“This is just the beginning. We are in a cyberwar as we speak,” said Amir Kolahzadeh, founder and chief executive of internet security firm IT Sec. “We expect to see more sophisticated attacks, possibly with targeted demographics or location. Our smart buildings, our smart cars, our smart everything is a target.”
More than 100,000 organizations in at least 150 countries have so far been hit by the WannaCry ransomware attack, including Telefonica, FedEx, Nissan, Deutsche Bahn and the UK’s National Health Service, with experts warning that the attack is a clear sign of the escalating challenges facing cyber security.
One of the largest attacks of its kind, the WannaCry virus exploited a security hole in Microsoft Windows, encrypting common file formats and rendering a PC useless until a ransom is paid.
“Ransomware is a type of malicious software that blocks access to data until a ransom is paid and displays a message requesting payment to unlock it,” said Ghareeb Saad, senior security researcher, global research and analysis team, at Kaspersky Lab.
“Ransomware has been very successful recently, becoming one of the main threats of the year. One of the reasons why ransomware is successful lies in the simplicity of the business model used by cybercriminals. Once the ransomware gets into a system there is almost no chance of getting rid of it without losing personal data. Also, the demand to pay the ransom in bitcoins makes the payment process anonymous and almost untraceable, which is very attractive to fraudsters.”
So far there has been an unknown — but believed to be limited — number of attacks in the Middle East and North Africa, with only Egypt in the list of top 20 attacked countries, according to Kaspersky Lab. It was ranked 19th globally, although Kolahzadeh says a number of unnamed regional institutions have been compromised.
“We have been notified that a few systems that are part of large organizations in mission-critical control infrastructure have been infected,” said Kolahzadeh. “Unfortunately, a version two of the ransomware has been released that bypasses the earlier kill switch that was found.”
Saudi Telecom (STC) denied that its systems were affected after photos were circulated on social media claiming to show infected STC computers, but both Saudi Arabia and the UAE are known to be high-value targets for attacks.
Earlier this month US-based cyber security firm Symantec reported that the UAE and Saudi Arabia were the most targeted countries in the Middle East when it comes to ransomware. The company also found that 30 percent of UAE ransomware victims are willing to pay a ransom, compared with 34 percent globally, despite the country’s Telecommunications Regulatory Authority advising against payment of any ransom.
“These sort of attacks are only avoidable with proper cyber-security awareness training and the correct levels of cyber security, regardless of the size of your organization,” says Kolahzadeh. “Ransomware is extremely dangerous since it is the source of income for cybercriminals. However, it is easily avoidable with proper end-point protection and user awareness.”
Newer and more dangerous versions of the WannaCry virus may emerge, with Windows users urged to install the official patch from Microsoft that closes the vulnerability used in the attack, says Kaspersky Lab. There are also patches available for Windows XP, Windows 8, and Windows Server 2003.
“WannaCry is also targeting embedded systems,” says Saad. “We recommend ensuring that dedicated security solutions for embedded systems are installed, and that they have both anti-malware protection and default deny functionality enabled.”
Such widespread disruption as that caused by WannaCry raises fears of future attacks. And not only ransomware, but all forms of cyber attacks.
On Oct. 21 last year, for example, a cyber-attack brought down much of the internet across large tracts of the US. The attack was the work of the Mirai botnet, which is made up of Internet-connected devices such as digital cameras, routers and DVRs, and targeted the servers of Dyn, a firm that controls much of the internet’s domain name system infrastructure. Dyn remained under sustained assault for the best part of a day, bringing down sites such as Twitter, The Guardian, Netflix, Reddit, CNN and many others across Europe and the US.
“Everything is connected now, from televisions to refrigerators to children’s toys. They are connected to the internet, and every connection is a point of potential attack,” said Dino Wilkinson, a partner at law firm Norton Rose Fulbright (Middle East) in Dubai. “The botnet attack used internet of things devices as a gateway to get in and to control.
“This is the whole issue with autonomous vehicles. Yes they are great, but they are reliant on communications technology, and so they are potentially open to be hacked or breached in the same way as any other piece of connected technology. And hacking into a car or vehicle has quite massive implications.
