Gulf states reframe AI as the ‘new oil’ in post‑petroleum push

Gulf states are actively redefining national strategy by embracing AI as a cornerstone of post-oil modernization. Saudi Arabia, through its AI platform Humain, a subsidiary of the Public Investment Fund, has committed state resources to build core infrastructure and develop Arabic multimodal models. Concurrently, the UAE is funding its $100 billion MGX initiative and supporting projects like G42 and the Falcon open-source model from Abu Dhabi’s Technology Innovation Institute.

Economic rationale underpins this ambition. Observers suggest that broad AI adoption across GCC sectors, including energy, healthcare, aviation, and government services, could add as much as $150 billion to regional GDP. Yet, concerns persist around workforce limitations, regulatory maturation, and geopolitical complications tied to supply chain dependencies.

Interest in AI has also reached geopolitical levels. Gulf leaders have struck partnerships with US firms to secure advanced AI chips and infrastructure, as seen during high-profile agreements with Nvidia, AMD, and Amazon. Critics caution that hosting major data centres in geopolitically volatile zones introduces physical and strategic risks, especially in contexts of rising regional tension.

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China says the US used a Microsoft server vulnerability to launch cyberattacks

China has accused the US of exploiting long-known vulnerabilities in Microsoft Exchange servers to launch cyberattacks on its defence sector, escalating tensions in the ongoing digital arms race between the two superpowers.

In a statement released on Friday, the Cyber Security Association of China claimed that US hackers compromised servers belonging to a significant Chinese military contractor, allegedly maintaining access for nearly a year.

The group did not disclose the name of the affected company.

The accusation is a sharp counterpunch to long-standing US claims that Beijing has orchestrated repeated cyber intrusions using the same Microsoft software. In 2021, Microsoft attributed a wide-scale hack affecting tens of thousands of Exchange servers to Chinese threat actors.

Two years later, another incident compromised the email accounts of senior US officials, prompting a federal review that criticised Microsoft for what it called a ‘cascade of security failures.’

Microsoft, based in Redmond, Washington, has recently disclosed additional intrusions by China-backed groups, including attacks exploiting flaws in its SharePoint platform.

Jon Clay of Trend Micro commented on the tit-for-tat cyber blame game: ‘Every nation carries out offensive cybersecurity operations. Given the latest SharePoint disclosure, this may be China’s way of retaliating publicly.’

Cybersecurity researchers note that Beijing has recently increased its use of public attribution as a geopolitical tactic. Ben Read of Wiz.io pointed out that China now uses cyber accusations to pressure Taiwan and shape global narratives around cybersecurity.

In April, China accused US National Security Agency (NSA) employees of hacking into the Asian Winter Games in Harbin, targeting personal data of athletes and organisers.

While the US frequently names alleged Chinese hackers and pursues legal action against them, China has historically avoided levelling public allegations against American intelligence agencies, until now.

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China’s Silk Typhoon hackers filed patents for advanced spyware tools

A Chinese state-backed hacking group known as Silk Typhoon has filed more than ten patents for intrusive cyberespionage tools, shedding light on its operations’ vast scope and sophistication.

These patents, registered by firms linked to China’s Ministry of State Security, detail covert data collection software far exceeding the group’s previously known attack methods.

The revelations surfaced following a July 2025 US Department of Justice indictment against two alleged members of Silk Typhoon, Xu Zewei and Zhang Yu.

Both are associated with companies tied to the Shanghai State Security Bureau and connected to the Hafnium group, which Microsoft rebranded as Silk Typhoon in 2022.

Instead of targeting only Windows environments, the patent filings reveal a sweeping set of surveillance tools designed for Apple devices, routers, mobile phones, and even smart home appliances.

Submissions include software for bypassing FileVault encryption, extracting remote cellphone data, decrypting hard drives, and analysing smart devices. Analysts from SentinelLabs suggest these filings offer an unprecedented glimpse into the architecture of China’s cyberwarfare ecosystem.

Silk Typhoon gained global attention in 2021 with its Microsoft Exchange ProxyLogon campaign, which prompted a rare coordinated condemnation by the US, UK, and EU. The newly revealed capabilities show the group’s operations are far more advanced and diversified than previously believed.

