INTERVIEW: Karim Sabbagh, DarkMatter CEO — why digital security threats are key issue for governments and businesses

DarkMatter CEO Karim Sabbagh explains why digital security threats are key issue for governments and businesses. (Illustration by Luis Grañena)
Updated 08 March 2019
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INTERVIEW: Karim Sabbagh, DarkMatter CEO — why digital security threats are key issue for governments and businesses

LONDON: Cybersecurity looks like becoming the big theme of this year, and maybe for many years to come.

In a survey in January by the World Economic Forum, the threat of cyberattack was mentioned as one of the most serious global threats by business leaders; in the Middle East it was an especially worrying concern, second only to the oil price as a perceived risk.

For Karim Sabbagh, that is both a worry and a business opportunity. “The impact on economies and societies is huge. One of the challenges we have as captains of industry and as citizens is that we’re fascinated by the ability we have to digitize things in our day-to-day lives. But the sad part is that for every dollar we spend on new digital enablement, we’re not spending enough on cybersecurity,” he said last week on the sidelines of the IDEX defense exhibition in Abu Dhabi.

Sabbagh is CEO of DarkMatter, the Middle East’s home-grown digital security firm. Amid the guns, tanks and desert camouflage gear at IDEX, he explained to Arab News why we should all be taking the threat of cyberattack much more seriously, and spending a lot more money to defend against it.

“I can show you a demonstration in our booth. I can interfere with your transport network, your airport operations or your power grid. All these things aren’t fiction, they’re all for real,” he said against a backdrop of simulated warfare displays in the UAE’s big defense show.

“The people with bad intent will continue to evolve their techniques and their approaches. So the question isn’t how do I completely eliminate the known risks, but how can I prepare for threats in the future.”

The “people with bad intent” are enemy governments, industrial spies, ransom seekers, or people who “subscribe to a cause,” he said.

“From what we’ve seen … state-led attacks were the most prevalent. In private organizations, it was more about accessing data and using that data for your own commercial benefit,” he added, leaving the distinct impression he knew far more than he was willing to say publicly.

DarkMatter has been in business since 2015, the brainchild of Faisal Al-Bannai, the Emirati entrepreneur probably best known for the Axiom chain of telecom stores he has made into one of the best-known names in Middle East retail.

“He’s the single shareholder, and what he does is quite unique,” Sabbagh said. “Faisal is an entrepreneur, very driven and very passionate, with all the traits you’d like to see from entrepreneurs. He likes to see things through, and has a very long-term view.”

Sabbagh became CEO of the company last year after a stint with SES, a Luxembourg-based firm that provides satellite communications services to the US and other Western governments.

Before that, Lebanon-born Sabbagh worked for many years in the UAE and Saudi Arabia as a partner at management consulting firm Booz & Co., specializing in telecommunications and media.

He takes a broad view of the digital communications business in the five business sectors DarkMatter serves.

“How do I come up with technologies, devices and applications that can give me peace of mind that communication on these devices is secure? As we were doing work on those things, we also started engagement in areas concerning digital transformation, and questions about how the government provides new services that are digitized to all its citizens and residents,” he said.

A key part of DarkMatter’s work is the interaction of humans with technology. Sabbagh cites a recent cyber-attack in Singapore, in which the country’s medical records were accessed and compromised.

After a lengthy audit, the authorities discovered there were two main reasons. One was that on the network there were patches and fixes that weren’t done. So there was something that belonged to the realm of known vulnerability that wasn’t attended to,” he said.

“The second one was human capital. Through human intervention that attack was enabled, not by design but by accident. It boils down to technology and humans, the story of humanity since we invented fire.”

Why is the threat of cyberattack so high up the list of concerns for the Middle East? Sabbagh examined this in a work he co-authored in 2008 entitled “Oasis Economies,” which examined the social tensions created in traditional Arab societies going through the modernization process. He feels the lessons then still apply today.

“My conclusion is that as you try to liberalize economies but try to preserve the social safety net, as you try to liberalize the way people go about their daily lives while preserving the culture, you’re constantly trying to manage these tensions,” he said.

Highly digitized and progressive Arab youths live side by side with more conservative forces, he added.

Smart nations and smart business can’t be truly smart unless they secure their communications.

Karim Sabbagh, DarkMatter CEO

“In one family, even one household, you move from a very traditional way of living to the kids being astrophysicists, building probes to land on the moon. I’m not exaggerating,” he said.

“We have a highly digitized young population, not like the ageing populations of the West. These digital tools are available to them and they can be very productive, but if used inadequately they can be very harmful. So it doesn’t surprise me that the awareness around cyber threats in the region is very pronounced, and rightly so.”

