DAE becomes one of the world’s biggest aircraft lessors after buying Dublin-based AWAS
are no longer hacking into systems via the Internet, but using phones, obtaining information through visits, and impersonating thirdparty vendors or clients to target a facility and gain access to data that could compromise its network.
“Traditional network firewalls are just a small factor in the complex cybersecurity equation, and the health care industry must have a holistic view of security to win this particular cyberwar,” he said.
Greater network connectivity within the health sector through the Internet of Things (IoT) has been cited as a particularly vulnerable spot for hackers to exploit.
“The fallout from hospitals and medical companies not having adequate cybersecurity provision in place is potentially catastrophic, as major attacks and compromises can cost lives if a hacker remotely takes control of power, cooling systems or medical devices,” said Kolahzadeh
“It’s not just a case of data leaks or medical records being stolen, which is why health care facilities must think outside the box on cybersecurity.”
Scott Manson, cybersecurity lead in the Middle East and North Africa (MENA) for technology giant Cisco, said health care organizations prefer to flow data through a single network and use “logical segmentation” to separate different types of network traffic.
But he warned: “If this segmentation isn’t done properly, the risk of attackers gaining access to critical data or devices increases.”
He added: “Globally, ransomware attacks have already done damage to health care organizations. They’re an attractive target for online criminals who know health care providers need to protect patient safety at all costs. In health care, most decisions about security are driven by patient safety, outside of regulatory requirements and the protection of corporate assets.
“Leaders of health care organizations fear attacks that could take down mission-critical equipment, endangering patients’ lives. They’re also concerned that security measures designed to monitor online traffic and detect threats can slow down the flow of data in critical systems, undermining medical professionals’ ability to diagnose and treat patients.”
Experts say despite the life-anddeath risks involved, health care often ranks close to the bottom in terms of spending on information security.
“Health care devices are costly and intended to remain in place for several years, so their software and operating systems are often not updated as frequently, hence exceptions that allow them to adhere to different security protocols to operate reliably,” said Manson.
“The better approach, according to security experts, is to isolate and segment traffic between the network and mission-critical devices. Alternatively, organizations should improve their security infrastructure and network segmentation to better handle the exceptions that require compensating controls.”
Aisling Malone, professional indemnity and cyber lead for MENA at insurance giant AIG, said the expansion of electronic health records and digital health platforms, combined with wider use of connected devices, have made the health care sector “particularly vulnerable to security breaches and attacks.”
She added: “Across the GCC (Gulf Cooperation Council), we’re seeing an increasing number of companies, especially those who are potentially more exposed or sensitive to cyberattack, look to protect themselves by taking up cyber-insurance. Globally, this is one of the fastest-growing products we offer, and it clearly demonstrates the real threat that such attacks now pose to businesses.”
DUBAI: Ten years ago this month is taken by most economic commentators as the beginning of the global financial crisis, often labeled these days the GFC. When an event has its own acronym, you know it must be significant. After months of worry about falling asset values, tighter credit conditions and declining equity prices around the world, it was a relatively minor event at French bank BNP Paribas that blew the whistle on global financial markets.
The bank froze some $2.5 billion of assets, citing “evaporation of liquidity,” and that was that. Within a few months, that $2.5 billion would look like peanuts. Banks worldwide had collapsed or been bailed out to the tune of hundreds of billions of dollars.
The truly seismic shock came the following year when Lehman Brothers, one of the true “blue blood” banks of Wall Street, went bust in New York. It looked like the end of the world. Financial collapse and economic depression would spark a global conflict, it was suggested, in the same way the great crash of 1929 paved the way for World War II.
From the point of view of the Gulf, it seems strange to recall now that as the liquidators were moving into Lehman, economic policymakers and financial professionals were quietly congratulating themselves on how they had handled the crisis. Certainly, credit conditions were tighter and bank liquidity was low. But a series of measures by central banks and monetary authorities had shored up the system in the Gulf.
Many had guaranteed deposits and injected liquidity and capital into the financial system; most cut interest rates to ease monetary conditions. In any case, the energy exporters of the Gulf were in no way as badly off as their counterparts in the West. While American bank liabilities were secured against collapsing “toxic” assets, for example, Gulf banks had oil in the ground and cash in the bank.