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Scattered Spider cyberattacks set to intensify, warn FBI and CISA

The cybercriminal group known as Scattered Spider is expected to intensify its attacks in the coming weeks, according to a joint warning issued by the FBI, CISA, and cybersecurity agencies in Canada, the UK and Australia.

These warnings highlight the group’s increasingly sophisticated methods, including impersonating employees to bypass IT support and hijack multi-factor authentication processes.

Instead of relying on old techniques, the hackers now deploy stealthy tools like RattyRAT and DragonForce ransomware, particularly targeting VMware ESXi servers.

Their attacks combine social engineering with SIM swapping and phishing, enabling them to exfiltrate sensitive data before locking systems and demanding payment — a tactic known as double extortion.

Scattered Spider, also referred to as Okta Tempest, is reportedly creating fake online identities and infiltrating internal communication channels like Slack and Microsoft Teams. In some cases, they have even joined incident response calls to gain insight into how companies are reacting.

Security agencies urge organisations to adopt phishing-resistant multi-factor authentication, audit remote access software, monitor unusual logins and behaviours, and ensure offline encrypted backups are maintained.

More incidents are expected, as the group continues refining its strategies instead of slowing down.

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NATO highlights cyber vulnerabilities in European ports

A recent policy brief from NATO’s Cooperative Cyber Defence Centre of Excellence (CCDCOE) indicates that Europe’s civilian ports, which handle approximately 80% of international trade and support NATO logistics, are increasingly targeted by cyberattacks linked to state-affiliated actors. The report identifies a rise in disruptions affecting port access control systems and vessel traffic management across various countries, with suspected involvement from groups associated with Russia, Iran, and China.

The document notes that NATO’s current maritime strategy lacks formal mechanisms to engage with commercial port operators, who manage critical infrastructure exposed to cyber threats. It calls for updated strategic frameworks to improve coordination between civil and military sectors, and to enhance cybersecurity and resilience across digital, operational, and energy systems in ports.

The brief outlines common attack methods, such as denial-of-service, phishing, ransomware, and malware, which have affected numerous maritime organisations in 2024.

Key recommendations include:

  • Updating NATO’s 2011 maritime strategy to integrate cybersecurity and establish engagement channels with commercial port operators.
  • Establishing sector-specific intelligence-sharing frameworks to support timely incident response.
  • Developing coordinated public–private action plans and resilience measures at both national and alliance levels.

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Aeroflot cyberattack cripples Russian flights in major breach

A major cyberattack on Russia’s flagship airline Aeroflot has caused severe disruptions to flights, with hundreds of passengers stranded at airports. Responsibility was claimed by two hacker groups: Ukraine’s Silent Crow and the Belarusian hacktivist collective Belarus Cyber-Partisans.

The attack is among the most damaging cyber incidents Russia has faced since the full-scale invasion of Ukraine in February 2022. Past attacks disrupted government portals and large state-run firms such as Russian Railways, but most resumed operations quickly. This time, the effects were longer-lasting.

Social media showed crowds of delayed passengers packed into Moscow’s Sheremetyevo Airport, Aeroflot’s main hub. The outage affected not only Aeroflot but also its subsidiaries, Rossiya and Pobeda.

Most of the grounded flights were domestic. However, international services to Belarus, Armenia, and Uzbekistan were also cancelled or postponed due to the IT failure.

Early on Monday, Aeroflot issued a statement warning of unspecified problems with its IT infrastructure. The company alerted passengers that delays and disruptions were likely as a result.

Later, Russia’s Prosecutor’s Office confirmed that the outage was the result of a cyberattack. It announced the opening of a criminal case and launched an investigation into the breach.

Kremlin spokesperson Dmitry Peskov described the incident as ‘quite alarming’, admitting that cyber threats remain a serious risk for all major service providers operating at scale.

In a Telegram post, Silent Crow claimed it had maintained access to Aeroflot’s internal systems for over a year. The group stated it had copied sensitive customer data, internal communications, audio recordings, and surveillance footage collected on Aeroflot employees.

The hackers claimed that all of these resources had now either been destroyed or made inaccessible. ‘Restoring them will possibly require tens of millions of dollars. The damage is strategic,’ the group wrote.

