Dr. Ali Mohammed Al Khouri
Abu Dhabi
Source: Emirates Thinkers
Prof. Dr. Ali Mohammed Al Khouri
With the growing global reliance on artificial intelligence (AI) as a driving force behind transformations across various economic sectors, national economies face complex and endless challenges. This progress is accompanied by complex cybersecurity challenges, making the protection of the nation’s resources and economic assets more important than ever. These realities require policymakers to understand the interconnected dimensions of increasing technological reliance and its associated security risks. They must also formulate strategies that balance maximizing technological potential with addressing potential risks that could threaten market stability, business operations, and national economic development.
The Impact of Cybersecurity on the Global Economy
Current estimates indicate that losses from cybercrime could reach $10.5 trillion annually by 2025, compared to losses of $3 trillion in 2015. This significant increase reflects the increasing frequency of cyberattacks, representing a clear challenge to trade and business, as well as the level of trust in digital environments and systems.
According to reports, financial institutions have become the most targeted by cyberattacks due to the sensitivity and high value of the data they handle. In 2023, they witnessed a sharp 72 percent increase in data leaks compared to the previous year. According to a report issued by the International Monetary Fund last April, attacks on financial companies accounted for approximately one-fifth of all cyberattacks, with banks remaining the most prominent target. An IBM report issued this year also showed that the financial services and insurance sector was the most vulnerable to cyberattacks in the Middle East and Africa in 2023, accounting for 44 percent of the total attacks in the region.
On the other hand, many government institutions have been subjected to cyberattacks in recent years, resulting in the leakage of sensitive data and the disruption of public services in various vital sectors. A prominent example of this is the announcement by government institutions in the United States, France, and Germany, in the first half of this year, that they had been subjected to “unprecedented cyberattacks” targeting shared networks and electronic systems. These attacks disrupted citizen service portals, transportation services, and energy networks, causing temporary power outages.
Overall, global reports reveal the inability of security and preventative measures to keep pace with the evolution of attacks, which have become increasingly difficult to detect and counter, despite the large budgets allocated by countries and companies to protect infrastructure in various sectors.
The Weapon of Artificial Intelligence
Artificial intelligence has added a new dimension to the cybersecurity equation. It is clear that it now plays dual roles that may conflict or complement each other, depending on how it is used. On the one hand, it represents an ideal tool that can be leveraged to support defenses and raise the level of efficiency, flexibility, and security preparedness. On the other hand, it may be used to develop malicious and unethical hacking techniques and diversify unpredictable attack methods, such as machine learning and deep fakes, which also make it more difficult to protect systems and information.
Recent studies show that generative AI—which can automatically generate new content and generate data similar to the data it has learned from—has created unprecedented capabilities for developing complex cyberattacks and executing them in ways previously unimaginable. This development has opened new horizons for cyberattacks, particularly in the execution of phishing and social engineering attacks using robots that operate and make their own tactical decisions.
The Global Response to Cybersecurity
Globally, there is a high level of awareness among governments and international institutions regarding the need to adapt to technological advances and adopt robust policies to address cyber challenges. However, overall, these policies vary from country to country.
According to some statistics, global spending on cybersecurity and IT risk management services is expected to reach approximately $200 billion this year, a 12 percent increase compared to the previous year. For the Middle East, cybersecurity spending is expected to reach approximately $36 billion by 2026, at a compound annual growth rate (CAGR) of 15.2 percent.
The increase in global spending, according to these statistics, indicates that cybersecurity has become a fundamental criterion reflecting countries’ readiness for the era of digital transformation. Cybersecurity has also become a cross-border challenge, with the emergence of high-tech tools that enable cyberattacks to launch from anywhere, targeting countries, companies, and infrastructure regardless of geographic location.
Strategic Recommendations for Policymakers
All of this data makes it clear that the road ahead for policymakers will be difficult, even thorny. Although solutions may seem feasible in theory, the solutions are far from being exhausting. Its implementation requires flexible and innovative strategies to achieve the required balance in the changing technology landscape and find practical ways to overcome the overlap between economic interests and cyber risks. The following six pillars present some of the axes that may support current national policy frameworks.
• Shifting from Regulation to Dynamic Adaptation
Policymakers should shift from regulatory frameworks based on traditional, static practices in security and risk management to dynamic, adaptive models that allow for the automatic and proactive updating of legislation and policies to address new technologies and evolving threats. Such models require ongoing monitoring and evaluation mechanisms by establishing institutional units to continually review policies and adjust them as needed to ensure their effectiveness and ability to address emerging threats.
A study by the global consulting firm McKinsey confirms this point. It showed that organizations that adopted a dynamic approach to their security policies were able to reduce cyber risks by 30 percent compared to those that relied on static institutional frameworks that were limited to periodic updates and only changed according to specific schedules.
• Interactive Information Networks
Creating interactive cyber platforms is an important pillar for transcending traditional information exchange mechanisms and enabling them to function as a smart security network. Such platforms provide public and private sector organizations with a digital environment to ensure the implementation of general controls to protect systems, monitor data traffic, detect threats, and enhance coordination regarding security breach reporting mechanisms.
International reports issued by the Organization for Security and Cooperation in Europe (OSCE) and the International Telecommunication Union (ITU) indicate that the presence of such platforms contributes to strengthening cyber capabilities and security resilience, enabling them to act as early warning systems, as well as developing advanced defensive response mechanisms at the national and international levels. This creates a safe environment for digital investment and builds individual and corporate confidence in institutional systems.
• Developing a New Generation of Competencies
The skills shortage in cybersecurity must be addressed. Despite technological advances, the need for human resources capable of supporting security preparedness remains. Reports indicate that this shortage could reach 3.5 million unfilled jobs by 2025. Investing in education and providing scholarships and incentives directed towards academic and professional security disciplines is a strategic necessity for developing competencies in the public and private sectors. So that they are able to keep pace with future cyber challenges and provide a solid foundation for strengthening digital security operations.
• Advanced Security Technology Laboratories
Government support should be provided to research and development centers and laboratories, as open environments for developing and testing advanced security technologies. This is another strategic step toward strengthening cyber defenses capable of countering modern and evolving threats. Such centers and laboratories can be a fertile environment for innovation and the production of solutions capable of countering advanced cyber threats.
Many governments have allocated significant budgets, in cooperation with the private sector, to fund research and the development of cyber defenses. For example, the Horizon Europe program, which aims to support the competitiveness of European countries, has allocated a large portion of its budget, nearly €100 billion, to cyber defense research and protection against growing digital risks. Both developed and developing countries are following this established approach, which combines scientific research and development, social and economic progress, and digital security.
