The Invisible War: How Cyber Threats from State Actors Could Hit Gulf Data Centers First

State-sponsored cyberattacks are a growing risk for Gulf data centers. With the GCC's rapid digital transformation and investments in AI, smart cities, and finance, these facilities have become prime targets for nation-state hackers. The financial impact is severe, with the average cost of a cyberattack in the region reaching AED 25.4 million, far above the global average. Past incidents, such as the Shamoon virus and recent DDoS attacks, highlight the pressing need for stronger defenses.

Key takeaways:

• Gulf data centers are critical to national initiatives like Saudi Vision 2030 and the UAE Digital Economy Strategy.
• Major threats include ransomware, DDoS attacks, and Advanced Persistent Threats (APTs) from state actors like Iran and China.
• Outdated systems, insider threats, and extreme heat conditions expose vulnerabilities.
• Solutions include adopting Zero Trust architecture, AI-driven threat detection, and biometric access controls.
• Collaboration between governments, businesses, and regional cybersecurity programs is essential to counter these threats.

Actionable steps: Upgrade security frameworks, enforce strict access controls, and participate in regional initiatives like CyberE71 to safeguard operations. Gulf data centers must prepare for increasingly sophisticated and persistent cyber threats.

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State-Sponsored Cyber Threats Targeting the GCC

Gulf data centres have become prime targets for state-sponsored cyber attackers, drawn by their strategic importance. These attacks go beyond the typical scope of cybercrime, representing deliberate efforts by nation-states to achieve geopolitical goals through digital warfare.

"State-sponsored cyber attacks are malicious digital operations carried out by hackers who are either directly employed by a government or indirectly funded by one." - Luciano Mondragon, F-Secure

For state actors, cyber warfare is an appealing tool - it’s cost-effective, can be executed remotely, and offers plausible deniability. The Gulf Cooperation Council (GCC) nations, with their vital energy resources, rapidly growing digital economies, and pivotal geopolitical roles, are natural targets for such operations. These factors have led to a series of impactful cyberattacks, as detailed below.

Major State-Sponsored Cyberattacks in the Region

The GCC has faced numerous state-sponsored cyberattacks, each underscoring the serious risks posed by these threats. These incidents highlight a troubling trend of escalating aggression in the digital domain.

In 2019, Bahrain was hit by a series of cyberattacks. In August, hackers targeted the National Security Agency, Interior Ministry, and the office of the first deputy prime minister. American intelligence pointed to Iranian involvement. Just a month earlier, Bahrain's Electricity and Water Authority and Aluminum Bahrain, one of the largest aluminium producers globally, were also attacked.

In 2017, Qatar experienced a high-profile breach when hackers infiltrated the Qatar News Agency. They posted false statements attributed to Qatari leaders, exacerbating a diplomatic crisis within the GCC. This incident demonstrated how cyberattacks can fuel political tensions.

Ransomware has also surged across the Gulf. In 2021, several oil and gas companies in the region were targeted, resulting in operational disruptions and hefty ransom payments. Between 2021 and 2022, ransomware attacks hit 42 companies in the GCC, with the UAE accounting for 33% of these incidents and Saudi Arabia for 29%.

More recently, Advanced Persistent Threat (APT) groups have intensified their campaigns. In October 2024, Trend Micro reported that Earth Simnavaz (also known as APT34) had been targeting prominent Middle Eastern organisations. The group exploited vulnerabilities in Microsoft Exchange servers for credential theft and used CVE-2024-30088 to escalate privileges.

Attack Methods and Goals of State Actors

State-sponsored cyber attackers employ a wide range of methods to exploit vulnerabilities in the GCC. Their objectives often include:

• Cyber Espionage: Gaining unauthorised access to sensitive government data, corporate secrets, and political information.
• Infrastructure Disruption: Targeting critical systems like power grids, financial institutions, and communication networks to weaken an adversary’s defences and economy.
• Information Warfare: Manipulating online platforms to influence public opinion, disrupt political processes, and sow discord. The 2017 Qatar News Agency breach is a clear example of this tactic.
• Defensive Probing: Identifying vulnerabilities for potential future exploitation.