“We will see more and more of this kind of stuff,” he added. “From our side we are seeing more clients talking to us about preventative support — helping them with policies, looking at insurance and other measures that can protect them.”
How to protect yourself from ransomware
The key to remaining safe and free of attacks is vigilance. It is about making sure your systems are up-to-date, that you are careful about what you do on your computer, what you use it for, and what sites you visit.
“My advice to all users is to stay vigilant to emails that are received from external or untrusted sources,” said Amir Kolahzadeh, founder and chief executive of internet security firm IT Sec.
“Do not click on links or open attachments in emails from unidentified and/or suspicious senders. Do investigate the email before opening it. Ensure that an anti-virus software is installed on your personal computers, and always keep them updated. Report any suspicious activities to the IT service desk in your organization. Proactively change your passwords. Ensure they are strong and hard to guess.”
WannaCry? Latest cyberattack is ‘just the beginning’
WannaCry? Latest cyberattack is ‘just the beginning’
Chalhoub Group expands Saudi operations with new fulfillment hub and store
RIYADH: Chalhoub Group is strengthening its presence in Saudi Arabia by launching a regional fulfillment hub in Riyadh and inaugurating a new luxury store in Solitaire Mall.
The company’s latest investments underscore its commitment to the Kingdom’s evolving retail landscape, in line with its long-term expansion strategy.
The new fulfillment center, located in the Riyadh free zone near King Khalid International Airport, is designed to boost the company’s e-commerce and distribution operations, serving Saudi Arabia and the broader region.
In an interview with Arab News during the Retail Leaders Circle Global Forum 2025 in Riyadh, Patrick Chalhoub, executive chairman at Chalhoub Group, highlighted the facility’s strategic role.
“It’s a fulfillment center, which is aiming to really service both our digital and e-commerce drive, our distribution in Saudi Arabia but also beyond Saudi Arabia from Riyadh, gradually, to be really a hub of distribution,” he said.
The hub is expected to process up to 100 million luxury products at full capacity, leveraging advanced technology to optimize logistics and improve delivery speed.
“The aim, like in e-commerce, is to be able to fulfill in Riyadh within two hours, in Saudi Arabia within 24 hours, outside Saudi Arabia in less than three days,” Chalhoub stated.
“This will be and is the heart of the market, so it’s better to be based in the heart of the market and not be based outside and servicing the market,” he remarked, referring to the Kingdom as the center of luxury retail.
Chalhoub Group has been present in the Saudi market since 1959 and has witnessed significant policy and economic shifts over the decades, the executive chairman highlighted.
The company now employs approximately 5,000 people in the Kingdom, with 78 percent of its workforce being Saudi nationals and 74 percent women.
As part of its retail expansion, Chalhoub Group is also set to open a new store in Solitaire Mall in Riyadh on Feb. 12.
The store is designed to deliver an enhanced shopping experience, reflecting the company’s focus on innovation in retail.
Chalhoub highlighted that consumer behavior in the Middle East differs significantly from other regions, driven by cultural and social dynamics.
Unlike Western markets, where individual preferences often dictate shopping trends, the Middle East places a strong emphasis on family-oriented experiences.
Human connection is central in shaping commerce, with relationships and social interactions deeply influencing purchasing decisions.
He underlined that while some of these characteristics can also be found in regions like Latin America and parts of Asia, they are far less prevalent in Western markets.
Additionally, the retail landscape within Saudi Arabia itself is highly diverse, varying by region. Consumer preferences in the western, central, and eastern parts of the Kingdom are distinct, reflecting localized tastes and traditions.
Chalhoub pointed out that Saudi Arabia’s rapidly growing young population is another key driver of change.
With high birth rates and large families, the country’s demographics present significant opportunities for brands. Increasing education levels and digital connectivity are also shaping a new generation of more knowledgeable, globally aware, and tech-savvy consumers.
He emphasized that this evolving demographic is one of the most valuable assets for the Kingdom and the broader Gulf region.
