BANGALORE: The Indian government's cyber watchdog is investigating how security at two companies that are part of the country's vast IT services industry was breached in a global ATM heist that saw $45 million stolen from two banks in the Middle East.
EnStage Inc., which operates from Bangalore, and ElectraCard Services, based in the Indian city of Pune, processed card payments for the two banks that were hit in the theft, several people familiar with the situation said.
"We are investigating the technical aspect," Gulshan Rai, director general of the Indian Computer Emergency Response Team (CERT), part of the department of electronics and information technology, told Reuters by phone yesterday.
"What kind of breach has happened in the system, how did it happen, what processes are in place, and the entire technical aspect we will look at," he said, adding that the agency had started its investigation on Saturday.
US prosecutors said earlier that hackers broke into two card processing companies, raising the balances and withdrawal limits on accounts that were then exploited in coordinated ATM withdrawals around the world.
The prosecutors did not name the two companies but said one was based in India and the other in the US.
While details of what happened are still sketchy, experts said the banks could bring claims against the processing companies in court, or they could file claims with their insurers and those of the processing companies.
According to a US official and a bank employee, who both spoke on condition of anonymity, ElectraCard Services was the company that processed prepaid travel cards for National Bank of Ras Al-Khaimah (RAKBANK). RAKBANK suffered a $ 5 million coordinated heist at ATMs around the world on Dec. 21 last year, according to the US indictment.
In a statement yesterday, ElectraCard, or ECS, said it had been affected by "fraud attacks" in December. It said investigations show that "PIN and Magnetic stripe data seem to have been compromised outside the ECS processing environment."
MasterCard bought a 12.5 percent stake in ElectraCard in 2010. MasterCard MA.N, the network under which the cards used in the heist were issued, has said its security was not compromised.
EnStage, which is incorporated in Cupertino, California, but has operations based in Bangalore, is the company that processed card payments for Bank of Muscat of Oman, according to a source close to Bank of Muscat. Bank of Muscat lost $ 40 million in a coordinated heist on Feb. 19, according to Thursday's indictment.
"Our customers were adversely affected by this sophisticated crime," EnStage CEO Govind Setlur said in a statement in the Times of India newspaper.
A statement obtained by Reuters from a company spokesman said: "Since the time the incident occurred, EnStage has retained independent security experts to analyze the intrusion and to recommend enhancements to its information security infrastructure. EnStage has implemented both these enhancements as well as additional monitoring capabilities."
Setlur was traveling and could not be reached for further comment yesterday.
An employee at the company's office in central Bangalore who did not want to be identified said that about 250 people work in the office but did not give further details.
Bank of Muscat has not commented on the case.
Police in Pune and Bangalore did not immediately have information on the matter when reached yesterday.
The breach in security at Indian operators is a blow to the country's multi-billion dollar information technology industry, which received about half of all outsourcing contracts in the world in 2011, according to industry data.
India-based IT vendors, who rely on the trust of global clients to handle sensitive data, are dominated by companies providing support services to the global financial industry.
Eddie Schwartz, chief information security officer for RSA Inc., a firm that helps banks fight payment card fraud, said that it is not surprising that hackers would target banks that rely on Indian firms to process transactions.
Schwartz, who is based in Washington, said there is not as much government oversight in India as there is in the United States and Western Europe.
“Hackers view India as a target. It’s got a fast-moving economy, a fast-moving IT infrastructure,” Schwartz said.
Cyber security experts said the global scope and speed of the $ 45 million bank theft was unprecedented. The global gang had operatives in 27 countries who fanned out to thousands of ATMs in a matter of hours, withdrawing money using fraudulent prepaid debit cards, according to US prosecutors.
The ringleaders of the global operation were believed to be outside the United States, but US prosecutors have declined to give details, citing the continuing investigation. Germany is the only other country so far to announce arrests.
ElectraCard is based in a plush office park near the airport on the outskirts of Pune, a fast-growing city in western India that is a hub for the IT and auto industries and is home to several universities. A security guard at the office park, where tenants include IBM, would not allow in a Reuters journalist without an appointment yesterday.
Unlisted ElectraCard had a net loss of 90.2 million rupees ($ 1.65 million) on net sales of Rs. 535.4 million for the fiscal year that ended in March 2012, a sales decline of 1.6 percent, according to a report by ratings agency Crisil.