One example of the sophistication of these operations is the group known as CyberAv3ngers, linked to Iran's Islamic Revolutionary Guard Corps (IRGC). This group has targeted industrial control systems, including Israeli-made Unitronics Vision Series programmable logic controllers (PLCs) and human-machine interfaces (HMIs), which are critical to data centre operations.

Regional Threat Characteristics

The GCC’s cyber threat landscape reveals distinct patterns:

The GCC's rapid digital transformation - driven by investments in smart cities, financial technologies, and efforts to diversify economies beyond oil - has expanded its digital footprint. These advancements, coupled with the region's strategic position connecting Asia, Africa, and Europe, make Gulf data centres highly attractive targets for state-sponsored cyber operations.

Why Gulf Data Centers Are Easy Targets

The rapid push for digital transformation across the GCC has unintentionally created vulnerabilities that cybercriminals, particularly state-sponsored actors, are eager to exploit. Gulf data centres, housing high-value assets, often lack the robust defences required to counter these threats. With the average cost of a cyberattack in the region reaching US$8.75 million, the stakes couldn't be higher. These risks are amplified by gaps in both physical and digital security systems.

Physical and Digital Security Weaknesses

Many Gulf data centres rely on outdated systems and security frameworks. In the rush to embrace digitalisation, security often took a backseat, leaving these centres ill-equipped to handle modern cyber threats. As Osama Al-Zoubi, Vice President of Phosphorus Cybersecurity, points out:

"A central part of this plan involves updating outdated security frameworks. Many banks still rely on systems that were built without considering today's advanced cyber threats. By directing funds toward those systems, institutions can stay current in an environment where attackers constantly adapt."

Outdated systems are a major vulnerability, and 35% of successful attacks stem from exploiting these weaknesses. A glaring example is the CVE-2021-36260 vulnerability in Hikvision cameras, which the UAE's Computer Emergency Response Team (aeCERT) identified in 32% of exploitation cases. Beyond technical flaws, social engineering accounts for over 54% of successful attacks on organisations in the Middle East, while insider threats contribute to 23% of incidents in UAE organisations. Additionally, over 223,000 vulnerable assets were recently exposed in the UAE alone, significantly increasing the attack surface.

Operating Challenges in Extreme Heat

The Gulf's harsh climate adds another layer of complexity. Temperatures often exceed 50°C, pushing data centre equipment to its limits. This leads to more frequent component failures and system downtime. The urban heat island effect, which is rising by 0.1°C annually in coastal GCC areas, only worsens these challenges.

Energy demands further complicate operations. Cooling systems, which account for 40–50% of a data centre's energy costs, are critical but also represent a vulnerability. During extreme conditions, operators may prioritise keeping systems running over maintaining strict security protocols, inadvertently creating opportunities for cyberattacks. The table below highlights some of the supply chain challenges caused by these conditions:

Extreme weather events can also compromise recovery capabilities, especially for data centres already operating at full capacity. This lack of resilience leaves them highly vulnerable to cyberattacks during periods of heightened stress.

Security Approach Comparison

The security strategies employed by many Gulf data centres reveal critical flaws when compared to modern best practices. Traditional perimeter-based security assumes that once someone gains access to the network, they can be trusted. This outdated model leaves data centres vulnerable to threats like social engineering, vulnerability exploitation, and insider attacks, as attackers often face minimal resistance once inside.

In contrast, Zero Trust architecture offers a more resilient approach. Its core principle, "Never Trust, Always Verify", ensures that every user and device is continuously authenticated, regardless of their location, and only granted access on a need-to-know basis. Here's a comparison of the two approaches:

Globally, 76% of enterprises are adopting Zero Trust strategies. However, many Gulf data centres lag behind, leaving them exposed to sophisticated cyber threats. This gap is particularly evident in sectors like finance. Jamal Saleh, Director General of the UAE Banks Federation, highlights the risks:

"The rapid adoption and deployment of advanced technologies in the banking and financial sector have increased risks related to transaction security and digital infrastructure."

