External threats to jump in the Middle East next year

• 87% of respondents anticipate they will experience one, with fraud noted by 25% of respondents as the biggest potential threat.
• 52% of the respondents expect to spend significantly in physical security next year, above the global average.
• Companies expect to invest more in emerging or cutting-edge technology in a year’s time but finding people with the appropriate skills were the most challenging.

External threats are expected to jump in the Middle East in the next year compared to last year due to economic and social unrest, according to a G4S report.

87 per cent of respondents anticipating they will experience one, with fraud noted by 25 per cent of respondents as the biggest potential threat.

The second biggest is malicious damage to company property, expected by 24 per cent of those surveyed.

In 2022, external threats were lower than the world average with 78 per cent having experienced an incident.

The most common was fraud, experienced by 22 per cent of respondents, followed by phishing and social engineering, impacting 20 per cent of those surveyed.

“The impact of hazards is expected to increase significantly in the coming year, anticipated by 91 per cent of companies. Economic unrest is expected to jump to 44 per cent and climate change hazards are also likely to rise, according to 41 per cent surveyed,” the World Security Report said.

Economic criminals

Threat actor groups impacted 69 per cent of companies in the Middle East over the last year, below the global average of 76 per cent and this is expected to jump in the next 12 months to 84 per cent.

“Economic criminals were the threat actor group that most affected the Middle East, reported by 41 per cent and above the global average, while 36 per cent said they were affected by subversives – hackers, protestors, or spies. The threat from subversives is expected to soar with 50 per cent expecting to be impacted, while the threat from economic criminals will also increase, according to 48 per cent,” the report said.

52 per cent of the respondents expect to spend significantly in physical security next year, above the global average and beaten only by North America.

Security budget priorities

“Domestic security concerns and rising operating costs are driving this. Security budget priorities will be focused on introducing new technology and training staff, reported by 59 per cent and 52 per cent of respondents, respectively.”

Moreover, basic or minimal technology is used by 42 per cent of companies, the highest of any region suggesting the Middle East is behind the curve in technology uptake.

Companies expect to invest in technology with 47 per cent reporting they want to be using emerging or cutting-edge technology in a year’s time. This lags the global ambition of 52 per cent.

Lack of internal expertise

“The biggest barrier to using technology was a lack of internal expertise reported by 44 per cent of companies, higher than the global average of 35 per cent. Over the next five years artificial intelligence (AI) and biometrics will be the biggest areas of investment, in line with global trends.”

However, the report cited that hiring the right people in the Middle East was less challenging than every other region apart from SubSaharan Africa, with 47 per cent of participants finding it extremely or very challenging to find the right people.

$1tr revenue lost

“Finding people with the appropriate skills were the most challenging according to 49 per cent of respondents. The three most important qualities in security professionals are: integrity and honesty, a strong understanding of technology and industry specific experience,” report said.

The world is an increasingly dangerous place and the hazards and threats that companies face are ever more complex and multidimensional.

 In 2022 alone, more than $1 trillion in revenue was lost by global companies as a consequence of internal and external physical security incidents and this is similar to the monetary impact caused by cyber incidents.

One in four (25 per cent) publicly-listed companies reported a drop in their corporate value in the last 12 months following an external or internal security incident.