Mideast undersea cable at heart of security scare as Russian navy floats around

Russian President Vladimir Putin attends a ceremony for Russia’s Navy Day in Saint Petersburg. Washington is worried about the presence of the Russian navy around key undersea cable sites. (AFP )
Updated 30 March 2018
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Mideast undersea cable at heart of security scare as Russian navy floats around

WASHINGTON: Russian ships are prowling around underwater communications cables, causing the US and its allies to worry that the Kremlin might be taking information warfare to new depths.
Is Moscow interested in cutting or tapping the cables? Does it want the West to worry it might? Is there a more innocent explanation? Unsurprisingly, Russia isn’t saying.
But whatever Moscow’s intentions, US and Western officials are increasingly troubled by their rival’s interest in the 400 fiber-optic cables that carry most of world’s calls, emails and texts, as well as $10 trillion worth of daily financial transactions.
“We’ve seen activity in the Russian navy, and particularly undersea in their submarine activity, that we haven’t seen since the 1980s,” Gen. Curtis Scaparrotti, commander of the US European Command, told Congress this month.
Without undersea cables, a bank in Asian countries couldn’t send money to Saudi Arabia to pay for oil. US military leaders would struggle to communicate with troops fighting extremists in Afghanistan and the Middle East. A student in Europe wouldn’t be able to Skype his parents in the US.
All this information is transmitted along tiny glass fibers encased in undersea cables that, in some cases, are little bigger than a garden hose. All told, there are 620,000 miles of fiber-optic cable running under the sea, enough to loop around the earth nearly 25 times.
Most lines are owned by private telecommunications companies, including giants such as Google and Microsoft. Their locations are easily identified on public maps, with swirling lines that look like spaghetti. While cutting one cable might have limited impact, severing several simultaneously or at choke points could cause a major outage.
The Russians “are doing their homework and in the event of a crisis or conflict with them, they might do rotten things to us,” said Michael Kofman, a Russian military expert at nonprofit research group CNA Corp. It is not Moscow’s warships and submarines that are making NATO and US officials uneasy but Russia’s Main Directorate of Deep Sea Research, whose specialized surface ships, submarines, underwater drones and mini-subs conduct reconnaissance, underwater salvage and other work.
One ship run by the directorate is the Yantar, a modest, 354-foot oceanographic vessel that holds a crew of about 60. Most recently the ship was off South America’s coast helping Argentina search for a lost submarine.
Parlamentskaya Gazeta, the Russian parliament’s publication, said last October the Yantar has equipment “designed for deep-sea tracking” and “connecting to top-secret communication cables.”
The publication said that in September 2015, the Yantar was near Kings Bay, Georgia, home to a US submarine base, “collecting information about the equipment on American submarines, including underwater sensors and the unified (US military) information network.” Rossiya, a Russian state TV network, has said the Yantar can not only connect to top-secret cables, but could cut them and “jam underwater sensors with a special system.”
Russia’s Defense Ministry did not respond to a request for comment. There is no hard evidence that the ship is engaged in nefarious activity, said Steffan Watkins, an information technology security consultant in Canada tracking the ship. But he wonders what the ship is doing when it is stopped over critical cables or when its Automatic Identification System tracking transponder isn’t on.
Of the Yantar’s crew, he said: “I don’t think these are the actual guys who are doing any sabotage. I think they’re laying the groundwork for future operations.” Members of Congress are wondering, too. Rep. Joe Courtney, a Connecticut Democrat on a House subcommittee on sea power, said of the Russians: “The mere fact that they are clearly tracking the cables and prowling around the cables shows that they are doing something.”
Democratic Sen. Gary Peters of Michigan, an Armed Services Committee member, said Moscow’s goal appears to be to “disrupt the normal channels of communication and create an environment of misinformation and distrust.”
The Yantar’s movements have previously raised eyebrows. On Oct. 18, 2016, a Syrian telecom company ordered emergency maintenance to repair a cable in the Mediterranean that provides Internet connectivity to several countries, including Syria, Libya and Lebanon. The Yantar arrived in the area the day before the four-day maintenance began. It left two days before the maintenance ended. It is unknown what work it did while there.
Watkins described another episode on Nov. 5, 2016, when a submarine cable linking Arabian Gulf nations experienced outages in Iran. Hours later, the Yantar left Oman and headed to an area about 60 miles west of the Iranian port city of Bushehr, where the cable runs ashore. Connectivity was restored just hours before the Yantar arrived on Nov. 9.
The boat stayed stationary over the site for several more days. Undersea cables have been targets before.
At the beginning of World War I, Britain cut a handful of German underwater communications cables and tapped the rerouted traffic for intelligence. In the Cold War, the US Navy sent American divers deep into the Sea of Okhotsk off the Russian coast to install a device to record Soviet communications, hoping to learn more about the USSR’s submarine-launched nuclear capability.
More recently, British and American intelligence agencies have eavesdropped on fiber-optic cables, according to documents released by Edward Snowden, a former National Security Agency contractor.
In 2007, Vietnamese authorities confiscated ships carrying miles of fiber-optic cable that thieves salvaged from the sea for profit. The heist disrupted service for several months. And in 2013, Egyptian officials arrested three scuba divers off Alexandria for attempting to cut a cable stretching from France to Singapore. Five years later, questions remain about the attack on a cable responsible for about a third of all Internet traffic between Egypt and Europe. Despite the relatively few publicly known incidents of sabotage, most outages are due to accidents. About 200 cable-related outages take place each year. Most occur when ship anchors snap cables or commercial fishing equipment snags the lines. Others break during tsunamis, earthquakes and other natural disasters. But even accidental cuts can harm US military operations.
In 2008 in Iraq, unmanned US surveillance flights almost came to a halt one day at Balad Air Base not because of enemy mortar attacks or dusty winds but because an anchor had snagged a cable hundreds of miles away from the base, situated in the “Sunni Triangle” northwest of Baghdad. The severed cable had linked controllers based in the US with unmanned aircraft flying intelligence, surveillance and recognizance missions for coalition forces in the skies over Iraq, said Ret. Air Force Col. Dave Lujan, of Hampton, Virginia.
“Say you’re operating a remote-controlled car and, all of a sudden, you can’t control it,” said Lujan, who was deputy commander of the 332nd Expeditionary Operations Group at the base when the little-publicized outage lasted for two to three days. “That’s a big impact,” he said, describing how US pilots had to fly the missions instead.