Ransomware attacks are another growing concern. The number of groups targeting UAE organisations increased from 12 to 19 in 2023, further underscoring the shortcomings of current security measures. Additionally, many data centres treat physical and digital security as separate entities, creating silos that attackers can exploit.

Addressing these vulnerabilities requires a comprehensive overhaul of security practices. Gulf data centres must tackle the unique challenges posed by their environment while preparing for increasingly sophisticated threats from state-sponsored actors.

How to Build Better Cybersecurity Defence

Creating strong cybersecurity defences against state-sponsored threats requires a well-rounded strategy that blends advanced technologies with regional regulations. Gulf data centres, in particular, need to move past traditional security models and adopt solutions that tackle sophisticated attack methods. The key is to establish layered defences that address both current vulnerabilities and future risks, ensuring a comprehensive and adaptable approach.

Implementing Advanced Security Frameworks

To combat state-sponsored threats effectively, advanced security frameworks are indispensable. One cornerstone of modern cybersecurity is Zero Trust Architecture, which operates on the principle of "never trust, always verify." This framework ensures constant verification of every user and device, regardless of their position within the network. Recognising its importance, the UAE Cyber Security Council has mandated that organisations adopt cybersecurity frameworks like NIST or ISO 27001 by 2025 to manage risks effectively.

AI-powered threat detection is another critical element. These systems process massive amounts of data in real time, identifying patterns that human analysts might overlook. Ram Reddy of Tech First Gulf elaborates on this advantage:

"TFG cybersecurity, along with Seceon, is designed for the Gulf's compliance and security needs, offering real-time threat detection, automated responses, and scalable solutions tailored to local compliance and security requirements."

Pratik Patel from Tech First Gulf highlights how AI-driven platforms outperform traditional Security Information and Event Management (SIEM) systems:

"With traditional SIEMs, finding actionable alerts from millions of logs is like finding a needle in a haystack. Seceon's AI-driven approach consolidates and automates security functions, allowing analysts to respond in real time."

Adding biometric access controls enhances physical security, particularly for data centres that handle sensitive government or financial information. When combined with multi-factor authentication for digital access, these systems create multiple layers of defence against unauthorised entry.

Unified Threat Management platforms provide a streamlined solution by integrating various security functions into one system. These platforms combine SIEM, Security Orchestration, Automation and Response (SOAR), Extended Detection and Response (XDR), and User and Entity Behaviour Analytics (UEBA). This integration not only improves threat detection but also reduces operational costs, making it a practical choice for Gulf data centres with smaller cybersecurity teams.

Leveraging Regional and National Cybersecurity Programmes

In addition to internal frameworks, regional and national initiatives play a crucial role in strengthening defences. The UAE and the broader GCC have made significant investments in cybersecurity. For instance, in April 2025, the UAE Cyber Security Council partnered with Google Cloud to launch a cybersecurity centre aimed at preventing AED 25 billion (approximately $6.8 billion) in cybercrime losses by 2030. This initiative reflects a strong government commitment to safeguarding digital infrastructure.

Cristina Pitarch, managing director of EMEA Google Cloud Security, emphasised this collaborative effort:

"Our shared goal represents a powerful combination of digital infrastructure, a hub for innovation, and a training ground for the next generation of cyber defenders."

National Cybersecurity Frameworks provide a structured approach, incorporating zero-trust principles, biometric access, and AI-based threat detection as standard practices. Aligning with these frameworks ensures compliance and access to shared threat intelligence and coordinated response capabilities.

Training and Skills Development programmes address the shortage of cybersecurity professionals. Initiatives like Saudi Arabia's Datacenter Academy and the UAE's "One Million Arab Coders" are equipping individuals with skills in cloud operations, cybersecurity, and data management. Data centres should actively engage in these programmes to build skilled teams and remain competitive.

Supply Chain Security Requirements have become a major focus under the 2025 regulations. Organisations are now required to evaluate their suppliers' cybersecurity practices to mitigate risks from external partners. For data centres, demonstrating robust security credentials can serve as a competitive advantage.

