Cyber warfare creates new opportunities

Dubai: A radical growth in cyber warfare investment and consequent cyber defence is an area to watch out for as it presents huge opportunities, experts in defence research say.

While global spending on defence is rising, the growth of internet penetration has generated a new stream of business involving cyber crime.

"It is a dynamic place to watch. There are a lot of traditional participants involved, but there are new entrants from the non-defence sectors of the industry that are capable in terms of digital activity," said David Fitzpatrick, a managing director in AlixPartners Aerospace and Defense Practice, a global advisory firm.

The firm provides expertise in aerospace, tele-coms and automotive. It said the region is the most important growth driver and opportunity for US defence companies and their international sales.

"Do not miss the boat for this spectrum of investment. It's going to be a huge area," said Fitzpatrick.

Saudi Arabia leads regionally in defence spending.

Riyadh's outlay rose 181 per cent in the past year, the firm said in a report.

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The UAE comes next as it continues to spend on the latest defence technology.

According to the Bureau of Industry and Security, the UAE's spending on defence procurement constitutes an average of about 8.5 per cent of its gross domestic product.

This translates into a military budget of $3.7 billion (Dh13.59 billion) in 1998 and $2.7 billion in 2005.

"Depending on geo-political position, if oil prices continue to deliver the budget surpluses, defence spending is always a high-priority here," said Eric Bernardini, a managing director at the advisory firm and co-leader of the firm's global Aerospace and Defence Practice.