Insights

The Middle East has invested heavily in digitalisation to diversify the economy and reduce reliance on oil revenues. However, this rapid digitalisation has resulted in an increase in cyber risk from both cyber criminals and state-sponsored actors. IBM’s X-Force 2025 Threat Intelligence Index reports that the Middle East and Africa accounted for 10% of global cybersecurity incidents in 2024, up from 4% (2022) and 7% (2023). Saudi Arabia (63%) and UAE (16%) accounted for most of the incidents.

The growing cyber threat and increasing interdependencies between digital infrastructure has led to strong local regulations to protect critical national infrastructure and enforce data sovereignty. Consequently, investment in the protection of Operational Technology (OT), the hardware and software that controls physical infrastructure, has grown considerably and Westlands Advisory’s latest analysis expects continued growth at a CAGR of 24% (2024-2031). Whilst a sizeable portion of this investment is from energy related industries (e.g. oil and gas production, refining, power generation, and energy transmission and distribution), investment in focus sectors will also strengthen (e.g. tourism and smart cities).

A further consequence of regulation and the requirement for data localisation is the growing footprint of data centres throughout the Middle East to provide the compute for ambitious AI related projects such as Saudi Arabia’s Transcendence AI Initiative and Dubai’s RTA AI Strategy 2030’s 81 projects and initiatives.

Investment in OT Cybersecurity has grown significantly over the last decade, resulting in leading asset owners significantly improving their cybersecurity posture. Nevertheless, more is required to balance the benefits of digitalisation with the cyber risk. Westlands Advisory’s research into trends impacting cybersecurity posture concludes that growing digitalisation and security incidents are not currently being matched by investment in cybersecurity. Furthermore, the research highlights that regulation to 2023 has had a low impact on improving the OT cybersecurity posture across most process and manufacturing industries.

In a hyperconnected world, organisations need to ensure resilience to systemic shocks. Effective incident response plans are critical for responding to and mitigating the impact of cybersecurity incidents. This requires training and exercising that replicate real-world scenarios, thereby increasing the preparedness of SOC analysts and incident response teams. WA visited Thales Ebbw Vale to gain an insight into how critical infrastructure owners use the cyber range to improve security programs.

As cyber threats evolve and intensify, organisations are increasingly exposed to new risks. Staying on top of the intelligence reporting is a challenge. This report is intended for executives that do not have the time, nor the need, to read over 20 cyber threat intelligence reports. WA has done that for you and summarised the key actions.

Regulation related to sustainability and a focus on reducing energy costs is driving increased investment in the digital transformation of buildings and a focus on cybersecurity. Although demand for buildings OT cybersecurity is increasing, it is starting from a low base, highlighting the industry's current underdeveloped cybersecurity maturity and the growing recognition of the need to address vulnerabilities. The journey to improved resilience is not straightforward but building owners can take modular steps and this starts with identifying assets and understanding risk.

In June 2024 Houthi militants successfully struck a commercial vessel in the Red Sea with a remotely operated Unmanned Surface Vehicle (USV), highlighting an often overlooked threat to national security.

On April 26th Darktrace announced that it was being acquired by Thoma Bravo, taking it private again after close to four years as a publicly traded company. There are precedents and striking similarities with Sophos and Mimecast’s return to private ownership.

Stand Alone (SA) 5G networks accelerate IoT investment due to improved performance and availability. With most of the world still reliant on Non Stand Alone (NSA) 5G networks, WA anticipates increased expenditure on IoT infrastructure and applications as SA networks grow, and a corresponding rise in cybersecurity.

WA visited EY's OT Cybersecurity Lab in Warsaw to understand how dedicated off-site facilities can help asset owners design and implement security programs.