India IT watchdog investigating breach in ATM heist
India IT watchdog investigating breach in ATM heist
Saudi Arabia’s property market set for growth with billions in new projects
- The largest PIF projects in the Kingdom are in the Asir region
- At least 50 percent of the country’s tourism is expected be centered in Riyadh
RIYADH: The Saudi real estate landscape is poised for substantial growth, as industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh to unveil major developments in property investment and tourism.
Highlighting the Kingdom’s ambitious Vision 2030 objectives, Asir Gov. Prince Turki bin Talal revealed the Public Investment Fund is spearheading nine major projects in the region, with four already launched and five in progress. “The largest PIF projects in the Kingdom are in the Asir region,” the governor said, emphasizing the region’s pivotal role in Saudi Arabia’s evolving property market.
The governor highlighted the region’s growing hospitality sector, with between 6,000 and 8,000 approved hotel rooms currently available.
He also announced that Abha’s World Cup bid had been officially recognized as the best in the Kingdom by the Ministry of Sports.
Meanwhile, Al-Ahsa Gov. Prince Saud bin Talal unveiled plans to expand the region’s hospitality offerings. “Our pipeline includes over seven or eight hotels and more than 25 rural lodges, including three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said. Saudi Tourism Minister Ahmed Al-Khateeb noted the rapid expansion of the Kingdom’s hospitality industry, with hotel room capacity expected to grow from 475,000 to 675,000 by 2030. Al-Khateeb also discussed the impact of major infrastructure projects, such as the King Salman International Airport expansion and the launch of Riyadh Air, which are central to the Kingdom’s hyper-tourism strategy.
He forecast that at least 50 percent of the country’s tourism will be centered in Riyadh, but emphasized efforts to keep the capital’s share from exceeding 80-90 percent. In the financial sector, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, discussed the increasing role of real estate in the Kingdom’s investment market.
“Around 20 percent of the 55 initial public offerings currently under review involve real estate companies,” he revealed.
El-Kuwaiz emphasized the importance of financial stability and transparency for companies looking to list, advising them to treat investors as partners.
In a significant move, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors immediately.
SAMA permits full public launch of STC Bank in digitalization push
RIYADH: The Saudi Central Bank, also known as SAMA, has authorized STC Bank to launch its full operations in Saudi Arabia.
As the first licensed digital bank in the Kingdom, STC Bank’s approval marks a significant step in SAMA’s ongoing strategy to accelerate digital transformation and enhance competitiveness in the banking sector.
At the same time, the move ensures the safeguarding of financial stability, according to a press statement from the central bank.
This milestone underscores the growing dynamism and potential of Saudi Arabia’s digital economy, while also highlighting SAMA’s efforts to create a regulatory framework that fosters innovation within the financial sector.
“SAMA is committed to strengthening the resilience of the banking sector, boosting its appeal, and increasing its role in achieving Saudi Vision 2030 and the Kingdom’s broader national objectives. This includes empowering entrepreneurs and financial institutions to deliver innovative financial services to the Saudi market,” the central bank said.
The approval follows a significant step taken in April 2024, when SAMA formally approved the transition of STC Pay — the mobile financial services arm of Saudi Telecom Co. — to STC Bank. Following a nine-month beta launch, STC Bank is now poised to begin its full banking operations.
Additionally, in December 2024, SAMA also gave the green light to D360 Bank, another digital financial institution, allowing it to begin its operations in the Kingdom.
Al-Habtoor Group halts investment plans in Lebanon amid growing instability
DUBAI: UAE-based business conglomerate Al-Habtoor Group has abandoned its plans to reenter the Lebanese market, citing ongoing “unrest and instability” caused by armed militias.
In a statement issued on Tuesday, Khalaf Al-Habtoor, chairman of the group, explained that recent developments had deeply shaken his optimism.
“My team and I had been diligently preparing to launch new projects and expand existing investments in Lebanon, encouraged by promising signs such as the election of Gen. Joseph Aoun as president and the nomination of Nawaf Salam as prime minister. Both individuals embody integrity, credibility, and respect, instilling renewed hope among the Lebanese people — and investors like myself — for the country’s future,” the statement read.