Chalhoub provided insights into the global luxury market, emphasizing the Middle East’s growing but relatively small share.
The worldwide luxury market — including beauty, fashion, jewelry, watches, and gift items — is valued at approximately $380 billion, with the Middle East accounting for $12.5 billion, or around 3 percent to 4 percent of the total.
However, for successful brands, the region can represent between 5 percent and 7 percent of their global sales, highlighting its potential for further growth.
Saudi Arabia’s luxury market is currently valued at nearly $3.5 billion, making up less than 1 percent of the global luxury sector.
In comparison, the UAE, driven by tourism and local demand, boasts a luxury market exceeding $7 billion to $8 billion.
Chalhoub also noted that despite their smaller populations, countries like Qatar and Kuwait have well-established luxury fashion markets, in some cases surpassing the Kingdom’s in terms of spending per capita.
Given Saudi Arabia’s population of over 33 million, compared to Qatar’s 2 million and Kuwait’s 5 million, he suggested there is room for significant market expansion in the Kingdom.
Closing Bell: Saudi main index closes in red at 12,414
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 19.53 points, or 0.16 percent, to close at 12,414.40.
The total trading turnover of the benchmark index was SR7.01 billion ($1.87 billion), as 102 stocks advanced, while 122 retreated.
The MSCI Tadawul Index decreased by 4.85 points, or 0.31 percent, to close at 1,543.76.
The Kingdom’s parallel market, Nomu, rose 0.17 percent gaining 54.22 points to close at 31,250.59. This comes as 33 stocks advanced, while 47 retreated.
The best-performing stock was Ash-Sharqiyah Development Co. with its share price surging by 6.74 percent to SR22.82.
Other top performers included the Zamil Industrial Investment Co., which saw its share price rise by 4.61 percent to SR35.20, and Americana Restaurants International PLC - Foreign Co., which saw a 4.44 percent increase to SR2.59.
The worst performer of the day was Kingdom Holding Co., whose share price fell by 2.97 percent to SR10.46.
The Co. for Cooperative Insurance and SABIC Agri-Nutrients Co. also saw declines, with their shares dropping by 2.3 percent and 2.27 percent to SR153.20 and SR112, respectively.
On the announcements front, Arab National Bank announced its annual financial results for 2024 with net profits before zakat and income tax reaching SR5.7 billion up by 21.1 percent compared to the previous year.
In a statement on Tadawul, the company said the surge was driven by higher net special commission income, fee and commission income, trading gains, and dividend income. It was also supported by lower impairment charges on real estate and reduced allowance charges for expected credit losses and other provisions.
“However, this growth was partially offset by an increase in the costs related to salaries and employee related expenses, depreciation and amortization, other general and administrative expenses and premises related expenses, along with a decline in net gains on non-trading instruments, net other operating income and net exchange income,” the statement added.
ANB’s total comprehensive income amounted to SR4.6 billion in 2024, and total operations profit reached SR9.5 billion.
In today’s trading session, the shares of Arab National Bank traded 0.37 percent lower on the main market to close at SR21.44.
Azad Properties, NHC join hands to develop Souq7 Riyadh
RIYADH: Saudi Arabia’s Azad Properties and the NHC have agreed to develop the Souq7 Riyadh project, reflecting a public-private partnership aligned with Vision 2030 goals.
In an interview with Arab News on the sidelines of the 2025 RLC Global Forum, Ayman Al-Burti, CEO of Azad Properties emphasized that partnerships are a key pillar of his company’s expansion strategy.
The agreement comes amid Saudi Arabia’s drive to bolster the private sector and foster sustainable partnerships for development. It also underlines the Kingdom’s rapid real estate advancements, driven by innovative, eco-conscious urban developments and substantial infrastructure investments.
“One of our most exciting recent collaborations is with the NHC, with whom we have signed a MoU to develop Souq7 Riyadh,” Al-Burti said.
He added that the 700,000 sq. meter project will establish a dynamic commercial hub in the Al-Khuzam suburb, showcasing the company’s dedication to creating spaces that drive economic growth.
