UAE’s cyber defences need to be improved, experts say



ABU DHABI // The UAE’s cyber security and cyber forensics capabilities need to expand to cover the rate at which sensitive information becomes available online.

“The current state of cyber security in the UAE has been largely defined by two major factors – an evolving threat landscape, and the various regulations that have been put in place to combat those threats,” said Col Ralph Thiele, chairman of the Cyber Defence and Network Security summit and a former director of special projects for the German air force.

“The UAE is a highly connected society, and the internet has become an important tool for connecting the Government to the people and businesses.”

Matthew Cochran, chairman of the Defence Services Marketing Council in Abu Dhabi, said cyber forensics groups were very active in the GCC .

“The marketplace is saturated with offers of cyber forensics and each country is searching for unique solutions that can be tailored to their requirements,” he said.

“We have seen remarkable telecom technologies homegrown in the UAE, at universities like Khalifa University, that address this important cyber forensics sector.”

He said it was vital to have this capacity to investigate and prosecute criminal offenders.

“Think of cyber forensics as 21st-century fingerprints left by the criminals,” he said. “Having the right tools and experts trained in knowing what to look for to protect your critical cyber infrastructure and government is of paramount importance.”

Col Thiele said attacks on government websites in the UAE in July last year demonstrated how vulnerable they were. “The UAE’s computer emergency response team was able to address and minimise the impact of the attacks,” he said.

“Its forensics capability came to fruition, which means its capability to extract information and data from computers to serve as digital evidence. So the UAE has given cyber security a high priority to protect its critical national infrastructure.”

He said that technology evolved rapidly and cyber forensics professionals needed to continually keep pace and educate themselves.

“Government, businesses and citizens will depend on this expertise to collect digital evidence in order to prove and legally prosecute cyber crime and attacks,” he said.

cmalek@thenational.ae

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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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