But then came two events that showed that the region, for all its capital and energy wealth, was not immune to the global contagion. In May 2009, the Al-Gosaibi and Saad trading groups in Saudi Arabia went into financial nosedive.
Though there were special circumstances — allegations of fraud, forgery and theft — the dual collapse showed liquidity was desert-dry, especially for “name lenders,” which comprised a big proportion of credit in the Kingdom. The banks took a potential hit of $20 billion on the chin, but the affair, still rumbling on, left confidence brittle for years after.
Then in November, Dubai World, the government-owned conglomerate behind much of the DUBAI: Dubai Aerospace Enterprise (DAE) has become one of the world’s largest aircraft lessors after announcing on Sunday it had completed the acquisition of Dublin-based AWAS, the industry’s 10th-biggest firm.
The deal triples the Dubai government-controlled aircraft leasing and maintenance company’s portfolio of owned, managed and committed fleet to about 400 aircraft worth more than $14 billion.
That makes DAE one of the world’s top aircraft lessors behind the likes of General Electric and AerCap.
DAE will use the brand name DAE Capital to conduct its aircraft leasing business, the company said in a statement announcing the deal had been finalized.
DAE said last month it had raised $2.3 billion to finance the acquisition from private equity firm Terra Firma Capital Partners and the Canadian Pension Plan Investment Board (CPPIB).
DAE announced the acquisition in April, and later said it expected the deal to close in the early part emirate’s glittering infrastructure, announced it could not meet pending liabilities running into tens of billions of dollars. Although billed as a “standstill” at the time, it was actually a technical default, though some commentators had problems understanding that. “Dubai World in fresh revamp,” ran one local headline in the UAE.
International media and markets had no such problem. “Dubai shockwave hits global markets,” said the Financial Times as investors worldwide sold off equities and government bonds. It was the beginning of the sovereign debt crisis that hit Europe a year or so later, and which is still acting as a drag on the global economy.
But ironically, the damage done in the region by the Dubai debt crisis was less significant than its worldwide repercussions. Dubai, with little energy revenue but a thriving though highly leveraged commercial economy, was always a special case in the Gulf. The UAE rallied round Dubai World with a $20 billion loan, as did the emirate’s international bankers, who agreed to restructure its debts and those of other state-owned companies.
No significant financial institution in the Gulf went bust because of the Dubai World crisis. “Standing still, but still standing,” was how the Economist described the situation. Citibank economist-pundit Willem Buiter wrote of the “intrinsic unimportance of Dubai World.”
That does not mean the GFC did not have a profound effect on the region, but it was in terms of the broader economic fallout that the effects were felt. A region that lives on international commerce was badly shaken by the recession that followed the crisis. There was a wasted year in global trade before the Chinese pump-primed their economic system to take up the slack. Global trade levels have still not recovered.
The region has felt the ongoing effects in many areas. Credit has remained tight and bank lending has come under fresh regulatory scrutiny. The important real estate sector, which was severely hit in 2009, has yet to show a lasting recovery. Equity markets jumped back quite quickly, but now appear stuck in the doldrums.
However, the true regional legacy of the GFC lies with the oil price. Always the region’s most important fundamental indicator, it collapsed in 2008 on fears of recession, recovered briefly in 2011 then collapsed again — and more seriously — in 2014 on oversupply worries. The real significance of the GFC for the Gulf was that it put an end to a decade of almost unbroken increases in the price of crude.
Frank Kane is an award-winning business journalist based in Dubai. He can be reached on Twitter @frankkanedubai
Qof the third quarter.
“This acquisition of the best-inclass AWAS platform provides DAE with an enhanced market position,” DAE Chief Executive Firoz Tarapore said in the statement.
“This combined with our capital strength and our committed long-term ownership will allow us to provide a more comprehensive range of aviation fleet and financing solutions to our clients across the globe.”
The deal increases DAE’s number of aircraft-leasing customers to include 117 airlines in 57 countries.
Tarapore told Reuters in June the company would consider a jet order of more than 20 aircraft once the deal closed, and that he was interested in Airbus, Boeing and ATR aircraft.