Lebanon’s economy recovery dependent on global support, stable ceasefire: Moody’s 

Updated 15 sec ago
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Lebanon’s economy recovery dependent on global support, stable ceasefire: Moody’s 

RIYADH: Lebanon’s economy is expected to start recovering this year following a 10 percent contraction in 2024, as the country returns to fully functioning institutions, according to Moody’s. 

On Jan. 9, the country elected former army commander Joseph Aoun as president, and followed that by appointing Nawaf Salam, chief of the International Court of Justice, as prime minister on Jan. 13. 

Aoun’s election ended a leadership void that had persisted since the previous president’s term expired in October 2022. 

“We estimate an economic contraction of 10 percent in 2024 because of the conflict but expect economic activity to start recovering later this year – assuming a permanent cessation of hostilities,” Moody’s said in a commentary. 

The Middle Eastern country’s return to fully functioning institutions will boost the continued enforcement of the ceasefire with Israel, supported by the monitoring role of the US, France and the UNIFIL, the agency added. 

Lebanon’s recovery requires substantial international support, a fact underscored by an international donor conference held in Paris in October. The conference raised $1 billion in pledges, with $800 million allocated for humanitarian assistance and $200 million earmarked for military support. 

These funds are expected to address the immediate needs of over 1.3 million people displaced during the September-November conflict, as well as the $8.5 billion in economic losses incurred, including $3.4 billion in physical damage to infrastructure, as reported by the World Bank. 

While these pledges offer a lifeline, the disbursement of funds will likely be contingent on the government’s adherence to reform commitments under a forthcoming International Monetary Fund program, Moody’s noted. 