However, he said that the continued dominance of armed militias, particularly what he described as “Shiite militias”, and the “absence of rule of law” have made it impossible for investors to proceed with confidence.
Tensions escalated with Hezbollah supporters holding rallies in Beirut, including in Christian-majority neighborhoods, further raising sectarian divisions. The protests followed the return of Shiite residents to southern Lebanon after a ceasefire between Israel and Hezbollah was recently extended.
In his statement, Al-Habtoor lamented the lack of decisive action from Lebanese authorities, including the army and the Ministry of Defense, in addressing these disturbances, noting that the situation was only worsening.
Unless the new government takes a firm stance against those working to destabilize the country, hopes for a “new Lebanon” will remain unfulfilled, he said.
Al-Habtoor clarified that the decision to pull out was made after careful analysis and close monitoring of the situation. As a result, neither he, his family, nor any group managers would be traveling to Lebanon.
Earlier this month, and following the wave of optimism that followed the election of President Aoun and Prime Minister Nawaf Salam, Al-Habtoor told Arab News in an interview that his group intended to move forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.
The group, a multibillion-dollar global conglomerate, has diverse interests spanning luxury hotels, shopping malls, and more. As of January last year, its investments in Lebanon were estimated at around $1 billion.
Experts predict suburban boom, smarter housing designs in Saudi Arabia
RIYADH: The rise of community living and the increased accessibility of suburbs, driven by advancements in transportation, are transforming real estate trends in Saudi Arabia, experts say.
At the Real Estate Future Forum in Riyadh on Jan. 28, Khaled Elsehamy, chief development officer for real estate at the National Housing Co., highlighted the significant shift in the Kingdom's real estate sector. According to Elsehamy, more people are now viewing suburban areas as attractive living options.
During a panel discussion, Elsehamy also noted a growing preference among Saudi residents for smaller housing units, moving away from the traditional multigenerational homes.
“Suburbs are becoming increasingly appealing,” Elsehamy said. “People now find areas outside the central cities more attractive due to their convenience, accessibility, and proximity to essential services. They can easily connect with the city whenever they wish.”
He continued: “The rising costs of utilities, furniture, and maintenance have led people to seek smaller, more efficient homes. There is a growing demand for durable, modular designs that offer long-term savings while meeting modern needs.”
Elsehamy’s remarks came just a day after NHC CEO Mohammad Al-Buty announced that lower interest rates in 2025 will help the company surpass its 2024 sales targets. This aligns with NHC’s broader ambition to become the leading real estate developer in the region and stay at the forefront of the industry.
Elsehamy also discussed the shifting mindset of Saudi homebuyers, noting a stark contrast to traditional purchasing habits. “In the past, people bought homes for their children and grandchildren. That’s no longer the case,” he explained.
“Today, people are looking for homes that fit different life stages. They think, ‘I’ll live in this house now, move to a bigger one later, and eventually downsize to a smaller place by the beach in 20 years.’”
The NHC official emphasized that community living is driving new trends in Saudi Arabia’s housing market. “Community living allows residents to interact more with those around them, and it often includes amenities like community centers where people can work, especially those with remote work options.”
Echoing these sentiments, Andrew Baum, emeritus professor at Oxford, also spoke during the panel, highlighting how modern homebuyers prioritize accessibility over location.
“Previously, location was everything in real estate,” said Baum. “But today, accessibility has become the key factor. The new metro in Riyadh is set to significantly impact property values, opening up newly accessible areas.”
Oussama Kabbani, group chief Development officer at ROSHN, emphasized that Saudi Arabia’s real estate sector has reached a global standard post-Vision 2030. Reflecting on ROSHN’s approach to enhancing community living standards, Kabbani explained that understanding customer needs is central to their success.
“It all comes down to data and actively listening to your customers,” he said. “We conduct numerous surveys online and engage directly with residents to understand what’s missing. We focus a lot on creating activities for children, with educational and cultural events to keep them engaged.”
He continued: “We also place a strong emphasis on sports. It's not complicated — you don’t need to spend a fortune to make people happy. The key is knowing what makes them happy and delivering it with quality.”
Kabbani also noted the growing sophistication of the community real estate sector. He predicted that investments in senior living spaces, alongside data centers and healthcare facilities, would soon become more prominent.
