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

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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 closes in red at 11,213 

Updated 14 July 2025
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Closing Bell: Saudi main index closes in red at 11,213 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Monday, falling 39.31 points, or 0.35 percent, to end the day at 11,213.59.

The total trading turnover on the benchmark index reached SR4.54 billion ($1.21 billion), with 60 stocks advancing and 190 declining.  

The MSCI Tadawul 30 Index also retreated, shedding 5.46 points, or 0.38 percent, to close at 1,436.97. 

The Kingdom’s parallel market Nomu declined by 80.73 points, or 0.29 percent, closing at 27,356.89. Of the listed stocks, 22 advanced while 56 retreated.  

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price rising by 9.91 percent to SR9.43. 

Other top performers included Saudi Industrial Investment Group, which saw its share price rise by 4.56 percent to SR17.42, and Al Hassan Ghazi Ibrahim Shaker Co., which saw a 4.48 percent increase to SR29.40. 

On the downside, Emaar The Economic City posted the steepest drop of the day, falling 4.12 percent to SR13.73.  

Naseej International Trading Co. fell 4.03 percent to SR102.50, and MBC Group Co. dropped 3.79 percent to SR34.02. 

On the announcements front, Jarir Marketing Co. reported estimated net profits of SR197.2 million for the first half of 2025, marking a 15.2 percent increase from the same period last year. 

In a statement on Tadawul, the company attributed the estimated increase to a 4.5 percent rise in gross profit, driven by higher sales of after-sales services along with improved profit margins and an increase in other income. 

Jarir’s shares gained 1.27 percent, closing at SR12.79.

Advanced Petrochemical Co. also announced its estimated financial results for the same period. The firm’s net profits were estimated to reach SR82 million, up by 95.2 percent from the same period last year. 

The company said that the increase was driven by an 8 percent rise in net revenues, lower propane and purchased propylene prices. 

Advanced Petrochemical Co. also announced the completion of construction and successful operational launch of its Propane Dehydrogenation plant, capable of producing 843,000 tonnes of propylene annually, along with two PolyPropylene plants operated by Advanced Polyolefins Industry Co. with a combined capacity of 800,000 tonnes per year. 

The facilities, located in Jubail Industrial City, mark a significant milestone in the company’s expansion in the petrochemical sector, according to a statement. 

APOC, a joint venture between Advanced Global Investment Co. and SK Gas Petrochemical Pte., will begin contributing to Advanced Petrochemical Co.’s consolidated financial results starting in the third quarter of 2025. 

Advanced Petrochemical shares closed 0.32 percent higher at SR31.48. 


Italian firm Webuild secures $600m contract as Diriyah project gains pace

Updated 14 July 2025
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Italian firm Webuild secures $600m contract as Diriyah project gains pace

JEDDAH: Saudi Arabia’s Diriyah Square project has awarded a $600 million contract to Italian construction firm Webuild, marking a major step forward for the Kingdom’s heritage-driven development.

The contract, awarded to a subsidiary of the Italian group — Salini Saudi Arabia — covers the construction of 70 buildings and public spaces within the mixed-use development, which forms part of the broader Diriyah master plan. 

With this latest award, Webuild’s total involvement in the sit, known as the City of Earth, now stands at roughly $2 billion, the company said in a statement. 

Diriyah Square is a central component of Diriyah Co.’s strategy to transform the historic district into a commercial, residential, and cultural hub. 

The project is one of five giga-projects backed by Saudi Arabia’s Public Investment Fund, aimed at reshaping the Kingdom’s economy and tourism offering under the Vision 2030 plan. 

Diriyah will contribute approximately SR70 billion ($18.6 billion) directly to the Kingdom’s gross domestic product, create nearly 180,000 jobs and will be home to an estimated 100,000 people. 

Diriyah Co.’s group CEO Jerry Inzerillo said: “Diriyah Square is one of our most exciting, anticipated and prestigious districts, and we are extremely pleased to have signed with Salini to deliver it, bringing their immense global experience to the table.”

