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A Post-Covid Arms Race?

It would seem counter intuitive that one of the key trends to emerge from a pandemic period that has killed millions is a doubling down on weapon investments. Yet that may be exactly what defines the post-Covid period of competition as the world enters an era characterised by competition between the US and Chinese and superpowers with their allies and adversaries alike being pulled into things in their wake.
Geopolitics is not the only driver of an emerging new arms race. Technology and the costs of maintaining a strategic advantage is demanding more money than ever for states to even keep the status quo. The world’s nuclear-armed nations spent a record $73bn on their weapons last year, with the US spending almost as much as the eight other states combined. The nine nuclear weapons states spent a total of $72.9bn in 2019, a 10% increase on the year before.
Certain weapon systems almost defy belief in their astronomical costs. The US, for example, wants to make sure it has the world’s best fighter plane. The F-35 Lightning II Joint Strike Fighter is estimated to be the most expensive weapons system in human history, based on its projected lifetime cost of $1.5 trillion dollars, $406 billion for the aircraft and the rest in lifetime operating costs.
The UK is spending more on its Defence whilst cutting the numbers of people in the armed forces, including a cut of 10,000 personnel from the army alone. Spending more on what would immediately seem to be less is the equation of modern military theory. The recent announcement that the UK would remove its cap on nuclear warheads will be hugely expensive but is only being done, according to the Defence Secretary Ben Wallace, due to the improvements to Russian anti-ballistic missiles which has altered the strategic balance forcing their hand.
Cyberwarfare is still a relatively new domain with potentially limitless costs when you consider just what’s needed to defend military and civilian networks let alone offensive capabilities. Likewise, the fact that space has become a new zone of geopolitical competition – see Trump’s creation of US ‘Space Force’ – with again vast cost implications if the logic is that China will need to increase investment each time the US does and vice a versa. An arms race is exactly that – a competition between entrants regardless of there being any end or satisfactory outcome beyond the historical analogy of the Soviet Union collapsing in its efforts to keep pace with the Americans in the 1980s.
Already the US Space Force received $15.4 billion in their 2021 budget request, that's about 60% of what the White House allocates to NASA. The flip side of such vast investments in weapons that if used may herald the end of times, is a cut in other aspects of a Government’s budget. In the UK case the aid and development budget are being slashed by a 1/3rd, leading some to argue that the Government is balancing its doubling down on strategic weapons on the backs of those on the edge of famine in countries like Yemen.
The UK argues that it cannot not react to hostile competitor states like Russia developing new weapons that alter the balance of global power. Already there has been much speculation about the Russians developing Cruise Missiles that have the ability to be constantly in flight. Essentially scrambling the warning times that countries would have before being attacked. If anti-ballistic defences render the current US and NATO nuclear weapon systems obsolete, then you can see how the argument is won for having to invest in entirely new ones.
Engaging in the arms race will likely be accompanied by utilising these new assets to probe for weaknesses in the enemy’s defences and like in a game of chess force them to take defensive steps they’d otherwise not have to invest in. We need to dust off the histories of the Cold War where stories of submarines playing cat and mouse in Atlantic Ocean trenches were juxtaposed to warplanes accidentally straying into adversary’s airspace, something that the Russians have been doing as a matter of routine in recent years.
The acceptance of both competition below the level of conflict being a norm combined with significant investments in arms that might soon reach “take off proportions” are significant parts of the modern geopolitical stage and are trends that must be watched closely.
James Denselow
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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