< Previous18 Vol. 25/04, April 2024 TECHNOLOGY “Too often people exaggerate mining’s energy impact. As an industry, we account for just 0.3 percent of global power usage, with over half coming from cleaner alternatives,” notes Alizadeh. “The consistent demand from our operations also helps utility providers manage variable loads on the grid.” Through strategic partnerships in the UAE, Phoenix secures competitive- ly-priced renewable energy supplies to power its growing facilities. Alizadeh emphasises that “as the industry evolves, we’re actively reducing our carbon footprint to set a benchmark for sustainable growth.” Regulatory collaboration Alizadeh approaches regulation not as a hindrance but as an opportunity to foster trust and long-term viability. Throughout Phoenix’s growth, he has proactively supported regional author- ities in crafting balanced frameworks. “Events like FTX prove why proper oversight protects users,” says Alizadeh. “Regulators want discipline and stabil- ity, which is also our goal. So we embrace guidance and work closely with them.” This collaborative approach proved instrumental in Phoenix establishing regional headquarters in Abu Dhabi Global Market (ADGM), the financial free zone. Alizadeh credits ADGM and other UAE authorities for spearheading “progressive yet prudent” rules that avoided stifling innovation. Beyond Phoenix, Alizadeh’s regu- latory advocacy extends through initi- atives like UAE’s first fully regulated crypto exchange, M2, which Phoenix $2.69TR The value of the global cryptocurrency market as of 18 March, according to data aggregator CoinGecko Sustainability remains a cornerstone of Phoenix’s ethos under Alizadeh’s leadershiparabianbusiness.com 19 TECHNOLOGY founded with key Abu Dhabi stake- holders. As crypto gains mainstream traction, he believes platforms like M2 can become global household names. “The leadership in Abu Dhabi deserves recognition for their foresight around crypto and blockchain’s promise years before others,” praises Alizadeh. “Their regulatory approach sets the stage for projects like ours to responsibly contribute to this new industry.” Building the future ecosystem While building a pioneering business, Alizadeh’s ambitions have always extended beyond any single venture. Through the $100m venture capital fund Cypher Capital and coworking facilities, his goal is actively mentoring the next generation of regional innovators. “Our hope is to incubate local start- ups and help turn them into global household names rooted here in the Middle East,” he reveals. Phoenix also acquired a 25 percent stake in the social networking and content monetisation platform, Lyvely. “Social ecommerce and the creator economy are growing exponentially, and our investment and strategic support backing Lyvely symbolises our commitment to shaping the future economy and supporting UAE home- grown tech startups.” Similarly, events and partnerships with universities seek to foster aware- ness and educate talent that will shape tomorrow’s decentralised economies. For Alizadeh, widespread knowledge is crucial to drive mainstream adoption. “Education is how mass participa- tion happens, which brings more awareness and unlocks the industry’s true potential,” he stresses. In sharing his experience pioneer- ing crypto internationally, Alizadeh aims to empower the builders of tomor- row. He believes the UAE’s progressive policies and vibrant startup scene posi- tion it well to forge the future globally, provided regional talent has the right cultivation and exposure. A region rises After a decade blazing trails, Alizadeh remains as optimistic as ever about the road ahead. Despite inevitable periods of volatility, his conviction in long-term trends like growing internet access, evolv- ing business models, and technology’s permeation into everyday life reinforce confidence in blockchain's trajectory. “We’ve come a long way, but still only around 5 percent of people own cryptocurrency – there’s massive poten- tial as more get exposed to this new digital economy,” he notes. Above all, Alizadeh credits the UAE government’s foresight in recognising blockchain’s promise and establishing an environment where this frontier can progress responsibly. “Abu Dhabi has superb infrastruc- ture and a welcoming regulatory envi- ronment, making it ideally suited to become a hub for crypto innovation in the region. The emirate recognises the potential of blockchain technology and is proactively cultivating the ecosystem to attract entrepreneurs and startups working in this transformational space,” Alizadeh explains. “The UAE is well-positioned to lead - not just in the Middle East but globally - by supporting the future of decentralisation, blockchain, and inno- vation and by supporting local entities to become globally recognised.” Phoenix Group established its regional headquarters in the Abu Dhabi Global Market (ADGM) The UAE is well- positioned to lead - not just in the Middle East but globally – by supporting the future of decentralisation, blockchain, and innovation 20 Vol. 