These issues are especially pronounced in Saudi Arabia, which is going through the rapid transformational process of its Vision 2030 reform plan.

The modernization strategy involves the creation of a series of hi-tech hubs such as NEOM, the $500 billion megaproject involving a highly automated conurbation in the Kingdom’s northwest.

“In the old world, the industrial technology and the information technology operated in two different environments, but today there’s a big intersection between them,” Sabbagh said.

“The bigger the intersection the more efficient these businesses are, but the downside is that there’s a bigger attack surface from a cybersecurity standpoint. So the more countries such as Saudi Arabia advance their digitization processes, the more advanced they’ll become, but the downside is that the attack surface expands.”

The solution, he believes, is “defense, defense, defense” against cyberattack. “The best attack is defense,” he added.

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BIOGRAPHY

BORN

Beirut, 1963

EDUCATION

MS in Technology Management from Columbia University

DBA (Doctorate) in International Business Management from the International School of Management (Paris)

MBA and BBA from the American University of Beirut

American Century University, New Mexico, US

CAREER

Regional director for strategy, Leo Burnett Middle East

Senior vice president, Booz & Co.

CEO, DarkMatter

------------

 

Expansion of DarkMatter into Saudi Arabia is one of the priorities for later this year, moving the firm outside its UAE base and complementing existing business centers in Canada, Finland and India. “Saudi Arabia is probably one of the markets we’ll look at very closely,” he said.

One line of defense Sabbagh unveiled at IDEX was the new version of DarkMatter’s successful Katim phone, an ultra-secure and virtually indestructible mobile device that the firm is aiming at the defense, energy and government sectors.

The first version of the device was a big commercial success, but the second is designed to operate in even more hostile environments, with the promise of total data security.

“It’s designed to military standards in terms of ruggedness. Our engineers ran over it in a truck, and I wasn’t amused until they showed me a video of the phone working afterward,” he said.

“You can immerse it in water for 30 minutes and it still works. If the phone detects any attempt to try to interfere with it, either physically or via software, the data stored on it will automatically self-destruct. It’s a leap forward for us,” he added, emphasizing the “quantum resistant crypto protocols” that DarkMatter uses.

What do governments, always protective of data security, think of the new device? “The government is one of the users, as well as businesses where you have critical infrastructure being deployed,” he said.

Sabbagh summed up DarkMatter’s essential business philosophy: “Smart nations and smart business can’t be truly smart unless they can secure their communications. If they aren’t secure I can access their communications, hack them and interrupt their operations. People can give me all the smart slogans they want, but if I can hack you and interrupt your information, that’s not a very smart proposition.”

 


Closing Bell: Saudi main index rises to close at 11,202

Updated 29 June 2025
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Closing Bell: Saudi main index rises to close at 11,202

  • Parallel market Nomu gained or 0.72% to close at 27,248.13
  • MSCI Tadawul Index rose 1.07% to close at 1,434.07

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 134.37 points, or 1.21 percent, to close at 11,202.64.

The total trading turnover of the benchmark index was SR5.08 billion ($1.35 billion), as 218 of the stocks advanced and 31 retreated. 

The Kingdom’s parallel market Nomu gained 195.03 points, or 0.72 percent, to close at 27,248.13. This comes as 57 of the listed stocks advanced while 30 retreated. 

The MSCI Tadawul Index gained 15.19 points, or 1.07 percent, to close at 1,434.07. 

The best-performing stock of the day was Saudi Industrial Development Co., whose share price increased 10 percent to SR30.14. 

Other top performers included Naseej International Trading Co., whose share price rose 9.99 percent to SR 96.00, as well as Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, whose share price rose 9.97 percent to SR 22.39. According to Tadawul, Cenomi Retail’s shares also jumped by 100 percent in two months despite a sell recommendation from research houses.

Specialized Medical Co. recorded the most significant drop, falling 1.88 percent to SR22.92.

Americana Restaurants International PLC — Foreign Co. saw its stock prices fall 1.26 percent to SR2.35.

Nahdi Medical Co. also saw its stock prices decline 1.24 percent to SR127.20.

On the announcements front, Etihad Atheeb Telecommunication Co., also known as GO Telecom, has announced its annual consolidated financial results for the period ending March 31.

According to a Tadawul statement, the firm recorded a net profit of SR223 million during the year, reflecting a 14.36 percent increase compared to the same period a year earlier. The climb is attributed to an increase in revenue of SR446 million, offset by a rise in the cost of revenue of SR320 million, an upsurge in expected credit losses on trade receivables of SR24.6 million, and a growth in general and administrative expenses of SR24 million. 