Screenshots allegedly showing Aeroflot’s compromised IT dashboards were shared via the same Telegram channel. Silent Crow hinted it may begin publishing the stolen data in the coming days.

It added: ‘The personal data of all Russians who have ever flown with Aeroflot have now also gone on a trip — albeit without luggage and to the same destination.’

The Belarus Cyber-Partisans, who have opposed Belarusian President Alexander Lukashenko’s authoritarian regime for years, said the attack was carefully planned and intended to cause maximum disruption.

‘This is a very large-scale attack and one of the most painful in terms of consequences,’ said group coordinator Yuliana Shametavets. She told The Associated Press that the group spent months preparing the strike and accessed Aeroflot’s systems by exploiting several vulnerabilities.

The Cyber-Partisans have previously claimed responsibility for other high-profile hacks. In April 2024, they said they had breached the internal network of Belarus’s state security agency, the KGB.

Belarus remains a close ally of Russia. Lukashenko, in power for over three decades, has permitted Russia to use Belarusian territory as a staging ground for the invasion of Ukraine and to deploy tactical nuclear weapons on Belarusian soil.

Russia’s aviation sector has already faced repeated interruptions this summer, often caused by Ukrainian drone attacks on military or dual-use airports. Flights have been grounded multiple times as a precaution, disrupting passenger travel.

The latest cyberattack adds a new layer of difficulty, exposing the vulnerability of even the most protected elements of Russia’s transportation infrastructure. While the full extent of the data breach is yet to be independently verified, the implications could be long-lasting.

For now, it remains unclear how long it will take Aeroflot to fully restore services or what specific data may have been leaked. Both hacker groups appear determined to continue using cyber tools as a weapon of resistance — targeting Russia’s most symbolic assets.

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Tech giants back Trump’s AI deregulation plan amid public concern over societal impacts

Donald Trump recently hosted an AI summit in Washington, titled ‘Winning the AI Race,’ geared towards a deregulated atmosphere for AI innovation. Key figures from the tech industry, including Nvidia’s CEO Jensen Huang and Palantir’s CTO Shyam Sankar, attended the event.

Co-hosted by the Hill and Valley Forum and the Silicon Valley All-in Podcast, the summit was a platform for Trump to introduce his ‘AI Action Plan‘, comprised of three executive orders focusing on deregulation. Trump’s objective is to dismantle regulatory restrictions he perceives as obstacles to innovation, aiming to re-establish the US as a leader in AI exportation globally.

The executive orders announced target the elimination of ‘ideological dogmas such as diversity, equity, and inclusion (DEI)’ in AI models developed by federally funded companies. Additionally, one order promotes exporting US-developed AI technologies internationally, while another seeks to lessen environmental restrictions and speed up approvals for energy-intensive data centres.

These measures are seen as reversing the Biden administration’s policies, which stressed the importance of safety and security in AI development. Technology giants Apple, Meta, Amazon, and Alphabet have shown significant support for Trump’s initiatives, contributing to his inauguration fund and engaging with him at his Mar-a-Lago estate. Leaders like OpenAI’s Sam Altman and Nvidia’s Jensen Huang have also pledged substantial investments in US AI infrastructure.

Despite this backing, over 100 groups, including labour, environmental, civil rights, and academic organisations, have voiced their opposition through a ‘People’s AI action plan’. These groups warn of the potential risks of unregulated AI, which they fear could undermine civil liberties, equality, and environmental safeguards.

They argue that public welfare should not be compromised for corporate gains, highlighting the dangers of allowing tech giants to dominate policy-making. That discourse illustrates the divide between industry aspirations and societal consequences.

The tech industry’s influence on AI legislation through lobbying is noteworthy, with a report from Issue One indicating that eight of the largest tech companies spent a collective $36 million on lobbying in 2025 alone. Meta led with $13.8 million, employing 86 lobbyists, while Nvidia and OpenAI saw significant increases in their expenditure compared to previous years. The substantial financial outlay reflects the industry’s vested interest in shaping regulatory frameworks to favour business interests, igniting a debate over the ethical responsibilities of unchecked AI progress.

As tech companies and pro-business entities laud Trump’s deregulation efforts, concerns persist over the societal impacts of such policies.

