As data and AI revolutionize governance, the financial and regulatory landscapes are experiencing a profound transformation. At the World Government Summit 2025, Sallianne Taylor, EMEA head of Government Relations at Bloomberg LP, speaks to Economy Middle East on the strategies policymakers must adopt to enhance transparency, streamline decision-making, and ensure the efficiency of financial ecosystems.
She discusses the critical policy measures needed to strengthen capital market supervision in the Gulf region and highlights how evolving regulations, spurred by technological advancements, are paving the way for a more integrated, resilient, and innovative market environment.
With data and AI reshaping governance, what strategies can policymakers adopt to enhance transparency, efficiency, and decision-making in financial and regulatory ecosystems?
The integration of data and AI into financial governance presents a significant opportunity for policymakers to enhance transparency, streamline decision-making, and improve regulatory efficiency. A key strategy is the promotion of open data initiatives, which ensure that stakeholders—including regulators, financial institutions, and investors—have access to accurate, real-time information. This consistency helps build market confidence, enhances risk assessment, and fosters a more dynamic financial ecosystem.
At the regulatory level, AI-powered analytics can improve oversight and compliance by automating data collection, detecting anomalies, and identifying systemic risks before they escalate. This reduces administrative burdens on financial institutions while allowing regulators to respond proactively to emerging risks. However, the adoption of AI in governance requires clear regulatory guardrails to prevent unintended consequences such as algorithmic bias or excessive reliance on opaque decision-making systems. Striking the right balance between fostering innovation and maintaining regulatory safeguards is crucial. Collaboration between policymakers, industry leaders, and technology providers will play a key role in shaping AI regulations that are transparent, ethical, and adaptable to the evolving financial landscape.
What policy and regulatory measures are needed to strengthen capital market supervision and drive sustainable financial growth in the Gulf/Arab region?
Strengthening capital markets in the region requires a multi-pronged regulatory approach that promotes investor protection, regional integration, and sustainable finance. A critical step is the continued enhancement of market supervision frameworks to ensure integrity and transparency. This includes strengthening disclosure requirements, reinforcing corporate governance standards, and deploying advanced regulatory technologies to monitor market activity. These measures can boost investor confidence and attract greater international capital inflows.
Cross-border regulatory cooperation among GCC countries is another key area. The upcoming fund passporting framework, set for implementation this year, is a major milestone in regional financial integration. By allowing investment funds licensed in one GCC country to be marketed and sold across member states, the initiative enhances capital mobility and makes the region’s investment landscape more competitive. Expanding such frameworks beyond mutual funds to other financial instruments, including bonds and structured products, could further deepen market liquidity.
Equally important is the development of a robust debt capital market (DCM) framework as an alternative funding source. While bank lending remains dominant in the region, a well-functioning bond market can diversify financing options for governments and corporates, supporting infrastructure development and economic diversification efforts. Policymakers should focus on streamlining issuance processes, increasing transparency, and attracting a wider pool of global investors to strengthen DCM resilience.
Sustainability is also shaping regulatory priorities. Encouraging green finance and ESG-compliant investments will be crucial in positioning the region as a hub for sustainable finance. Incentivizing the issuance of green bonds and sustainability-linked financing instruments can drive long-term capital inflows while aligning with global climate finance goals. Regulatory measures that integrate ESG criteria into financial reporting and investment frameworks will help accelerate this transition.
Ultimately, a well-regulated, integrated, and diversified capital market ecosystem will be key to unlocking the region’s full financial potential.
How is the role of regulation evolving in the changing financial markets landscape?
Financial regulation is undergoing a fundamental shift, driven by technological advancements, geopolitical uncertainty, and changing market structures. Historically, post-global financial crisis reforms focused on capital adequacy and risk containment, ensuring that financial institutions held sufficient buffers to prevent systemic failures. Today, however, the focus is evolving. One of the biggest shifts is the need for adaptive regulation that fosters innovation without compromising stability. The rise of fintech, digital assets, and AI-driven financial models requires a recalibration of existing regulatory frameworks to accommodate new market structures while maintaining transparency and investor protection.
At the same time, geopolitical and macroeconomic factors are reshaping regulatory priorities. With major elections on the horizon and shifting economic policies in key markets, regulators must be prepared for potential currency volatility, shifts in capital flows, and broader market disruptions. Ensuring financial resilience through stress testing, macroprudential policies, and cross-border regulatory coordination will be essential in navigating these uncertainties.
Moreover, sustainability and ESG considerations are becoming embedded in financial regulation. Many jurisdictions are now requiring financial institutions to disclose climate-related risks, and regulators are increasingly integrating ESG factors into stress testing frameworks. This shift reflects a broader recognition that sustainability risks are financial risks, and future regulatory strategies will need to account for climate-related financial vulnerabilities.
The key challenge for regulators will be striking the right balance: maintaining strong oversight while allowing markets to evolve dynamically. This requires a regulatory approach that is principles-based rather than overly prescriptive, ensuring that financial institutions can innovate responsibly within clear guardrails.
As financial markets become more complex, regulation must be proactive, agile, and globally coordinated—ensuring market stability while enabling the industry to adapt to rapid technological and economic changes.
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