Information Sharing Initiatives between businesses and security agencies enhance collective defences. Data centres should integrate their Security Operations Centres (SOCs) with the National SOC (NSOC) to gain real-time threat intelligence and better coordinate responses. The CyberE71 initiative is a prime example of this collaborative approach. In 2025, the UAE Cyber Security Council partnered with Sia to drive CyberE71, a platform aimed at fostering innovation and supporting cybersecurity startups. Rafael Lemaitre from Sia commented:

"We are truly grateful for the opportunity to contribute to the national cybersecurity agenda through our support of the CyberE71. Since its inception, CyberE71 has been a powerful platform to nurture innovation, strengthen capabilities, and bring together a vibrant ecosystem across academia, startups, and government."

Security Tools and Providers Comparison

Choosing the right cybersecurity tools is crucial for addressing regional requirements and evolving threats. Here's a comparison of key solutions for Gulf data centres:

Proactive Security Strategies

As cyber threats grow more sophisticated, proactive strategies are essential. The UAE Cyber Security Council and CPX have reported a rise in AI-driven attacks, including phishing campaigns and breaches targeting critical infrastructure. To counter these threats, data centres must adopt measures like threat hunting, penetration testing, and continuous vulnerability assessments.

Post-Quantum Encryption is another area that demands attention. As quantum computing evolves, data centres should begin transitioning to post-quantum encryption to protect long-term sensitive data.

Incident Response Automation has become a critical tool for reducing the time between threat detection and containment. With a 47% global surge in cyberattacks during the first quarter of 2025 and ransomware activity up by 126% compared to the previous year, automated responses are vital for maintaining business continuity.

Future Threats and What to Do Next

As Gulf data centres navigate an increasingly complex cybersecurity landscape, the road ahead requires swift action and thoughtful planning. With state-sponsored cyberattacks growing more advanced, the ability to adapt today will determine which centres can withstand tomorrow's challenges.

New Attack Methods and Trends

The numbers speak volumes: state-sponsored attacks targeting critical infrastructure surged by 30% in 2023. A concerning trend is the rise of cyberattacks-as-a-service, where nations employ third-party groups to carry out operations, making it nearly impossible to trace the origins. In fact, nearly half of all security incidents - 49% - remain unattributed to any specific nation-state.

Supply chain attacks have also become a go-to strategy for sophisticated attackers. Instead of directly breaching data centres, these actors exploit vulnerabilities in third-party vendors and service providers, taking advantage of the interconnected nature of IT systems. Adding to the challenge, artificial intelligence is now a tool for attackers, lowering the skill barrier and enabling even inexperienced hackers to execute complex attacks. Mark Bowen captures the gravity of the situation:

"As the Middle East undergoes rapid economic growth and Digital Transformation across key sectors like finance, energy and government, the region faces a surge in cybersecurity threats."

Another alarming trend is the extensive use of pre-exploitation reconnaissance. Attackers often spend months quietly mapping networks and finding weak points, often with legitimate credentials. The Middle East's Cyber Threat Intelligence market reflects the urgency of these challenges, with projections exceeding US$31 billion by 2030.

With these evolving threats, Gulf data centres must rethink their strategies and act without delay.

Practical Steps for GCC Data Centres

Traditional security measures are no longer enough. Proactive, forward-thinking approaches are essential for Gulf data centres to stay ahead of emerging threats. Cybersecurity spending in the UAE is already on a steep rise, with an 11.2% CAGR projected between 2022 and 2027, and forecasts suggest it will surpass AED 4 billion by 2024.

One immediate priority is conducting regular risk assessments. Dr. Grigorios Fragkos from the Sharjah Cybersecurity Center underscores the importance of strategic adaptation:

"How do we CISOs adapt our strategies today? We need to start looking beyond the fog of what we have been carrying on, decision-makers of today and the next-generation should be looking and thinking outside the box."

Data centres must enforce strict patching schedules and implement the principle of least privilege to reduce vulnerabilities. In 2023, unpatched software accounted for 23% of worldwide security incidents. Building local talent pipelines is another critical step to fortify regional expertise and reduce reliance on external support.

Collaboration within the region could also provide a significant boost. Initiatives like the proposed "GCC Data Grid" - an interconnected fibre and storage network - could act as a safety net against both geopolitical and cyber threats. By participating in such efforts, data centres can strengthen collective defence mechanisms.