These reforms include comprehensive debt restructuring for the government, the central bank, and commercial banks, aimed at ensuring long-term economic recovery and sustainability. 

“Lebanon’s current C rating reflects our expectation that holders of Lebanese eurobonds will recover less than 35 percent of par following the eventual eurobond restructuring,” the agency added. 
 
According to Moody’s, fiscal and investment activity has been sharply curtailed, undermining long-term growth prospects and the provision of public services. 

Tourism and remittances from Lebanon’s diaspora continue to serve as vital sources of foreign exchange, but they are insufficient to address the structural imbalances in the economy. 

Public debt, estimated at 150 percent of the gross domestic product by the end of 2024, remains one of the highest globally, presenting a formidable challenge to fiscal sustainability, noted Moody’s. 

Aoun’s election has been welcomed by international observers as a turning point for Lebanon, which has been mired in political paralysis, economic collapse, and the aftermath of recent conflicts. 

The new president will lead efforts to form a fully empowered government, replacing the current caretaker administration led by former Prime Minister Najib Mikati “that has been operating with limited powers.” 

Aoun’s leadership of the Lebanese Armed Forces was instrumental in enforcing the November ceasefire between Hezbollah and Israel, according to Moody’s. 

The ceasefire has been critical in creating a stable environment for Lebanon’s recovery. Observers note that the role of the armed forces in securing the truce reflects Aoun’s ability to command respect and cooperation from various stakeholders, a quality deemed vital for navigating Lebanon’s complex political landscape. 


NMDC Energy opens advanced fabrication yard in Ras Al-Khair

Updated 34 min 48 sec ago
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NMDC Energy opens advanced fabrication yard in Ras Al-Khair

JEDDAH: A new fabrication yard with an annual capacity of 40,000 tonnes has opened in Saudi Arabia’s Ras Al-Khair Special Economic Zone, marking a significant development for the Kingdom’s energy sector. 

The facility, built by NMDC Energy — a UAE-based provider of engineering, procurement, and construction services — is equipped with advanced automation and digital technologies, according to a press release. 

Valued at 200 million dirhams ($54.4 million), the new yard marks an important step in strengthening NMDC Energy’s regional presence and supporting Saudi Arabia’s energy infrastructure, it added. 

The project aligns with the country’s Vision 2030 goals, enhancing its capacity to produce energy solutions while driving industrial growth. 

“The inauguration of the Ras Al-Khair yard represents a bold and exciting new chapter for energy cooperation for both the UAE and Saudi Arabia, which will bring vast tangible benefits to both nations,” said Mohamed Hamad Al-Mehairi, chairman of NMDC Energy. 

He added: “We foresee vast opportunities to collaborate and to pursue projects in areas that will maximize the value of the resources in both our nations as well as ensure that the UAE and KSA remain leaders in the regional energy transition.” 

Ras Al-Khair, located in Eastern Province, is a key industrial region that contributes 60 percent of Saudi Arabia’s gross domestic product. The new yard is expected to further drive growth in the region, fostering investment, trade, and job creation in the energy sector. 

The facility was officially inaugurated at the iktva Forum and Exhibition 2025, with Prince Saud bin Nayef bin Abdulaziz, governor of Eastern Province, in attendance. 

Spanning 400,000 sq. meters, the new yard will focus on offshore facilities fabrication and onshore modularization, playing a key role in Saudi Arabia’s growing maritime and offshore cluster. 

The company has reinvested SR5 billion ($1.33 billion) in the Saudi economy over the past five years, supporting the Kingdom’s economic priorities and diversifying its industrial base. 

“At NMDC Energy, we understand that the essence of Saudi Vision 2030 is that it seeks a strong, thriving and stable Saudi Arabia. That’s why we’re looking forward to bringing 51 years of experience to create new opportunities for prosperity for both KSA and the UAE, as well as supporting new and existing clients across the wider region,” said Ahmed Al-Dhaheri, CEO of NMDC Energy. 