There was also a decrease in financing costs by SR690,000 due to the recognition of commission income on Islamic deposits during the current year, amounting to SR20 million.

GO Telecom has decided to distribute SR10.1 million worth of cash dividends to the company’s shareholders for the fiscal year ending on March 31. According to a Tadawul statement, the number of shares eligible for dividends stands at 33.99 million, with a dividend per share of 30 halals and a dividend percentage to the share par value of 3 percent.

GO Telecom ended the session at SR105.00, up 2.49 percent. 

The Saudi Exchange has approved Saudi Azm for Communication and Information Technology Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR30 million and 60 million shares. 

The company’s shares will remain listed on Nomu – Parallel market until the deadline for publishing the transfer document. 

The issuer is required to publish the transfer document within three trading days after the Saudi Exchange announces its approval of the transfer request. The transfer document will be accessible to the public for 10 trading sessions through the websites of the issuer, Tadawul, and the financial adviser.

Tadawul also approved Obeikan Glass Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR320 million and 32 million shares.


Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

Updated 29 June 2025
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Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

  • Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion
  • Umm Al-Qura for Development and Construction Co. raised $523.1 million

RIYADH: Saudi Arabia’s equity capital market maintained strong momentum in the first half of 2025, with six companies raising a combined $2.8 billion through initial public offerings on the main Tadawul exchange.  

According to an analysis by Forbes Middle East, leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region’s largest aviation listings.  

The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks — including regulations for special purpose acquisition companies — aimed at expanding funding avenues and enhancing private-sector participation. 

In its analysis, Forbes stated: “The momentum underscores investors’ growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh’s long-term bet on privatization and public market expansion under Vision 2030.” 

The flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent. The offering comprised 51.3 million ordinary shares, representing 30 percent of the company’s post-offering capital. 

“In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million),” the analysis added. 

A view of the sign showing the logo of Saudi Arabia’s Stock Exchange Market (Tadawul) bourse in the capital Riyadh. File/AFP

As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights. 

Diverse listings 

Forbes also highlighted several other notable IPOs that reflect diversification across key sectors. 

Umm Al-Qura for Development and Construction Co. raised $523.1 million by selling 130.7 million shares at $4 each — representing 9.09 percent of its total capital. 

The company leads the Masar destination project, a major development transforming the western gateway of the Holy City, featuring hotels, residential units, retail spaces, and infrastructure. 

Aligned with Saudi Arabia’s drive to boost religious tourism, the IPO proceeds will support ongoing construction, improve transport connectivity, and attract global hospitality brands in line with national tourism goals. 

Among the companies to list this year was Riyadh-headquartered SMC Healthcare, which raised $500 million through its Tadawul debut, reflecting growing investor appetite for healthcare stocks as the Kingdom expands private sector involvement in the industry. The IPO comprised 75 million shares priced at $6.70 each, representing 30 percent of the company’s total share capital. 

Derayah Financial, an asset management and brokerage firm, is another company that secured $399.6 million through its offering. Shares were priced at $8 each and attracted strong interest from both retail and institutional investors, supported by the company’s digital-first model and established brand presence. 

In February, Derayah offered 20 percent of its share capital — 49.9 million shares — through a listing on the Main Market, providing investors access to its expanding digital investment platform. 

The stock was listed in March. By the end of the first quarter, Derayah reported 555,000 client accounts, while assets under management rose 5 percent year-to-date to $4.8 billion. 

This year also saw United Carton Industries Co. raise $160 million by offering 12 million shares at $13.30 each, representing 30 percent of its capital. The company is expanding capacity to meet rising demand for corrugated packaging, a key input in Saudi Arabia’s growing industrial sector. 

Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO. The poultry producer floated 9 million shares, leveraging strong demand amid the Kingdom’s drive to enhance local food security. Entaj nearly doubled its daily processing capacity to 600,000 birds by the end of 2024. 

Regional dominance 

The rise in listings reinforces Tadawul’s position as the Arab world’s most valuable stock exchange. According to the Arab Federation of Capital Markets, the Saudi exchange accounted for 62 percent of total market capitalization across regional bourses in 2024, far ahead of the Abu Dhabi Securities Exchange, which held 18.6 percent. 

Tadawul's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month. Average daily trading value reached SR5.2 billion, while total monthly trading volume stood at SR119.6 billion, according to the Arab Monetary Fund. 

Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access. 

The Saudi stock market was among the region’s top performers in December, buoyed by improved liquidity and investor confidence. TASI closed the month at 12,037 points, with daily trading values averaging SR5.2 billion and total trading reaching SR119.6 billion, the Arab Monetary Fund reported.


