By Heidi Crebo-Rediker, Senior Fellow for Geoeconomics, Council on Foreign Relations

In debates on economic security, cyber economics is too often overlooked. Many still frame cyber threats as company-level problems, where firms worry about ransomware, retailers fear stolen data, and banks focus on hacked payment systems. However, the more consequential danger is collective: cyberattacks on critical infrastructure with the power to unleash cascading disruptions across entire economies. This systemic risk remains under-appreciated, even as attacks grow in scope, sophistication, and geopolitical consequence.

From corporate risk to macroeconomic shock

The greatest danger lies not in a single server, but in the complex systems that underpin modern commerce. Electricity grids, water utilities, transportation networks, ports, airports, and undersea cables carry the weight of global connectivity. While automation and software increase efficiency, they also multiply vulnerabilities.

A prolonged disruption to any one of these systems can paralyze thousands of businesses. Multiple disruptions at once could be catastrophic. The 2021 winter storm in Texas, though caused by weather rather than malware, is a sobering example. The blackout cost up to $130 billion and crippled supply chains, health services, and agriculture. Imagine a hostile actor triggering similar failures via cyberattack, deliberately timed for maximum damage. The result would not only devastate individual entities but also generate a macroeconomic shock—akin to a natural disaster colliding with a financial crisis.

The growing threat landscape

State-backed hackers and criminal groups are already probing these vulnerabilities. The Colonial Pipeline ransomware attack in 2021 exposed how fragile logistics networks can be, while the more recent Volt Typhoon campaign embedded malware inside U.S. critical infrastructure. Unlike espionage, such intrusions appear designed to disrupt the civilian economy at scale, undermining both national resilience and military readiness.

The threat is also global. Attacks on undersea cables—vital arteries of the digital economy—are no longer hypothetical. With artificial intelligence accelerating offensive capabilities, adversaries can now identify weaknesses faster and automate attacks at scale. As a result, the risk curve is steepening, placing both advanced and developing economies in danger.

The field of cyber economics

Traditional economics treats cyber risk as a minor externality to be covered by insurance. In contrast, cyber economics reframes these risks as systemic. The more integrated and digitized an economy becomes, the more vulnerable it is to disruption. Elevating cyber threats from technical concerns to macroeconomic risks sharpens the case for sustained investment in resilience.

Without realistic, economy-wide accounting of costs, both governments and markets will continue to underinvest in defense and the skilled workforce required. Initiatives such as the Global Cybersecurity Forum–World Economic Forum Center for Cyber Economics, particularly when joined by institutions like the IMF, World Bank, and OECD, represent important first steps.

Who polices, who pays?

The governance dilemma complicates the picture. In the United States, most critical infrastructure is privately owned, meaning investment decisions often follow commercial incentives rather than national resilience. Large utilities may field advanced defenses, while smaller authorities lack the means to keep pace. Even the best-prepared firms cannot realistically deter state-backed attackers without government coordination and international collaboration.

Meanwhile, state-led economies often mandate cybersecurity standards and assume direct responsibility for protecting infrastructure. Liberal democracies, however, struggle to enforce baselines or require immediate reporting. Legal restrictions and fragmented oversight create uneven defenses, leaving the broader economy exposed to “weakest link” failures. The unresolved question of who ultimately pays—federal taxpayers, private firms, or local governments—further delays progress.

The allied dimension

Because cyber threats transcend borders, national strategies alone are insufficient. Attacks on shared assets such as undersea cables, power grids, or data networks ripple across continents. Therefore, allies must elevate cyber resilience as a shared economic security priority. Intelligence sharing, collaborative monitoring, and joint investment in defensive infrastructure can help close gaps that no single nation can address on its own.

A call to action

What is needed now is a paradigm shift. Policymakers, investors, and regulators must recognize that cyber threats to critical infrastructure represent potential macroeconomic shocks, not isolated corporate challenges. The rise of cyber economics highlights that in an interconnected world, cyber defense is economic defense. Ignoring this reality risks overlooking one of the defining macroeconomic threats of our time.

Read our previous post, H-1B visa fee hike rattles tech and global markets

By Mohanad Yakout, Senior Markets Analyst, Scope Markets

The sharp rise in the H-1B visa fee to $100,000 has triggered widespread debate across global markets. For decades, the H-1B visa has been a vital lifeline for U.S. companies seeking to attract top international talent and remain competitive. Now, the higher fee raises questions about the country’s ability to attract skilled professionals in a fiercely competitive global landscape.

H-1B visa fee hike challenges U.S. tech companies

Leading U.S. tech firms such as Amazon, Microsoft, and Google have relied heavily on foreign engineers and developers to fill critical skill gaps. With fees rising to $100,000 per application, hiring costs are set to double. Therefore, companies will likely reassess their strategies, reducing the number of visa applicants or shifting focus to overseas development centers in Asia and Eastern Europe.

These adjustments could slow innovation in areas such as artificial intelligence and cloud computing. Moreover, delays in launching new products may erode competitiveness and pressure stock prices, adding new volatility to already fragile markets.

Global ripple effects of the H-1B visa fee hike

The decision has also shaken global markets. Shares of major Indian IT firms, which rely on sending thousands of employees to the U.S., plunged following the announcement. As a result, companies in emerging markets now face uncertainty about future contracts and workforce mobility.