25/04, April 2024 COVER STORY EUGENE KASPERSKY Words by Tala Michel Issa • Photography by Ajith Narendra How Eugene Kaspersky went from being a Soviet Army engineer to a global cybersecurity industry leader “Just after the collapse of the Iron Curtain, we had zero knowledge about the world abroad. When we started to build an international business, we made many mistakes,” he recalls. Kaspersky first developed an inter- est in computer viruses as a hobby in the late 1980s and early 1990s while working for the Soviet Army after grad- uating with a degree in mathematical engineering and computer technology. As he collected and studied computer viruses during his free time, he realised his hobby was slowly turning into an As I sit across from Eugene Kasper sky, it’s hard to believe that this unassuming man with an infectious laugh once worked as an engineer in the Soviet Army. Now one of the preeminent experts in cyberse- curity, Kaspersky took an unexpected path to become the CEO and driving force behind Kaspersky Lab, one of the largest private cybersecurity companies in the world, leaving behind an unrivalled legacy, but it wasn’t always necessarily meant to be. 20 Vol. 25/04, April 2024 THE VETERANarabianbusiness.com 21 EUGENE KASPERSKY COVER STORY arabianbusiness.com 21 EUGENE KASPERSKY COVER STORY When we started to build an international business, we made many mistakes 22 Vol. 25/04, April 2024 COVER STORY EUGENE KASPERSKY opportunity. “In 1991, I realised that since my hobby is turning into a busi- ness, little by little, because I saw that there’s some people, some companies they want to use my work,” he explains. But at the time, the Soviet regime prohibited people from running inde- pendent businesses. So, Kaspersky made the difficult decision to leave the security of a military career to work for a Russian IT company before venturing off on his own to set up a company based on his antivirus research. As Kaspersky acknowledges, he and his co-founders were naive about build- ing an international business. “We had zero knowledge in business, so we didn’t know what to do. We were engi- With operations in more than 200 countries and territories, Kaspersky Lab is a global company with focus on international markets “We didn’t have business schools at all in Russia – zero. We learned every- thing ourselves. We were just engineers.” Trained in the technical skills prized under Communism but not the business acumen needed in a capitalist system, Kaspersky and his team learned through trial and error. They made mistakes, both lucky and unlucky. But they were determined to leverage Kasper sky’s antivir us eng ine – recognised as world-class even then – to build a successful company. One smart early decision was to license Kaspersky’s powerful antivirus technology to competitors lacking robust security solutions. This provided crucial revenue to reinvest in develop- neers in Russia, unknown,” he says. “Under Communism, business was illegal. If you had your own private business, you could have ended up in jail. It was forbidden but there were private, illegal businesses, and from time to time, if they made too much money, there was a death penalty.” 400M The number of worldwide customers who rely on Kaspersky Lab’s expertise and cybersecurityarabianbusiness.com 23 EUGENE KASPERSKY COVER STORY Kaspersky’s team consists of more than 4,000 highly-qualified specialists ing consumer products that would carry the Kaspersky name. By the late 1990s, Kaspersky Lab was gaining trac- tion in Russia but remained unknown in most of the world. To change that, they took a big gamble in 1999 by exhibiting at an international IT conference in Germany called CeBIT. Kaspersky laughs as he recalls their tiny booth relegated to a corner near the bathrooms. “We had a very small booth close to the entrances of the toilet, but that worked in our favour because everyone would have to pass by.” But the unmatched quality of their technology spoke for itself. Each year they returned to CeBIT with an expanded presence, slowly working company with offices around the world. Though initially resistant to naming the company after himself, Kaspersky acknowledges that his reputation as an antivirus expert played a key role during the fragile early period. “We didn’t speak English. I used to carry two big dictionaries – Russian to English and English to Russian.” Even in the early days, Kaspersky demonstrated vision by focusing relent- lessly on superior technology instead of sales and marketing. When thinking back to the origins of the company, he stresses that “our goal was to make the best antivirus.” This philosophy contin- ues to guide the company today as the cybersecurity landscape grows increas- ingly more complex. Kaspersky worries that “the world is very fragile” due to dependence on vulnerable digital infra- structure never designed with security in mind. He sees cyber immunity through improved critical infrastruc- ture standards as the necessary solution in what he calls “Security by Design.” “In the mid-90s, there was no