, “Global Cybersecurity Outlook 2023” reports that the disconnect between cybersecurity managers and business executives has begun to close. Both increasingly perceive the elevated degree of risk exposure and are allocating more resources to coordinate responses in an effective manner, it said, adding that the priority today is on speed.


Respite for oil market amid rate hike worries

Respite for oil market amid rate hike worries
Updated 01 June 2023

Respite for oil market amid rate hike worries

Respite for oil market amid rate hike worries
  • Oil markets may have been oversold in the last two trading days, says analyst

RIYADH: Oil steadied on Thursday as a potential pause in US interest rate hikes and the passing of a crucial vote on the US debt ceiling bill were offset by a report of rising inventories in the world’s biggest oil consumer.

US Federal Reserve officials on Wednesday suggested interest rates could be kept on hold this month and the US House of Representatives passed a bill suspending the government’s debt ceiling, improving the chance of averting a disastrous default.

Brent crude futures fell 10 cents, or 0.14 percent, to $72.50 a barrel by 1339 GMT while US West Texas Intermediate crude rose 7 cents, or 0.1 percent, to $68.16. Both benchmarks fell on Tuesday and Wednesday.

“Oil markets may have been oversold in the last two trading days,” said CMC Markets analyst Tina Teng. “Sentiment rebounded amid the debt bill’s passage in the House and (the) Fed’s rate hike pause signal.”

HIGHLIGHTS

Market sources citing American Petroleum Institute figures on Wednesday said that US crude inventories rose by about 5.2 million barrels last week.

• Brent crude futures fell 10 cents, or 0.14 percent, to $72.50 a barrel by 1339 GMT while US West Texas Intermediate crude rose 7 cents, or 0.1 percent, to $68.16.

Mixed demand indications from China, the world’s biggest oil importer, have nonetheless weighed on the market, as has industry data showing a rise in US crude inventories.

Market sources citing American Petroleum Institute figures on Wednesday said that US crude inventories rose by about 5.2 million barrels last week.

“The current mood is one of pessimism,” said Tamas Varga of oil broker PVM. “Investors have been pragmatic and risk averse of late.”

Also in focus is the June 4 meeting of the OPEC+ producer group, in which the Organization of the Petroleum Exporting Countries and allies including Russia will discuss whether or not to cut oil production further.

Barclays forecast

British multinational bank Barclays has slashed the average price of its Brent crude forecast for this year from $92 to $87 a barrel. The bank also slashed its price forecast of Brent for 2024 as it cut the average projected price to $87 a barrel from $97. 

Chinese company in Brazil 

China’s CNOOC Ltd. has begun production at the Buzios5 well off the coast of Brazil, the company said in a statement on Thursday. 

The well is the fifth phase of the Buzios oil field off Brazil’s southeast coast. At an average water depth of 1,900 meters to 2,200 meters, the field is the world’s largest deep-water pre-salt oil field, with daily production of 600,000 barrels, the company said. 

CNOOC’s Brazilian subsidiary owns 7.34 percent of the Buzios shared reservoir, which is 88.99 percent owned by Brazilian state-owned oil and gas company Petrobras.  CNOOC paid $1.9 billion to Petrobras last year to secure a 5 percent stake in a production sharing agreement at the field. 


UAE’s in-country value projects driving billions to local firms

UAE’s in-country value projects driving billions to local firms
Updated 02 June 2023

UAE’s in-country value projects driving billions to local firms

UAE’s in-country value projects driving billions to local firms

ABU DHABI: More than $27.23 billion has been redirected to the local economy since the UAE Ministry of Industry and Advanced Technology (MoIAT) and ADNOC launched major in-country value programs to support domestic industries.

Speaking at the Make in the Emirates Forum, Abdulla Al-Shamsi, Assistant Undersecretary of MoIAT, said more than $14.43 billion of investment was redirected to the local economy last year alone, an increase of 25 percent year-on-year.

“The National In-Country Value Program is a nationwide program that speaks one language across many different sectors,” Al-Shamsi said. “It’s one methodology and this is something we’re very proud of because it benefits the private sector and when the private sector sees this it helps them prepare, invest, and spend.”

The forum heard how the National ICV Program is “functionating well and accelerating.”

The forum also heard how industrial zones are playing a critical role in the in the country’s sustainable industrial development and broader economic prospects. Local industrial leaders described how they are utilizing alternative energy resources such as solar and hydrogen to reduce their carbon footprint.

The second edition of the Make it in the Emirates Forum concluded on Thursday with the UAE showcasing its unique value proposition to international investors.

Investors were invited to explore opportunities and competitive advantages, with panel discussions focusing on the National In-Country Value (ICV) Program, the role of industrial zones, competitive financing as a key enabler and local talent in the private sector.

The UAE’s industrial exports reached $47.6 billion in 2022, growing 49 on 2021. The industrial sector's contribution to GDP rose to $49.5 billion in 2022, a 38 percent increase on 2020.

The Make it in the Emirates Forum is organized by the Ministry of Industry and Advanced Technology in partnership the Abu Dhabi Department of Economic Development (ADDED) and ADNOC.

On the first day of the forum, the UAE government announced $2.7 billion in industrial offtake agreements, building on the $29.9 billion of offtake agreements announced at the 2022 edition of the forum.


