Smart Surveillance in the GCC: Key trends and outlook

Transcription

1 Smart Surveillance in the GCC: Key trends and outlook

2 Introduction The Gulf Cooperation Council (GCC) states are confronted with multiple factors that will continue to drive investments in smart surveillance systems and technologies. On one hand, they are situated in a region with complicated geopolitics and porous borders, and on the other, they have a collective aspiration to diversify their economies away from hydrocarbons and build world-class cities to attract investments and create jobs. The uncertain security environment has created the impetus for some countries and cities to adopt more stringent security regulations to improve city surveillance and secure critical state assets and infrastructure. These regulations are considered among the most potent growth drivers for investment in security and surveillance solutions going forward, ranking alongside increased investments in infrastructure driven by these countries economic diversification strategies. The current overall picture, however, is one that requires greater scrutiny. Even in the absence of comprehensive individual privacy laws typical in most Western European and Northern American countries, the adoption rate of smart surveillance systems, as well as the relevant business processes and policies, especially outside the military and critical sectors, still generally lags behind the most developed economies. Many organisations in the region also tend to adopt a product-focused (e.g. CCTV only) and not a solutions focused approach, which tends to create new areas of vulnerabilities that would require more resources to mitigate over the long term. In addition, global events such as the 2022 FIFA World Cup in Qatar and the 2020 Expo in Dubai will require the most advanced security and surveillance infrastructure within and outside the actual venues of these events and throughout these countries transportation infrastructure, hotels and other public spaces where residents and visitors alike will likely congregate during the entire period of these events. 02

3 Market structure and regulatory framework Outside Qatar, none of the GCC states have so far adopted an all-encompassing security regulatory framework under a centralised national agency. The most common framework is for the (MOI) following Interior or one of its attached agencies to oversee the security and surveillance infrastructure in critical sectors, particularly ports of entry and key industrial assets such as offshore and onshore oil and gas facilities. Other sectors such as hospitality, logistics, and retail generally practice self-regulation with the exception of Qatar, Abu Dhabi and Dubai, which already cover these sectors in their state or municipality security regulatory frameworks. Figure 1: Key stakeholders in the GCC smart surveillance market Security regulatory agencies implement regulations, guidelines and specifications for products and equipment, and provide pre-approvals to suppliers, certifications to security professionals, and track the security infrastructure in specified sectors. They include Qatar s Ministry of Interior - Security Services Department (MOI-SSD), Abu Dhabi s Critical National Infrastructure Authority (CNIA), Abu Dhabi Police, Abu Dhabi Municipality, Dubai Police Department of Protective Systems (DPS) and the civil aviation authorities in each country such as the UAE s General Civil Aviation Authority (GCAA) End users are the main consumer of surveillance products and services. They comprise government, state-owned corporations, and privately-held companies End-users Security Regulatory Authorities Security Consultants Security consultants conduct security risk assessment, gap analysis, and advise end-users in the design and implementation of security and surveillance infrastructure as well as in tender documentation and vendor selection Systems Integrators/ Contractors Technology providers Systems integrators & technology providers provide hardware and software solutions that meet the standards set by the regulatory authority and recommended by consultants and provide training and certification to security professionals. In most cases the systems integrators maintain the surveillance systems throughout their lifecycle Source: MEED Insight Research & Analysis 03

4 Figure 2: UAE Security Regulatory Agencies Dubai Other emirates DPS Municipality governments Abu Dhabi & Al-Ain UAE Aviation Sector CNIA Abu Dhabi Police Abu Dhabi Municipality GCAA Source: MEED Insight Research & Analysis In the UAE, the responsibility for surveillance in various sectors falls on several agencies. The Dubai Police is the main agency responsible for surveillance in the emirate, while the Critical National Infrastructure Authority (CNIA) and Abu Dhabi Police and Abu Dhabi Municipality are jointly responsible for surveillance in Abu Dhabi and Al-Ain. The other emirates have their own security and surveillance-related regulations and enforcement agencies. A federal-wide framework has been under discussion for several years, but has never been implemented. The country-wide aviation security policies and regulations, on the other hand, are handled by the UAE General Civil Aviation Authority (GCAA). The CNIA is responsible for handling the protection and security of Abu Dhabi s vital economic and industrial assets and infrastructure on both land and sea. Its remit includes oil and gas refineries, sea and air ports and transport vessels that arrive and leave the emirate s ports. All suppliers, personnel and projects that are related to surveillance across these sectors have to obtain approval, certification or clearance from the CNIA. The Abu Dhabi Municipality and Abu Dhabi Police, on the other hand, are responsible for city surveillance as well as monitoring other sectors in the emirate including hotels and schools. The Dubai Law No. (24) of 2008 mandated the Department of Protective Systems (DPS) of the Dubai Police as the main surveillance regulatory body in the emirate. The DPS issues individual licences to professionals such as security consultants, security engineers, auditors and even security guards, and provides approvals for all security service providers including security consultancies, traders of security devices and equipment, security and surveillance services, among others. The law has specified sectors whose security and surveillance systems are to be monitored by and have to obtain annual security compliance from the DPS (See figure 3). Non-compliance with the law entails penalties of up to $8,000 or non-renewal of a company s trading licence, depending on the gravity of the offence and the frequency of its occurrence. 04