cybercrime. There were just hooligans, Under Communism, business was illegal. If you had your own private business, you could have ended up in jail towards the centre of the exhibition hall. This patient, persistent growth mirrored the steady expansion of their global customer base. As Kaspersky Lab grew, Kaspersky leaned on his then-wife to lead interna- tional sales and manage partnerships, compensating for their collective lack of business experience. He fondly recalls the guidance received from honest partners who became friends and taught them how the tech world operates beyond Russia’s borders. By the mid-2000s, Kaspersky Lab had established itself as a leading antivirus 24 Vol. 25/04, April 2024 COVER STORY EUGENE KASPERSKY vandals,” he recalls. But by the late 90s, the threat landscape was rapidly evolv- ing with the first email worms spread- ing malware like the infamous “I Love You” virus in 2000 – which he predicted ahead of time. “There was no cybercrime back then, except in a few professional cases, because there was no money on the internet. It was just kids creating computer viruses and the worst thing they could do was delete information or freeze computers.” After more than three decades on the front lines, Kaspersky has earned respect as both a pioneer and a vision- ary thinker in cybersecurity. But he has maintained the curiosity of that young Soviet army engineer staying up late to study computer viruses. This drive to understand the evolving technological landscape keeps propelling Kaspersky forward. While competitors come and go, Kaspersky’s commitment to “devel- oping visibly better technologies and products” remains a constant. The ‘economy’ of cyber criminals is constantly evolving Kaspersky is proud of the role the company plays in helping law enforce- ment investigate cybercrime, leading to many arrests globally. “We cooperate with cyber police forces to help them investigate cases and actually, there’s quite a lot of criminals who were arrested with our help – I don’t know how many, but I wouldn’t be surprised if it was about 1,000.” When looking at cybercrime, the most spoken language is Chinese, the cybersecurity veteran reveals, followed by Russian, Spanish and Portuguese, and then Turkish – among many others. He notes that the “most professional” gangs speak Russian, while the “most annoying” speak Chinese – referring to their persistent style of hacking. Kaspersky details how different regions seem to specialise in certain types of cybercrime, with Latin Amer- Kaspersky’s mission is to build a safer world where technology could help improve people’s lives $23.84TR The projected cost of global cybercrime by 2027, according to a report by database experts Statistaarabianbusiness.com 25 EUGENE KASPERSKY COVER STORY ica mainly carrying out financial fraud through “banking Trojans” and Chinese-speaking criminals using botnets to steal and trade information. While Russian gangs, on the other hand, are known for ransomware. Cyber criminals are now operat- ing like a global network, or an “industry” of sorts, learning from each other and playing different roles in carrying out attacks. “It’s like an economy but they don’t pay taxes. They work remotely, and in most cases they don’t know each other so they communicate only by internet. They work in groups where the first group hacks the victim or enterprise, the second group are financial criminals looking for infor- mation so they try to hack their finan- cial department. If they fail to do so, they bring in the ransom group which encrypts everything and gives access to negotiators. This is a problem because they are becoming more and more professional.” Still full of energy and ideas at 58 years old, Kaspersky doesn’t plan on stepping back from the company he built any time soon. “Maybe in 10 years,” he says with a laugh. But by surrounding himself with a team of trusted experts, he’s confident Kasper- sky is positioned for sustained success. As cyber threats grow more severe, the world needs the veteran perspective and technical acumen that only comes from experiencing firsthand the arc of cyber history. Thankfully, Eugene Kaspersky still eagerly comes to work each day, vowing to keep the world safe. “Don’t worry, I’m here,” he says. At 58 years old, Kaspersky doesn’t have any plans on stepping back from the company he built any time soon We had a very small booth [in CeBIT] close to the entrances of the toilet, but that worked in our favour because everyone would have to pass by 26 Vol. 25/04, April 2024 Panthère de Cartier watch, steel. Cartier Watches 26 Vol. 25/04, April 2024 CARTIER Perfect proportions Being a master of shapes is, above all, an exploration. What can be created with a square, circle, oval or rectangle? By measuring the effects of symmetry, parallelism or asymmetry, by adding perspective, by creating depth, French luxury house Cartier seeks to bring movement and a new life to every form. arabianbusiness.com 27 CARTIER 27 Tank Américaine watch, yellow gold and leather strap. Cartier Watches CARTIERNext >