He added that this marks another important milestone in their development journey, paving the way for Diriyah Square’s retail spaces to welcome a diverse range of visitors — from nearby residential communities and surrounding office hubs to the millions who visit each year.

The contract covers Package 3 Finishing and mechanical, electrical, and plumbing, delivering a pedestrian-friendly environment in traditional Najdi style across 365,000 sq. meters. Webuild is also working on the 10,500-space underground parking facility, awarded in 2022 and currently 55 percent complete, alongside structural packages 3, 6, and 7. 

According to Diriyah Co., the project aims to create a retail district showcasing 400 brands across retail, leisure, and dining.  

In a statement released by Webuild, CEO Pietro Salini said: “We are proud to be able to contribute to a project of such symbolic and strategic value for Saudi Arabia. Our presence in the Kingdom will be further strengthened by work that will have a positive impact on the area as well as the local community.” 

He added that the company has operated in Saudi Arabia since 1966 and has completed more than 90 projects.

“We continue to support the country to develop some of the most challenging infrastructure projects in the world, especially in sectors such as civil buildings, sustainable mobility, and desalination,” Salini said. 


BYD plans major Saudi expansion following Tesla’s market entry

Updated 14 July 2025
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BYD plans major Saudi expansion following Tesla’s market entry

RIYADH: Chinese electric vehicle giant BYD Co. is aiming to triple its presence in Saudi Arabia after Tesla Inc.’s recent market entry, the firm’s managing director for the Kingdom has announced.

Currently operating three showrooms, BYD plans to expand to 10 locations by late 2026, according to Jerome Saigot. 

The expansion comes after Tesla entered the Saudi market in April with a Riyadh showroom, joining BYD and fellow Chinese firm Geely.

The development aligns with Saudi Arabia’s broader strategy to establish itself as a regional EV hub, targeting 30 percent EV adoption by 2030 as part of its Vision 2030 economic diversification plan.

“Saudi is a complex market. You need to go fast. You need to think big,” Saigot said in an interview with Bloomberg, adding: “We are not here to stay at 5 (thousand) or 10,000 cars a year.” 

Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand, Ceer, and supporting charging infrastructure development. 

However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges, Bloomberg reported, citing data from PwC.

Saigot told Bloomberg that Tesla’s presence in the Kingdom was a positive development, helping to boost consumer awareness of EVs.

“The more Tesla communicates on marketing, the better it is for us,” said Saigot, who started at BYD in April after serving in previous roles at Nissan Motor Co. and Great Wall Motor Co.

BYD has been closing the gap with Tesla globally, outselling the US automaker in Europe for the first time in April. 

The Kingdom’s push toward electric mobility is gaining momentum, with Tesla’s recent market entry seen as a potential catalyst for faster adoption. Alessandro Tricamo, partner at Oliver Wyman, told Arab News in an interview earlier this month that nearly half of Saudis are now considering an EV purchase. 

“Tesla’s entry into the Saudi market is potentially a significant win-win situation,” he said, pointing to the brand’s appeal in a car-centric market and the company’s need to expand beyond declining Western sales. 

Also in an interview earlier this month, Taline Vahanian of Marsh UAE warned of risks for the sector, including battery degradation in extreme heat and costly insurance premiums, which could slow adoption.


Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

Updated 14 July 2025
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Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

RIYADH: Saudi Arabia’s Public Investment Fund has rise one place to 4th globally among sovereign wealth bodies, with assets surpassing $1 trillion, according to Global SWF’s July rankings.

PIF now ranks behind only Norway’s Government Pension Fund Global and two Chinese entities — the State Administration of Foreign Exchange and the China Investment Corporation — and surpasses the Abu Dhabi Investment Authority and the Kuwait Investment Authority.

The new ranking underscores PIF’s growing influence in global capital markets. 