“This initiative builds on the success of Souq7 Jeddah, a project that transformed traditional retail by integrating innovation and community engagement. With the NHC, we aim to replicate this success in Riyadh, offering new opportunities for both local businesses and global brands,” Al-Burti said.
The CEO of the real estate developer highlighted that when Azad Properties was founded in 2017, it had a clear mission of creating spaces deeply rooted in the needs and aspirations of their communities, contributing to their success in the Saudi real estate market.
He added that today, under the umbrella of AWJ Holding, they manage 12 properties across the retail, logistics, and commercial sectors, each designed to reflect both the history and the evolving needs of the surrounding districts.
“Guided by Saudi Vision 2030, we have built destinations that inspire and elevate daily life. This is what differentiates Azad. We are not just building projects; we are contributing to a brighter, more sustainable future for Saudi Arabia,” he said.
Speaking about their plans to list on the Saudi market, he stated that the dates and timelines will be announced in due course.
“While the timeline for the public listing will be announced at a later stage, we are finalizing our plans and focusing on key milestones. These include optimizing our portfolio, enhancing corporate governance, and increasing stakeholder engagement,” he said, adding that their aim is to ensure a smooth and successful initial public offering preparation process that supports our long-term growth and strategic objectives.
He pointed out that they have announced the appointment of PwC, a global leader in IPO advisory services, to support their journey toward going public. “These efforts are in line with our 5-year strategy and efforts to enhancing our organizational, operational, and governance frameworks to meet the highest IPO standards,” he said.
Al-Burti added that their strategy focuses on strengthening their diversified portfolio, which includes lifestyle retail, logistics, and commercial properties.
“Beyond portfolio management, we are also strengthening our digital infrastructure and incorporating sustainability principles across our developments. This positions Azad Properties as a forward-thinking leader in the real estate market,” he said.
The executive also emphasized that competition is something they welcome, as it drives innovation and raises industry standards. He added that Azad Properties sees its role as contributing to the Kingdom’s broader vision of becoming a world-class destination with diverse offerings in the sector.
“Saudi Arabia’s real estate sector is undergoing a transformation in line with Vision 2030. We are proud to play a part in that change by offering developments that add to the richness and variety of destinations across the Kingdom. Together with other players in the market, we are enhancing the appeal of Saudi Arabia as a hub of cultural, commercial, and lifestyle excellence,” he said.
As for Azad Properties’ approach to the environment amid the company’s expansion plans, he stated that sustainability is integrated into every phase of their projects.
He emphasized that the company focuses on creating lasting impact through solutions that preserve resources, enhance energy efficiency, and reduce waste while ensuring their developments remain adaptable to future needs, fully aligning with Saudi Arabia’s Vision 2030 goals.
The CEO highlighted that the recent announcements are just the beginning of what lies ahead.
“One of Azad’s key areas of expansion is in the logistics and commercial sectors, aligning with Saudi Arabia’s major efforts to develop free zones and enhance its logistics infrastructure under Vision 2030.”
He also underlined that these initiatives are designed to diversify the economy, attract foreign investment, and create opportunities for businesses to expand their operations in the Kingdom.
“Our strategy involves expanding our portfolio through targeted projects that support both local and international business needs. With more collaborations on the horizon, we remain focused on delivering developments that align with Vision 2030 and enhance the Kingdom’s position as a leading destination for investment and innovation,” he concluded.
Azad has developed the Souk7 Jeddah project, which spans over 700,000 sq. meters, with a rental area exceeding 400,000 sq. meters. The project includes more than 4,000 stores spread across 114 buildings, with an estimated cost of SR 1.5 billion ($400 million).
It aims to generate annual retail sales exceeding SR2 billion and create more than 24,000 jobs for Saudi youth, contributing to the country’s economic growth and aligning with the Kingdom’s promising vision.
Saudi property firm RASM eyes global partnerships, CEO says
RIYADH: Saudi property management firm RASM is exploring international partnerships as part of its strategy to strengthen its market position and drive growth in the Kingdom’s expanding real estate sector, said a top official.