Aramco cuts July propane, butane prices amid market shifts

Updated 29 June 2025
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Aramco cuts July propane, butane prices amid market shifts

  • Oil giant set propane at $575 per tonne and butane at $545 per tonne

RIYADH: Saudi Aramco has lowered its official selling prices for propane and butane for July 2025, reflecting changing global market dynamics.

In a statement released on Sunday, the oil giant set propane at $575 per tonne and butane at $545 per tonne—both down $25 from the previous month. The adjustment continues a downward trend driven by evolving supply-demand conditions.

Propane and butane, classified as liquefied petroleum gases, are essential fuels for heating, transport, and petrochemical production. Aramco’s monthly pricing serves as a key benchmark for LPG shipments from the Middle East to the Asia Pacific.

The global LPG market is undergoing a reshuffle as China shifts away from US imports due to steep tariffs, increasingly turning to Middle Eastern suppliers. In turn, American cargoes are being rerouted to Europe and other parts of Asia.

This realignment is putting pressure on global LPG prices and weakening demand for US shale byproducts, impacting both American shale producers and Chinese petrochemical firms. Meanwhile, the trend is spurring greater interest in alternative feedstocks like naphtha.

Middle Eastern exporters are benefiting from the shift, stepping in to fill the gap left by falling US exports to China. Buyers in Asia, including Japan and India, are also taking advantage of the softer prices to strike more favorable supply deals.


Egypt to offer Hurghada airport to private sector by end of 2025

Updated 29 June 2025
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Egypt to offer Hurghada airport to private sector by end of 2025

  • President El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships
  • Plan supports Egypt Vision 2030

RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.  

The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations. 

The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership. 

In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities. 

“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added. 

Egyptian President Abdel Fattah El-Sisi meets with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah. Facebook/Spokesman for the Egyptian Presidency

El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth. 

The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.  

El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.

The project is designed in line with international standards for safety, security, and environmental sustainability. 

The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights. 

According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity. 

Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show. 

Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa. 

The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers. 

The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality. 

These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience. 


Oman’s GDP grows 4.7% as non-oil sectors expand

Updated 29 June 2025
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Oman’s GDP grows 4.7% as non-oil sectors expand

  • Agriculture, services, and construction exports lead economic growth
  • Industrial activities rose 2.8% to 1.97 billion rials

RIYADH: Oman’s gross domestic product at current prices grew by 4.7 percent year on year in the first quarter of 2025, reaching 10.53 billion Omani rials ($27.3 billion), compared with 10.06 billion rials during the same period in 2024.

Preliminary data released by Oman’s National Centre for Statistics and Information attributed the increase primarily to stronger performance in non-oil activities, which grew 4.1 percent to 7.13 billion rials compared to 6.85 billion rials a year earlier.

Across economic sectors, agriculture and fisheries posted the highest growth rate, expanding 11.1 percent to 326.6 million rials. 

Industrial activities rose 2.8 percent to 1.97 billion rials, while services activities grew 4.2 percent with a total contribution of 4.84 billion rials to GDP.

Oil activities also contributed to the overall expansion, recording a 6.8 percent increase in value-added, reaching 3.71 billion rials by the end of the first quarter of 2025, up from 3.47 billion rials in the same period of 2024.

While crude oil activities declined 7.5 percent to 2.74 billion rials, natural gas activities saw a marked increase of 89 percent, with value-added rising to 970.8 million rials.

This performance comes as Oman continues to strengthen non-oil sectors and diversify its economy. 

Earlier in June, Credit Oman reported that insured non-oil exports reached 61.2 million rials in the first quarter, a 6 percent increase from the same period last year, driven by higher shipments of construction materials, petrochemicals, mining products, and agricultural goods.

Overall, the sultanate’s broader non-oil exports rose 8.6 percent to 1.61 billion rials, accounting for 28.6 percent of total exports.

The government is also pursuing fiscal reforms to support long-term growth. Under a royal decree, Oman will become the first Gulf country to introduce personal income tax, imposing a 5 percent levy on taxable income exceeding 42,000 rials per year starting in 2028. 

The measure is expected to apply to about 1 percent of the population.

Earlier in June, the country’s residential property market was reported to have shown renewed strength. 

Official data from Oman’s National Centre for Statistics and Information indicated that residential property prices rose 7.3 percent year over year in the first quarter, led by a 6.5 percent increase in residential land values, which form the largest component of the real estate index.

Apartment prices rose 17 percent in May, while villas gained 6.4 percent, and other residential units increased 2.2 percent. The overall residential real estate price index advanced 5.5 percent quarter over quarter.

The gains reflect a broader regional upswing in property activity during early 2025.