Crown Prince Mohammed bin Salman has mandated the fund to grow its assets to $2 trillion by 2030, while generating long-term returns and supporting economic diversification. 

PIF’s assets under management climbed to $1.15 trillion in 2024, up from approximately $925 billion the previous year. However, net profit declined during the period due to rising operational costs, interest expenses, and asset write-downs linked to project delays and revisions, according to Global SWF. 

In response, the fund has shifted its strategy and is now prioritizing liquidity through short-term sukuk and commercial paper, while focusing on scalable, revenue-generating assets over high-cost mega-projects. This repositioning also includes increased investments in AI infrastructure, ETF platforms, and co-investments with global asset managers. 

Underscoring its international ambitions, PIF has invested about $200 million in a prime Manhattan real estate project with Related Companies, Bloomberg reported in July.

The fund plans to acquire a two-thirds stake in the 625 Madison Avenue site, where a 1,200-foot tower is under consideration, just steps from Central Park. 

The move builds on PIF’s earlier ties with Related, including a 2020 debt investment, and reflects its appetite for high-profile, long-horizon real estate in strategic global cities. 

Internationally, the fund holds stakes in prominent companies such as Lucid Motors, Nintendo, Uber, and BlackRock, and remains active across sectors including technology, mobility, and renewable energy, as well as gaming and sports. 

According to Global SWF, PIF is moving away from a strategy centered on rapid capital deployment, toward a more disciplined approach focused on financial sustainability, cost control, and delivering measurable returns. 


Egypt approves largest economic support package for SMEs worth $100.8m

Updated 14 July 2025
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Egypt approves largest economic support package for SMEs worth $100.8m

RIYADH: Entrepreneurs in Egypt’s priority sectors will soon gain access to affordable financing, as the 2025/2026 state budget earmarks 5 billion Egyptian pounds ($100.8 million) to support micro, small, and medium-sized enterprises.

This partnership between the North African country’s Ministry of Finance and the Micro, Small, and Medium Enterprises Development Agency, which accounts for the largest economic support in the new budget, represents a significant step in bolstering the private sector and productive industries, according to a statement.

This move supports financial policies that boost private sector activity and promote entrepreneurship, aiming for financial sustainability while enhancing MSMEDA’s contribution to business growth nationwide.

It also aligns with recent data showing that startups across the Middle East and North Africa raised $289 million through 44 deals in May, a 25 percent increase from April and a 2 percent rise year-on-year. Egypt led regional fundraising with $125 million, driven by Nawy’s $75 million round alongside seven other deals totaling $50 million.

The newly released ministry statement said the money “will contribute to providing easy financing for young entrepreneurs, targeting priority sectors more closely.”

It added: “This comes as part of a new phase of strong and effective cooperation with the agency, aiming to achieve financial sustainability for the agency to drive economic growth.”

The statement further revealed that Egypt’s Finance Minister Ahmed Kouchouk noted that an initial agreement with MSMEDA has been reached to fund initiatives that support tax relief beneficiaries, promote entrepreneurship, and boost local manufacturing, as well as empower low-income households and advance export-focused projects.

Kouchouk added that this fiscal year, the initial group of businesses enrolling in the simplified and unified tax system would receive access to preferential, low-cost financing.

Basel Rahmi, CEO of MSMEDA, commended the Ministry of Finance’s efforts to back emerging businesses and boost private-sector expansion.

Rahmi praised the minister’s proactive vision, noting it would open doors for empowering young entrepreneurs economically.

In June, a statement issued by the Ministerial Group for Entrepreneurship indicated that Egypt’s startup ecosystem saw notable progress in securing venture capital and debt financing in the first five months of the year, with tracked deals totaling $228 million since January.

The statement further revealed at the time that 16 deals were completed between January and May, with 11 of them publicly disclosing investments amounting to $156 million. These investments represented a 130 percent rise compared to the volume during the same period last year.