Saudi fintech firm secures $3.2m in seed funding

Saudi fintech firm secures $3.2m in seed funding
Updated 01 June 2023

Saudi fintech firm secures $3.2m in seed funding

Saudi fintech firm secures $3.2m in seed funding

RIYADH: EdfaPay, a Saudi-based fintech startup that helps companies use their smartphones for payment, has raised $3.2 million in a seed funding round.

The funding round was led by Sanabil 500 MENA, Nufud Wealth International, Atmiid Investment, Basmah Commercial Investment, and a group of local and international angel investors.

EdfaPay aims to utilize the capital to strengthen its operations in the Kingdom and expand to Pakistan and South American countries.

Founded in 2022 by Ghormallah Alghamdi and Nedal Sabbah, it uses NFC technology to allow companies to collect payments through smartphones.

In February 2022, the firm secured $1.6 million in a pre-seed funding round led by Nuwa Capital, InspireUs VC, and Wallan Investment Group.

The fintech channeled its acquired funds into launching its financial services across the Kingdom and supported its market-entry efforts.

The Kingdom’s fintech investments reached $400 million in 2022, recording a 79 percent increase compared to 2021.

The Saudi Central Bank, also known as SAMA, is one of the country’s key players in enabling fintech across all subsectors.

Earlier this week, SAMA granted licenses to Spotii and Madfu, two fintech companies that aim to offer consumer financing options.


Saudi Central Bank grants open banking certifications to 2 fintech firms 

Saudi Central Bank grants open banking certifications to 2 fintech firms 
Updated 01 June 2023

Saudi Central Bank grants open banking certifications to 2 fintech firms 

Saudi Central Bank grants open banking certifications to 2 fintech firms 

RIYADH: Saudi Arabia is fostering personalized financial products and services tailored to customer needs with the Kingdom’s monetary authority, granting open banking certifications to two fintech companies. 

The Saudi Central Bank, or SAMA, has permitted Umg Alholol Trading Co. and Drahim App to test their open banking solutions in its regulatory sandbox, reported the Saudi Press Agency. 

This brings the total number of innovators permitted to operate under the central bank’s regulatory sandbox to 45. 

Of the 45 firms, 18 have graduated effectively and become licensed by SAMA to provide their solutions to consumers. 

On Tuesday, SAMA granted open banking certification to Dubai-based Tarabut Gateway, which aims to intensify its operations in the Kingdom.   

Tarabut Gateway, the region’s leading regulated open banking platform, has become one of the early recipients of SAMA’s permit to operate in Saudi Arabia.   

Talking to Arab News, Abdullah Almoayed, CEO and founder of the fintech company, said that consumers in the Kingdom can now expect a wide range of innovative and personalized financial services.     

“We are aware of the unique challenges faced by small and medium enterprises in Saudi Arabia, particularly regarding cash-flow management and access to funding. We will address this issue head-on by assisting SMEs to access the funding they need via open banking-enabled financial services and products,” Almoayed said.     

He said: “The new era of financial services we stand for is user-centric and contributes to customers’ financial well-being.”     

Those moves and initiatives are projected to help the Kingdom come one step closer to achieving the objectives of the Financial Sector Development Program in making the Kingdom among the leading nations in financial technology.   

The central bank has been working toward increasing the adoption of the fintech sector to boost the effectiveness and flexibility of financial transactions.    

Moreover, it has also been promoting financial inclusion for the various segments of society. 

On Wednesday, SAMA permitted Spotii and Madfu to provide consumer finance through the buy now, pay later platform. 

That said, Saudi shoppers can soon find more flexible payment options as two more BNPL companies enter the consumer finance market.


PwC Middle East inaugurates its regional headquarters in Riyadh

PwC Middle East inaugurates its regional headquarters in Riyadh
Updated 01 June 2023

PwC Middle East inaugurates its regional headquarters in Riyadh

PwC Middle East inaugurates its regional headquarters in Riyadh

RIYADH: PwC Middle East, a leading professional services firm in the region, officially inaugurated its regional headquarters in Riyadh on Wednesday.

This move demonstrates the company’s commitment to the region, including creating 6,000 new jobs and continued investments in digital technology, environmental, social, and governance capabilities.

PwC Middle East obtained its regional headquarters license from Saudi Arabia's investment and commerce ministries.

The company established its headquarters before Jan. 1, 2024, a deadline set by the regional headquarters program commissioned by the Investment Ministry and the Royal Commission of Riyadh.

The inauguration ceremony, held at a local hotel in Riyadh, was attended by Saudi Investment Minister Khalid Al-Falih, Hazim Zagzoog, a royal court adviser, and Kevin Ellis of PwC EMEA.

“I am delighted to join PwC Middle East as it inaugurates its new regional HQ in Riyadh, which will help to build the RHQ ecosystem in Saudi Arabia and set global standards for how a professional services sector RHQ should operate,” Al-Falih said.

“It is a natural continuation of a longstanding and mutually beneficial relationship. I also commend PwC on its strong record of employing more than 1,000 talented Saudis in its workforce,” he added.

Hani Ashkar, a senior partner at PwC Middle East, expressed enthusiasm about obtaining the license for their regional headquarters and the honor of supporting Saudi Arabia’s remarkable transformation as it progresses toward its Vision 2030 and beyond.

“At PwC Middle East, we are fully committed to supporting Saudi Arabia’s next phase of its transformational agenda as we digitize, decarbonize, localize, privatize and modernize,” Ashkar said.