5 Figure 3: Commercial entities requiring annual compliance certificates from the 1 Dubai Police Hotels & short-stay residence Financial & monetary institutions Manufacture & sale of precious metals & stones Shooting ranges, military & hunting equipment stores Shopping & leisure centres and department stores Precious & hazardous materials storage facilities Precious commodities stores & outlets Petrol stations Internet services Aircraft & balloon clubs Storage services It is worth noting that this law was enacted two years prior to the assassination of Hamas leader Mahmoud Al-Mabhouh in Dubai in It is believed that Dubai Police pored over footage from more then 1,500 CCTV cameras installed around the emirate to put together a flawless timeline and ultimately identify each of the assassins. Dubai Police has also recently issued an updated regulation making the installation of security surveillance in approximately 25,000 residential and commercial buildings and villas in the emirate compulsory. The agency has set a three-month compliance period starting on August 26, Non-compliance among building owners will be met with penalties. In Qatar, the Ministry of Interior (MoI) is the agency tasked with ensuring security and surveillance compliance across all sectors. Qatar s MoI established the Security Services Department (SSD) in August 2011 to implement the regulations on security and surveillance systems and cameras in specific locations across the country. The law in Qatar has made it obligatory for all security surveillance systems to utilise an open standard based on an Internet Protocol (IP) network system and megapixel as minimum recommended camera resolution. Furthermore, the state requires surveillance systems to have sufficient storage for a period of 120 days in MPEG-4 or H.264 format. It is noteworthy that the minimum video storage capacity even in some of the most developed countries today is 30 days. As a result, Qatar has earned the unofficial title of having the world s most demanding surveillance requirements. 1 Implementing By-Law and Decisions Related to Law No. (24) of 2008 Concerning Security Service Providers and Users 05

6 The Higher Commission on Industrial Security (HCIS), a division within the MOI, is responsible for Saudi Arabia s critical industrial infrastructure, which includes oil and gas, petrochemical and industrial manufacturing. HCIS monitors every project and infrastructure from the design stage until commissioning. Its involvement starts with the approval of the security and vulnerability assessment (SVA) document when a new structure is planned, and ends with the site acceptance test (SAT) when construction is completed. The HCIS jurisdiction is continually evolving and has very recently included Saudi Arabia s seaports. The General Authority of Civil Aviation (GACA), on the other hand, is solely responsible for monitoring the security and surveillance infrastructure at the kingdom s airports. Outside these sectors, a more informal approach to surveillance prevails due to what is generally perceived as a weak implementation of the kingdom s surveillance-related laws. In addition to the regulators, the other key stakeholders in the surveillance sector include security Consultants such as UK s Control Risks, US Kroll and regional firms Restrata (part of Olive Group) and Apex Consultants. These firms conduct security risk assessments and gap analysis on behalf of end-users. They also advise end-users in terms of standards and design as well as vendor selection. Furthermore, the largest technology providers and systems integrators such as Thales, IBM, UTC (formerly GE Security), Honeywell, Schneider/Pelco, Siemens, Johnson Controls, Cisco, ARINC and Axis Communications are all actively implementing surveillance solutions across the region usually through their international and local partners. Figure 4: Surveillance requirements across industries and sectors = Not commonly required = Limited requirement = Commonly required National Infrastructure (Homeland security, city surveillance, seaports & airports) Critical Industrial Infrastructure (Oil & gas, chemical, energy, power, water) Cultural and Commercial Projects (Business towers, 5-star hotels, malls & others) 1 IP Surveillance 2 Video analytics Products and Services Access control (card, gate, biometrics) Intrusion detection systems Perimeter security system Search and scanning 7 Vehicle surveillance 8 Command & control centre Source: MEED Insight Research & Analysis 06