“Our communities are designed with schools, community centers, playgrounds, and more,” Kabbani added. “When people choose to live in our communities, they’re not just buying a home — they’re buying a lifestyle. And we’re committed to ensuring that lifestyle is truly lived.”
During the session, Nasser Al-Kadi, chief investment officer at Awqaf Investment, praised the recent regulatory reforms in Saudi Arabia’s real estate sector, noting their positive impact on the market.
He emphasized the importance of embracing technological advancements to further modernize the sector. “The regulatory changes in Saudi Arabia have not only attracted external capital but also increased transparency within the industry,” Al-Kadi said.
He continued: “Technology isn’t just a tool for optimization — it’s a driver of growth and innovation. We haven’t yet seen the full potential of these technologies in the Kingdom’s real estate sector.”
Robert J. Di Franco, chief development officer at Roaya Co., also highlighted the growing influence of technology, stating that innovation is fundamentally reshaping every aspect of the real estate industry.
“Innovation and technology are shaping everything we do — from pre-acquisition phases to market analysis, accessing real-time transactional data, to how we manage construction projects and facility handovers. Technology is now integrated into every part of our process,” Di Franco said.
Foreign investments set to revive Makkah’s property market: Ladun CEO
RIYADH: Saudi construction firm Ladun Investment Co. expects a surge in Makkah’s real estate sector following a key ruling by the market regulator allowing foreign investment in Saudi-listed companies owning property in the holy cities.
In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hassan Al-Hazmi, CEO of the Tadawul-listed firm, emphasized that the new regulations are poised to drive investor confidence in Makkah’s market, which has faced stagnation in recent years.
On the event’s opening day, the Kingdom’s Capital Market Authority announced that the Makkah and Madinah real estate markets will now be open to foreign investors. However, investments are limited to shares or convertible debt instruments of listed companies, with total non-Saudi ownership — individuals and legal entities — capped at 49 percent of a company’s shares.
The decision is expected to enhance the competitiveness of Saudi Arabia’s capital market and support the Vision 2030 economic diversification agenda.
“As Mohammed El-Kuwaiz, chairman of the CMA, mentioned yesterday (Jan. 27), the regulations have been studied for more than three years. He said they were supposed to be approved two years ago but were delayed to make them more holistic. There is now a big study regarding foreign investors having ownership in Makkah, Madinah, and the Kingdom as a whole,” said Al-Hazmi.
He said Ladun is focused on Makkah and anticipates growth. “We already manage and own assets in Makkah worth more than SR3.2 billion ($853.1 million).”
Al-Hazmi noted that Makkah’s real estate sector had faced stagnation since 2014, particularly due to the impact of COVID-19 on religious tourism and travel. However, he believes that the sector is on the brink of recovery.
“We already see signs of recovery — companies owning assets in Makkah are experiencing a rise in their share prices. This is very positive, and we anticipated this shift and planned accordingly,” he added.
Ladun is also focused on localizing its workforce and increasing Saudi employment opportunities, aligning with government initiatives.
“Just today, we signed an agreement with the Ministry of Municipal and Rural Affairs and Housing regarding human capital and how we are going to localize more Saudis. At the managerial level, including our C-suite, we have Saudis,” Al-Hazmi said.
He added: “In middle management, we have many young men and women who are part of our company, and they are truly giving us great empathy and trust in ourselves to move forward. This is one of the pillars of Vision 2030.”
In November, Ladun announced a new investment in Jabal Omar Development Co. in partnership with Musharaka Capital, acquiring a land plot worth SR600 million with an expected revenue of approximately SR2 billion. This investment is viewed as a major step in reinforcing Ladun’s presence in Makkah’s evolving real estate market.
Al-Hazmi also highlighted the broader impact of Vision 2030 on the Saudi real estate market, particularly in Makkah, which he sees as a prime beneficiary.
“Stability brings prosperity, and Saudi has enjoyed stability for 100 years now, that brings prosperity. We see it. We see it around the region,” he said.
Referring to comments made by Larry Fink, CEO of BlackRock, during the World Economic Forum in Davos, Al-Hazmi added: “Larry mentioned that if we take the US aside, we will find the most stable area in the world the GCC countries. Prosperity will be there.”
With a focus on sustainable expansion, strategic investments, and market recovery, Ladun Investment Co. remains optimistic about its role in shaping Makkah’s future real estate landscape.