In an interview with Arab News, Artin Malatjalian, CEO of the newly launched firm, shared that RASM is considering working with companies in the same field and may announce details later this year, although he refrained from revealing any names.
The firm specializes in regional malls, community centers, and mixed-use developments, with a focus on meeting the needs of investors, owners, and retailers.
The launch of RASM highlights the growth of Saudi Arabia’s real estate sector, which is expected to reach a market value of $101.62 billion by 2029, with a compound annual growth rate of 8 percent from 2024.
“We are contemplating the idea of partnering with an international player in the same field. I will not mention the names, but we are considering three major ones on a global scale” said Malatjalian, adding that “this will take us to the next level.”
The CEO emphasizing his company’s speed, market presence, and dynamic decision-making, but pointed out that the firm could not be a “center of excellence” without international collaborations.
“I would reckon that sometime by the second half of this year, we can start announcing new alliances with all of those international service providers,” said Malatjalian.
Sharing that the company’s long-term goal is to go public, the CEO said, “It will take us three to five years to reach a stage where we can start looking at filing for an IPO in the market.”
However, in the short term, RASM is focused on attracting top talent, with its senior-level team expected to be fully operational by June.
The firm is already managing Red Sea Mall in Jeddah and is overseeing the development of The Point, a new project in Abha that is currently under construction.
RASM also plans to establish a presence in Riyadh, the Eastern region, Makkah, and Madinah, he added.
Beyond real estate, the company is exploring partnerships with technology firms to enhance its offerings and differentiate itself in the property management sector.
GCC grocery market shifts toward value-led retail: Oliver Wyman
- 51% of Saudi consumers prioritize value, including price and promotions, when selecting their primary retailer
- 56% of UAE consumers and 33% of Saudis prioritize speed and convenience when grocery shopping
RIYADH: Gulf Cooperation Council retailers faced increasing pressure to stand out as competition in the region’s retail sector intensifies, according to a recent report.
US-based management consulting firm Oliver Wyman highlighted the rising significance of value-led grocery retailing in the region in a recent analysis titled “The Affordability Imperative: Capitalizing on Value-Led Grocery Retail in the GCC.”
“As the grocery retail landscape in the Gulf Cooperation Council becomes increasingly saturated, the need for differentiation has never been more critical,” the report said, adding that shifting consumer priorities and rising demand for affordability provide an opportunity for retailers to reshape the market by adopting cost-conscious strategies.
Saudi Arabia’s grocery sector undergoes transformation
The Kingdom, the largest market in the GCC, provided a critical case study in the transformation of grocery retail. According to a 2024 survey by Oliver Wyman on Saudi Arabia’s consumer trends, more than half of the nation’s households experienced a shift in income levels throughout the year.
“Around 31 percent of households reported a drop in income during 2024, with 11 percent seeing declines of more than 50 percent,” the study said, adding that 40 percent of consumers saw a decrease in their savings, while only 23 percent managed to increase theirs.
Consumers prioritize affordability in shopping choices
Consumers have responded by adopting new shopping behaviors. Nearly 48 percent of surveyed individuals compare prices before making purchases, while 46 percent actively seek out stores offering lower prices.
The Oliver Wyman Customer Perception Map Survey found that 51 percent of Saudi consumers prioritize value, including price and promotions, when selecting their primary retailer.
Private-label products have gained traction as a cost-saving measure, with 80 percent of consumers reporting regular purchases.
The study added 68 percent of shoppers expressed interest in discount grocery retailers and 97 percent of those familiar with international discount brands, such as German-based supermarkets Aldi and Lidl, said they would consider shopping at these stores if available locally.
Three key strategies driving success in value-led grocery retail
The study identified several fundamental strategies employed by successful international value-led grocery retailers.
One is maintaining an attractive proposition through competitive pricing, a strong private-label presence, and a streamlined product assortment. This approach allows retailers to maximize cost efficiency while appealing to budget-conscious shoppers.
Another factor is operational excellence, which can be achieved by optimizing supply chains, enhancing private-label and fresh product management, and fostering a cost-effective corporate culture.