7 Aligning policies, processes and technologies As cited earlier, critical infrastructure such as seaports, airports, metros, oil and gas facilities and the most iconic cultural and commercial buildings across the GCC states are thoroughly monitored by smart surveillance solutions. These facilities usually have in place advanced IP surveillance and perimeter security systems all the way through to centralised command and control rooms that are designed to aid in the prevention of unlawful intrusions and illegal activities. For example, one of the most advanced non-military surveillance installations in the region is used to monitor the density of pilgrims during the annual Hajj in Mecca, Saudi Arabia. Integrated and built by France s Thales, this system was designed to prevent accidents and stampedes when pilgrims cross over the Jamaraat bridge, where fatal crushes frequently occur. Qatar s ongoing $6.5bn The Pearl real estate project has also appointed Siemens to develop an integrated facility and security management system, incorporating CCTV surveillance, smart card access controls, wireless RFID personal identification, and automatic plate number recognition system. All these systems are centrally monitored by a command and control centre. Thales, in partnership with other systems integrators, has also supplied integrated security and communications solutions at Hamad International Airport (Doha), Dubai International Airport, to Saudi Arabia s GACA, and for the major rail and metro projects across the region. In addition, Dubai s Roads and Transport Authority (RTA) is planning to build a city-wide command and control centre to monitor all roads and transportation systems in the emirate. The planned command and control centre, which the RTA says would be similar to the one implemented by London for the Summer Olympics in 2012, will be operational by 2017, three years prior to Expo Outside the critical sectors, however, and especially outside Qatar, Abu Dhabi and Dubai, the general approach has been more relaxed. In Saudi Arabia, for instance, it is estimated that around 20 per cent of construction projects particularly for smaller hotels and other building infrastructure that install CCTV cameras do not install a monitoring system. Similarly, while a strong regulatory framework is desirable, it is not sufficient to ensure that end-users reap the optimum benefit from their investments. The adoption of business policies and processes that would allow end-users to maximise the benefits provided by a smart surveillance system is usually beyond the scope of these legislative frameworks. Most security consultants agree that a unified approach to smart surveillance adoption should ideally bring together various divisions within an organisation to include human resources, building management, IT and office administration, among others. Beyond capturing and storing images to aid in forensic investigation when security breaches occur, the data captured by these systems can be used proactively to improve an organisation s operational efficiencies. For example, CCTV cameras that monitor guests coming into a hotel s reception area may provide the training and development division with helpful input in terms of improving customer interaction. A similar training and development tool could be adopted by government agencies and utility companies that deliver basic public services. Intelligent video analytics technologies may also aid marketing and sales. Airports, for instance, may customise advertisements according to passenger data that appear on an airline s flight manifest. 07

8 Some city governments and project developers across the GCC have been very forthcoming with their goals to increase surveillance coverage including the number of CCTV cameras that will be eventually installed for this purpose. For example, some 25,000 CCTV cameras had been installed in Dubai as of 2011, covering about 90 per cent of the emirate s public areas. However, there may be cases when a similar approach could still fall short of the ideal strategy. A leading expert from a US-based consultancy explains that a smart surveillance solution is not so much about deploying the most number of cameras in a city as having those cameras strategically deployed and monitored by an intelligent video analytics system that could provide the end-user with a more effective solution to address or pre-empt potential security breaches. Technology providers, however, indicate that there has been a positive change in terms of how security and surveillance agencies take ownership of these projects. Dubai Police, for instance, regularly sends its engineers to attend new product launches, briefings and seminars to keep themselves well informed of current and future technology trends. One of the most advanced non-military surveillance installations in the region is used to monitor the density of pilgrims during the annual Hajj in Mecca 08