Speed is now a non-negotiable factor in cybersecurity. As Aus Alzubaidi from MBC Group explains, rapid response is essential to counter threats posed by GenAI and shadow IT:

"As a CISO one of my top priorities is managing expanded attacks due to GenAI and shadow IT, we need to get smarter and faster just having completed visibility and being able to move a machine speed is our top priority this year."

Failover architectures that replicate critical data across multiple locations - both within and beyond borders - are another must-have. These systems ensure operations continue even during prolonged cyberattacks or physical disruptions.

While immediate actions are crucial, securing the future demands a broader, long-term perspective.

Key Points for Long-Term Protection

The future of Gulf data centre security hinges on integrating cutting-edge technologies while staying rooted in proven security practices. The global market for AI in cybersecurity is expected to reach $298.5 billion by 2028, and the UAE is already making strides through strategic investments.

Preparing for post-quantum cryptography is one such forward-looking measure. Collaborations like the UAE’s partnership with the Technology Innovation Institute highlight the importance of staying ahead of emerging threats. Data centres should start evaluating their encryption protocols now and plan for a transition to quantum-resistant algorithms.

Another critical element is intelligence sharing. Private facilities must work closely with national security agencies to enhance threat awareness. By integrating with National Security Operations Centres (NSOCs), data centres can access real-time intelligence and coordinate responses more effectively than they could independently.

Ultimately, cybersecurity is not a one-time fix but an ongoing effort. State-sponsored threats will continue to evolve, and Gulf data centres must stay agile - investing in advanced technologies, skilled professionals, and regional partnerships to protect their operations in an increasingly volatile digital environment.

FAQs

How can data centres in the Gulf transition to a Zero Trust security model effectively?

Adopting a Zero Trust Security Model in Gulf Data Centres

For Gulf data centres aiming to strengthen their security, adopting a Zero Trust model is a smart move. This approach revolves around three core principles: continuous verification, strict access controls, and real-time monitoring. Here's how to get started:

• Identity and Access Management (IAM): Deploy robust IAM systems to verify the identity of users and devices before granting access.
• Micro-Segmentation: Limit lateral movement within the network by dividing it into smaller, isolated segments.
• Continuous Monitoring: Keep a close eye on network activity to identify and respond to unusual behaviour promptly.

The essence of Zero Trust is simple: assume no user or device is trustworthy by default. This mindset reduces potential vulnerabilities and strengthens the overall security framework. By implementing these measures, Gulf data centres can better safeguard critical digital infrastructure across the GCC, staying resilient against sophisticated threats, including those posed by state actors.

How do geopolitical tensions shape the frequency and focus of state-sponsored cyberattacks in the GCC?

Geopolitical Tensions and Cyberattacks in the GCC

Geopolitical strains in the GCC region, particularly involving nations like the UAE, Saudi Arabia, and Iran, have become a significant driver of state-sponsored cyberattacks. These cyber offensives often zero in on critical infrastructure, financial networks, and government systems, aiming to disrupt operations, extract sensitive intelligence, or sway public opinion during times of conflict or political unease.

The motivations behind these attacks typically fall into three categories: espionage, sabotage, or efforts to secure a strategic edge. With the region's increasing dependence on digital systems and its prominent geopolitical role, it remains a key target for hostile cyber operations. As tensions escalate, the frequency of such attacks rises, highlighting the urgent need for strong cybersecurity strategies to protect essential systems.

How do regional and national cybersecurity initiatives help protect Gulf data centres from state-sponsored cyber threats?

Regional and national cybersecurity initiatives are pivotal in protecting Gulf data centres from state-sponsored cyber threats. By emphasising teamwork, advanced solutions, and robust defences, these programmes create strategies to tackle vulnerabilities in critical infrastructure, ensuring data centres are prepared to fend off sophisticated attacks.

These efforts also prioritise regional cooperation, enabling the exchange of threat intelligence, improving incident response measures, and adopting cutting-edge security technologies. Furthermore, they focus on building a skilled workforce, equipping specialists to manage intricate cyber challenges and fortifying the security framework of the region's digital infrastructure.

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