In parallel, alternative destinations such as Canada and Europe may attract skilled workers deterred by the high U.S. visa cost. These regions already offer more affordable and flexible immigration systems, giving them a competitive edge in attracting talent and enhancing their innovation capacity.

Long-term risks to U.S. innovation leadership

If sustained, the H-1B visa fee hike could fundamentally reshape the global innovation map. The U.S. has long been viewed as the world’s hub for advanced technology. Yet rising barriers to entry risk driving talent elsewhere. Consequently, countries with more balanced immigration frameworks may benefit from an influx of high-level professionals.

Unless new policies are introduced to ease the burden while protecting national interests, the U.S. risks undermining its own competitive edge. Balancing economic needs with regulatory control will be critical to safeguarding its leadership role in technology.

Investor concerns and market outlook

Investors are closely monitoring the fallout from the policy change. In the short term, higher costs may weigh on corporate earnings for U.S. tech firms while adding pressure on global IT service providers. In the medium term, global markets may realign as companies expand their operations in regions with friendlier immigration policies.

Importantly, innovation does not exist in isolation. The global distribution of talent will determine where breakthroughs occur and which countries dominate the next wave of technological development. The fee hike may accelerate that redistribution.

A defining moment for global talent policy

The U.S. government’s decision signals a turning point in how nations compete for talent. For the UAE and other regions positioning themselves as innovation hubs, the policy presents opportunities to attract highly skilled professionals seeking alternatives.

Ultimately, the H-1B visa fee hike is more than an immigration issue; it is a test of how nations balance openness, competitiveness, and regulation in a world where talent flows drive economic power. The outcome will shape not only company strategies but also the future geography of global innovation.

Check out our previous Space42 Sovereign Mobility Cloud to transform the UAE mobility

Space42 Sovereign Mobility Cloud will become the UAE’s first sovereign-enabled platform dedicated to advancing smart mobility and autonomous systems. Announced during the Dubai World Congress (DWC), the initiative is enabled by Core42’s Sovereign Public Cloud, leveraging Microsoft Azure.

By combining Space42’s expertise in AI-powered mobility with Microsoft’s secure cloud and logistics suite, the project will accelerate the deployment of autonomous mobility solutions while ensuring data sovereignty within the UAE.

Space42 Sovereign Mobility Cloud sets a global benchmark

Dr. Fan Zhu, Senior Vice President of Autonomous Mobility at Space42, emphasized the importance of this milestone: “The UAE has always led in technological innovation, and autonomous mobility is no exception. By building the nation’s first Sovereign Mobility Cloud with Core42 and Microsoft, we are setting a global standard for secure, trusted platforms in mobility and autonomous systems.”

Sherif Tawfik, Chief Partnership Officer – AI & Cloud for Sovereignty at Microsoft, added: “Microsoft Azure provides the secure foundation that powers the UAE’s Sovereign Mobility Cloud. This collaboration ensures compliance, confidentiality, and trust at the highest levels.”

Key features of the Space42 Sovereign Mobility Cloud

The initiative provides a trusted platform tailored to mobility and autonomous systems. Importantly, it delivers:

• -Secure hosting of mobility data under UAE regulations.
• -Platforms for HD mapping, telematics, fleet operations, traffic management, and digital twins.
• -Data-sharing frameworks across government, industry, and research stakeholders.

Furthermore, the program will introduce regulatory sandboxes, test hubs, and reference deployments in partnership with the UAE transport authorities.

Building complementary capabilities with Space42 Sovereign Mobility Cloud

Space42 will lead application deployment, liaise with regulators, and drive adoption through pilots and rollouts. Meanwhile, Core42 and Microsoft will deliver the sovereign-enabled foundation, ensuring compliance and data residency. In addition, Microsoft will provide training, technical expertise, and co-investment to grow the ecosystem.

This collaboration builds on earlier partnerships. For example, in July 2025, Space42, Microsoft, and Esri launched the Map Africa Initiative to create a continent-wide base map. Moreover, Space42’s geospatial AI platform, GIQ, is available on the Microsoft Azure Marketplace.

Advancing the UAE’s mobility ambitions

The UAE has positioned itself as a launchpad for next-generation mobility. Supported by infrastructure, governance, and regulation, it is creating a model for global transport innovation.

Space42 has already logged nearly 600,000 kilometers of autonomous driving and 20,000 passenger trips through its TXAI service. Beyond robotaxis, the company focuses on HD mapping, digital twins, and AI-driven fleet operations, ensuring innovation aligns with safety and best practices. Consequently, Abu Dhabi is becoming a hub for intelligent transport.

Why the Space42 Sovereign Mobility Cloud matters

The Sovereign Mobility Cloud ensures that critical transport data remains in the UAE, complying with regulations while fostering innovation. Therefore, it strengthens trust, protects sensitive information, and supports the nation’s long-term strategy for autonomous systems.

By combining national vision with technological expertise, the UAE and Space42 are building an ecosystem where AI-enabled transport benefits citizens and sets new global benchmarks.

Take a look at our previous post, ASUS Techsphere Forum: Making Every Company an AI Company