9 Future investments The large-scale homeland security and city surveillance projects are expected to contribute a major share in future spending on smart surveillance. In the UAE alone, the government has disclosed plans 2 to spend $1bn a year on homeland security over a 10-year period starting in A significant proportion of this planned investment will mostly likely be accounted for by integrated surveillance solutions. Figure 5: Estimated capital investment on surveillance across the GCC projects sector ( ), % 1, Total % UAE 80% Saudi Arabia 60% Qatar 40% Oman 20% Kuwait 0% Chemical Construction* Industrial Power Water Transport** Oil & Gas Bahrain *Construction sector includes hotels, hospitals, residences, retail or malls, commercial buildings, schools & universities, leisure facilities, government administration buildings, and cultural projects such as museums **Transport primarily consists of airports, seaports and metro or rail schemes Source: MEED Insight Research & Analysis Figure 6: Estimated projects-related surveillance investment by country ( ) ($m, %) Bahrain, 173, 4% UAE, 994, 24% Saudi Arabia, 1,299, 31% Kuwait, 595, 14% Oman, % Qatar, % Source: MEED Insight Research & Analysis Based on the pipeline of new and planned projects, MEED Insight estimates that spending on surveillance solutions, inclusive of equipment, software, design and installation services, across the GCC states core project sectors between 2014 and 2017 could reach $4.2bn or an average of $1.04bn annually. These estimates exclude retrofit investments such as the multi-million dollar project being initiated by Saudi Arabia s GACA to upgrade the security and surveillance infrastructure at the kingdom s domestic and international airports. It also excludes city surveillance projects and operations and maintenance (O&M) spending for existing infrastructure. 2 The Emirates News Agency (WAM), citing the Annual report of the US Department of Commerce s International Trade Administration, February

10 Capital investments in the form of equipment and software accounts for roughly 40 per cent of the estimated spending, while services account for the remainder. These estimates are based on the $141bn annual average value of projects expected to be awarded over the next four years in the chemical, industrial, oil and gas, construction, power, water and transportation sectors. The scope of investments include IP surveillance and CCTV equipment, access controls, physical intrusion detection systems (PIDS), perimeter security, video analytics and command and control rooms. Surveillance equipment includes explosion-proof cameras required in harsh and hazardous environments such as those found in the oil and gas and energy facilities. The construction sector, which includes hotels, commercial towers, government buildings and mixeduse developments, is expected to contribute 39 per cent to the forecasted spending, followed by the transport, and oil and gas sectors. The largest transport projects comprise new airports and seaports as well as the multi-billion dollar railway and metro schemes being built across the GCC. SWOT analysis In general, the increasing awareness of the benefits offered by smart surveillance and the evolving adoption of legislative frameworks ensure investment on these solutions will remain robust over the coming years. However, some obvious weaknesses have to be addressed including the slow or selective implementation of security-related regulations in certain countries and the need to align business processes and technologies to optimise the benefits that can be had by end-users from their investment in surveillance systems. Growing awareness of surveillance benefits Availability of resources Presence of the largest consulting & technology providers to provide guidance in the design and implementation of surveillance solutions Slow or selective implementation of surveillance policies for non-critical sectors Lack of alignment between processes and technologies Lack of a central surveillance monitoring agency Increasing ownership attitude among regulatory and enforcement agencies Regulatory requirements driving surveillance adoption particularly in Abu Dhabi, Dubai and Qatar Strengths Opportunities SWOT Weaknesses Threats Price-sensitivity among small-medium enterprises (SMEs) Major transport projects particularly seaports and airports will drive spending on end-to-end smart surveillance solutions Global events such as the 2022 FIFA World Cup in Doha and the Dubai Expo 2020 will challenge the existing infrastructure and allow the installation of the most advanced solutions and applications Growing political instability in countries such as Syria, Iraq and Iran and the potential for political instability to spill over into some GCC states and disrupt their economic diversification and investment plans 10

11 Smart Surveillance in the GCC Strategy consulting and sector contact If you are interested in talking to MEED Insight about your international growth and expansion initiatives, or about any of our other strategy consulting services, please contact our specialists and publication contributors below: Sari Alabdulrazzak Head of Advisory Service Jennifer M. Aguinaldo Associate Consultant MEED Insight Telephone: +971 (0) Who is MEED Insight? MEED Insight is the consulting arm of the MEED business. It provides bespoke market research, business plans, feasibility studies and corporate strategy development studies to help our clients make more profitable and better informed business decisions. MEED Insight has access to a wealth of regional information ranging from broad macroeconomic statistics to specific sector data to help its clients accurately and cost effectively forecast market growth and trends. The following includes a list of our customised offerings: Corporate and competitive strategy Customer and market strategy Commercial due diligence services Country risk assessment Location strategy and site optimisation services Partner/supplier selection and screening Business planning and feasibility services About MEED MEED has been delivering news, intelligence and analysis on the Middle East economies since Attracting a senior management audience through its content and events, MEED is a business information provider that covers all sectors of the region s economies. MEED gives business leaders the inside track. Through our portfolio of intelligence products in print, online and via specialist events, MEED customers have access to actionable intelligence and insights, high-level networking opportunities and exclusive commentary from the region s industry leaders.

12