He added: “Through our projects and collaborations in Ras Al Khair, we can build upon Saudi’s national priorities by helping to diversify the national economy, creating skilled jobs and harnessing the full potential of the skilled labor force.” 


Mada cards propel Saudi e-commerce to $4.65bn, up 29%

Updated 34 min 56 sec ago
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Mada cards propel Saudi e-commerce to $4.65bn, up 29%

RIYADH: Saudi Arabia’s e-commerce sales using Mada cards reached SR17.44 billion ($4.65 billion) in November 2024, a year-on-year growth of 29.4 percent, according to recent data from the Saudi Central Bank.

This figure includes payments for online shopping, in-app purchases, and e-wallet transactions, but excludes payments made through credit cards such as Visa and MasterCard.

The rise in e-commerce activity aligns with Saudi Arabia’s goal to make digital commerce 80 percent of the retail sector by 2030, with 70 percent of transactions conducted online by the same year.

Mada, the Kingdom’s national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online. Mada cards play a crucial role in Saudi Arabia’s transition to a cashless economy.

In addition to the surge in sales, the number of e-commerce transactions also saw a significant increase, rising by 26.49 percent year on year to nearly 99 million transactions in November alone.

The spike in e-commerce activity in Saudi Arabia can be attributed to a combination of demographic and economic factors. With 60 percent of the population under the age of 30, the Kingdom is witnessing a growing trend toward digital consumption, largely driven by a tech-savvy youth demographic eager to embrace online shopping.

Furthermore, the expanding middle class and the rising influx of expatriates are contributing to greater financial capacity, while the growth of dual-income households further bolsters spending power.

This evolving economic landscape, paired with shifting consumer expectations for personalized and seamless digital experiences, is driving businesses to innovate and enhance their online offerings.

Ongoing infrastructure development—including the construction of new cities and modern shopping centers—adds to the momentum. As these trends continue, Saudi Arabia’s e-commerce sector is poised for substantial growth, reshaping the Kingdom’s retail environment in the coming years.

According to the latest data from the Ministry of Commerce, the Kingdom’s e-commerce sector saw a total of 40,953 businesses registered by the fourth quarter of 2024, reflecting a 10 percent year-on-year increase. Riyadh led in business registrations with 16,834, followed by Makkah and the Eastern Province. This uptick is a testament to Saudi Arabia’s push toward a digitally-driven, diversified economy, with e-commerce playing a central role in the transformation.

In parallel, the fintech sector also experienced notable growth, with the Ministry of Commerce reporting a 12 percent increase from the previous year. A total of 3,152 new fintech business registrations were recorded in the fourth quarter of 2024, highlighting the sector’s expanding role in supporting secure and seamless online transactions.

The growth of e-commerce and fintech is part of a broader trend of innovation across various sectors in Saudi Arabia. Recent reports highlight significant advances in cloud computing services, solar panel manufacturing, and real estate development—all in alignment with the goals of Vision 2030, which seeks to diversify the economy and promote sustainability.

With its rapidly expanding digital economy, Saudi Arabia is well-positioned to lead in the future of global e-commerce, as the country continues to embrace technological innovation and sustainability.


Saudi Arabia champions global collaboration and innovation at Future Minerals Forum

Updated 14 January 2025
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Saudi Arabia champions global collaboration and innovation at Future Minerals Forum

RIYAHD: Saudi Arabia has reaffirmed its commitment to addressing global challenges and fostering transformative change during a ministerial roundtable at the Future Minerals Forum.

Hosted in Riyadh from Jan. 14 to 16, the event is set to welcome government representatives from up to 90 countries, including 16 G20 nations, alongside industry leaders, NGOs, and international organizations in what is now its fourth edition.

This year’s gathering highlighted the need for significant investments of $6 trillion over the next decade to meet rising demand in the mining sector amidst challenges such as commodity market volatility and workforce gaps. 

Opening the roundtable, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the forum’s evolution as a collaborative platform for crafting actionable solutions to pressing global challenges. 