Lastly, leading discount retailers prioritize rapid expansion by maintaining a low capital expenditure model, leveraging deep market knowledge, and reinvesting profits into further growth.
The two-step approach to long-term success
The report highlighted a two-step approach used by successful value-led retailers.
The first step focuses on establishing a strong value perception through low prices, limited assortments, and simple store formats. Once a solid foundation is built, the second step involves enhancing offerings by improving product quality, diversifying selections, and upgrading the shopping experience.
While affordability is a key factor in value-led grocery retail, successful retailers differentiate themselves through pricing models, product assortment, operational efficiency, and customer engagement.
International discount chains influence GCC market trends
Internationally recognized brands such as Aldi and Lidl rely on an “everyday low pricing” strategy, while retailers like Belgium-based Colruyt implement a lowest-price guarantee within their market areas.
Discount retailers commonly utilize private-label products, automation, and digital engagement tools to drive sales.
The GCC region presents distinct opportunities and challenges for value-led grocery retailers, the report said.
Challenges and opportunities in the GCC grocery sector
The market is shaped by a variety of demographics. In the UAE, expatriates comprise 89 percent of the population, significantly impacting consumer behavior. In Saudi Arabia, the growing middle class influences spending patterns and drives demand for new products.
Traditional grocery stores, or “baqalas,” continue to compete with modern trade, which accounts for 83 percent of fast-moving consumer goods sales in the UAE and 52 percent in the Kingdom.
Private-label market penetration remains underdeveloped, standing at 3 percent in the UAE and 1 percent in Saudi Arabia, leaving significant room for growth.
Price levels vary across the region, requiring a tailored approach, while centralized sourcing could help retailers manage costs.
Consumer behavior in the region is also influenced by a strong preference for service-oriented shopping, with 56 percent of UAE consumers and 33 percent of Saudis prioritizing speed and convenience in their grocery shopping experiences.
Emerging models for value-led grocery expansion
Oliver Wyman’s report identified four potential models for value-led grocery retail expansion in the GCC.
The neighborhood discount focuses on small, local stores offering essential products at low prices and is exemplified by retailers such as Turkiye’s BIM and Egyptian discount supermarket chain Kazyon.
The basic discount adopts a no-frills approach with a limited product range and competitive pricing, similar to UK-based Netto and Poland’s Biedronka supermarket chains.
The mature discount builds on strong value and operational efficiency foundations while enhancing private-label dominance, fresh product offerings, and store aesthetics, as seen with Aldi and Lidl.
The full-basket value-led model offers a comprehensive grocery solution catering to bulk shoppers and price-sensitive consumers, represented by brands such as Colruyt and Finland’s S-Market.
The research said that while the neighborhood discount example is the most scalable due to its accessibility and simplicity, the full-basket value-led model offers the highest long-term profitability.
Retailers in the GCC face operational challenges
A comparative analysis of profit and loss statements between Western and GCC grocery retailers revealed structural differences.
Value-led retailers in Europe achieve high sales productivity and net operating profit after taxes through optimized cost structures, whereas GCC retailers face inefficiencies in supply chain management and lack the scale to maximize gross margins.
“Despite the difficulties associated with value-led grocery retail in the GCC today, the precedents set in European markets demonstrate that the landscape can shift rapidly once value-driven concepts begin to gain traction,” the report said.
Key strategies for success in the GCC market
To successfully implement value-led grocery retail models in the GCC, Oliver Wyman outlined key dimensions for consideration.
Retailers should focus on competitive pricing, efficient product assortments, and compelling promotions to attract consumers.
Streamlining supply chain operations and leveraging digital technology will enhance cost management and operational efficiency. Growth strategies should be aligned with demographic insights and geographic expansion plans to ensure scalability.
The future of value-led grocery retail in the GCC
The study underscores the growing significance of value-led grocery retail in the region. As disposable incomes fluctuate and consumer preferences shift toward affordability, retailers have a unique opportunity to establish themselves in this evolving sector.
By leveraging global best practices, adapting to regional nuances, and prioritizing operational efficiency, value-led grocery retailers can reshape the industry and drive long-term growth.
