‘New tech’ to impact financial markets in the Middle East

Will optimize business performance and transparency
‘New tech’ to impact financial markets in the Middle East
AI and blockchain will revolutionize financial markets in the region

Financial markets in the Middle East will benefit from increased investments in technologies such as Artificial Intelligence (AI) and blockchain.

Ritu Singh, regional director of Stone X group, said: “While the specific investment capital dedicated to AI and Blockchain in this part of the world is not clear yet, their projected impact and the region’s advancements indicate a growing interest and investment in such transformative technologies, which contributes to reshaping the financial landscape.”

Referencing a PwC report, Singh added that AI, for instance, has the potential to disrupt financial markets and foster the creation of innovative services and business models in the region.

The report estimates that the potential impact of AI in the Middle East could be worth $320 bn in 2030. Saudi Arabia and the UAE stand to benefit the most. The latter will have 14 percent of its GDP coming from advancements in AI and related technologies.

In Saudi Arabia, for example, blockchain technology is being used to create a new and simple way to finance small and medium enterprises. In Dubai, digitalization has been in place in many government entities, a sign of its serious ambitions to be the digital innovation capital of the world.

Read: Riyadh inaugurates global AI research center

Increased investments

Meanwhile, the International Data Corporation (IDC) estimates that the Middle East will be spending $3 bn on AI in 2023. That amount will more than double to $6.4 bn by 2026.

“The region is expected to see annual growth in spending of almost 30% on this technology over the next three years, which is the fastest growth rate worldwide over the coming years,” Singh added.

Furthermore, the IDC report says over 80 percent of CEOs in the Middle East affirm the importance of AI in future-proofing their businesses.

Financial markets

According to Singh, AI and blockchain technologies are especially crucial to ensuring optimum performance and transparency in the region’s financial markets.

On the one hand, the integration of AI helps to improve data analysis. In addition, it enables the swift processing of vast financial data, leading to better decision-making and risk assessment.

Moreover, automated trading algorithms can execute trades more rapidly based on market trends and patterns. AI also supports risk management by identifying and mitigating potential risks through data analysis.

On the other hand, blockchain technology enhances security in financial markets, guaranteeing safe and transparent transactions. Singh explained: “This helps reduce fraud and enhances trust in regional financial markets. It also streamlines financial processes, such as settlements and record-keeping, driving efficiency and lowering costs.”

Performance analytics

For, part of StoneX Group, investing in AI technologies has already started. It offers an AI-based Performance Analytics tool, in addition to giving customers, access to advanced risk management performance analytics.

“We firmly believe that AI will revolutionize every aspect of trading, spanning from markets to trading technology,” said Singh. “And we are at the forefront of this transformation by offering our customers AI-based tools, such as Performance Analytics. We’ve also introduced an AI index for trading, The BITA Artificial Intelligence Giants UST Index, and other exciting offerings are currently under development.”

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