“Today, we embark on this year’s future reform, a moment to reflect on our shared achievements and set the stage for a future of meaningful impact. The evolution of this gathering is testament to the growing recognition of its importance and impact,” Alkhorayef said.

The minister also highlighted the diversity and depth of representation at this year’s event, which included government representatives and participants from the private sector, international organizations, and NGOs.

Representatatives from 89 countries gather at FMF. X/@FutureMineral

The roundtable addressed key challenges in the sector, including developing a strategic framework to harness the mineral wealth of Africa, West, and Central Asia for economic growth. 

It also focused on promoting sustainability by setting responsible supply priorities aligned with local conditions and enhancing transparency through supply chain certification. 

Additionally, the creation of Regional Centers of Excellence was highlighted to boost investments, develop skilled talent, and accelerate technological innovation.

Alkhorayef acknowledged the volatility in commodity markets and stressed the importance of stakeholder engagement and addressing the talent gap caused by an aging workforce.

Aligned with its Vision 2030 goals, Saudi Arabia is positioning the mining sector as a catalyst for sustainable economic growth. 

The Kingdom’s mineral wealth is estimated at $2.5 trillion, with untapped deposits of phosphate, gold, zinc, and copper,

The sector’s contribution to GDP is expected to increase to between $70 billion and $80 billion by 2030 from $17 billion currently, creating over 200,000 jobs. 


Egypt economy set for 4% growth despite regional tensions, says minister

Updated 14 January 2025
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Egypt economy set for 4% growth despite regional tensions, says minister

RIYADH: Egypt’s economy is on track to grow 4 percent in the current fiscal year, driven by ongoing structural reforms, according to the minister of planning and economic development.

In a meeting with the National Press Authority, Rania Al-Mashat confirmed the country was still on course to hit that figure — originally flagged in April — despite output from the Suez Canal being affected by regional tensions.

The minister also used the meeting to outline Egypt’s plans to enhance its investment climate, with the government seeking $4.2 billion in macroeconomic support from global partners.

This comes against a backdrop of a surge in foreign direct investment inflows, which reached a record $46.1 billion in the 2023/2024 fiscal year, compared to just $10 billion the previous year, according to data released by the Central Bank of Egypt. 

Al-Mashat also emphasized the government’s commitment to prudent investment management, highlighting that the public investment budget for the current year is capped at 1 trillion Egyptian pounds ($19.78 billion), with a focus on completing projects that are at least 70 percent finished, according to a release. 

Between 2020 and 2024, the private sector secured $14.5 billion in concessional development financing from global partners. For the first time, soft international financing for the private sector has surpassed government financing in 2024, Al-Mashat noted. 

The minister also disclosed that negotiations are underway with the EU and other international partners for a second phase of macroeconomic support, totaling €4 billion ($4.10 billion) in budget aid, alongside €1.8 billion in investment guarantees. 

She highlighted Egypt’s renewable energy progress, with the National Platform for the “NWFE” program securing $3.9 billion in financing for renewable projects. The program is set to add 4,200 megawatts of clean energy capacity and phase out 1,200 MW of thermal power generation. 

Al-Mashat also outlined the ministry’s long-term vision following the merger of planning, economic development, and international cooperation portfolios. The aim is to drive sustainable growth and improve the quality and quantity of economic development in line with Egypt’s Vision 2030 and other strategic frameworks. 

The government is currently drafting the 2025/2026 Socio-Economic Development Plan, aligned with the mid-term budget framework. She pointed out that efforts to restructure the National Investment Bank and manage debt with key institutions, such as the National Bank of Egypt and Egypt Post, are also ongoing. 

Despite stringent controls on investment spending, human development remains a priority. Al-Mashat noted that nearly 50 percent of the 2024/2025 investment plan — amounting to nearly 2 trillion pounds — will go toward public investments, with a significant portion dedicated to human development and water and sanitation projects. 

The minister concluded the meeting by pointing out the role of 54 joint committees that the ministry oversees, which are designed to promote economic cooperation and opportunities with other nations.