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China issues action plan for global AI governance and proposes global AI cooperation organisation

At the 2025 World AI Conference in Shanghai, Chinese Premier Li Qiang urged the international community to prioritise joint efforts in governing AI, making reference to a need to establish a global framework and set of rules widely accepted by the global community. He unveiled a proposal by the Chinese government to create a global AI cooperation organisation to foster international collaboration, innovation, and inclusivity in AI across nations.

China attaches great importance to global AI governance, and has been actively promoting multilateral and bilateral cooperation with a willingness to offer more Chinese solutions‘.

An Action Plan for AI Global Governance was also presented at the conference. The plan outlines, in its introduction, a call for ‘all stakeholders to take concrete and effective actions based on the principles of serving the public good, respecting sovereignty, development orientation, safety and controllability, equity and inclusiveness, and openness and cooperation, to jointly advance the global development and governance of AI’.

The document includes 13 points related to key areas of international AI cooperation, including promoting inclusive infrastructure development, fostering open innovation ecosystems, ensuring high-quality data supply, and advancing sustainability through green AI practices. It also calls for consensus-building around technical standards, advancing international cooperation on AI safety governance, and supporting countries – especially those in the Global South – in ‘developing AI technologies and services suited to their national conditions’.

Notably, the plan indicates China’s support for multilateralism when it comes to the governance of AI, calling for an active implementation of commitments made by UN member states in the Pact for the Future and the Global Digital Compact, and expressing support for the establishment of the International AI Scientific Panel and a Global Dialogue on AI Governance (whose terms of reference are currently negotiated by UN member states in New York).

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US senator urges Musk to block Starlink use by Southeast Asian criminal networks

US Senator Maggie Hassan has called on SpaceX CEO Elon Musk to take immediate action against transnational criminal groups in Southeast Asia, which are allegedly using Starlink satellite internet to perpetrate massive online fraud schemes targeting American citizens.

In a letter seen by Reuters, the senator highlighted the growing role of Starlink in enabling so-called ‘scam compounds’ operated by criminal syndicates across Myanmar, Thailand, Cambodia, and Laos.

According to the US Treasury’s Financial Crimes Enforcement Network, the fraud networks have collectively cost Americans billions of dollars.

Senator Hassan emphasised that although SpaceX’s service rules allow for termination of access in cases of fraudulent activity, Starlink appears to remain active in regions where these scams flourish. She urged Musk to uphold SpaceX’s stated standards and take responsibility for cutting off illicit use of the service.

The scam compounds in question are more than just virtual hubs; reportedly, they are the sites of forced labour and human trafficking. Reports, including those from the UN, detail how hundreds of thousands of people have been trafficked into these centres, where they are coerced into operating elaborate online fraud schemes. These often target victims in the US and around the world through phishing messages, fake investment offers, and digital extortion.

The region has taken some steps to curb these operations. Since February, Thailand has actively disrupted resources such as electricity and internet to areas along its border with Myanmar, notably Myawaddy, where many scam centres are based. However, satellite services like Starlink can bypass these traditional infrastructure shutdowns, enabling fraud operations to persist despite regional crackdowns.

The criminal networks, many of which have roots in China, have also captured international attention due to high-profile cases. One such case was the January abduction of Chinese actor Wang Xing, who was kidnapped after arriving in Thailand and later rescued across the border in Myanmar by Thai authorities.

The incident further exposed these networks’ dangerous and organised nature, prompting broader calls for transnational cooperation and tech-sector accountability.

Source: Reuters

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Allianz breach affects most US customers

Allianz Life has confirmed a major cyber breach that exposed sensitive data from most of its 1.4 million customers in North America.

The attack was traced back to 16 July, when a threat actor accessed a third-party cloud system using social engineering tactics.

The cybersecurity breach affected a customer relationship management platform but did not compromise the company’s core network or policy systems.

Allianz Life acted swiftly by notifying the FBI and other regulators, including the attorney general’s office in Maine.

Those impacted are offered two years of credit monitoring and identity theft protection. The company has begun contacting affected individuals but declined to reveal the full number involved due to an ongoing investigation.

No other Allianz subsidiaries were affected by the breach. Allianz Life employs around 2,000 staff in the US and remains a key player within the global insurer’s North American operations.

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