TL;DR:
- AI and Blockchain technologies are expected to profoundly impact financial markets in the Middle East.
- The Middle East is projected to gain 2% of the global benefits of AI by 2030, with the UAE experiencing the largest impact.
- The potential impact of AI in the region could reach $320 billion, with Saudi Arabia benefiting the most.
- AI spending in the Middle East is estimated to reach $3 billion in 2023 and is expected to double by 2026.
- CEOs in the Middle East believe AI is critical to the future of their businesses, with over 70% investing in AI technologies.
- AI integration improves data analysis and decision-making, while Blockchain enhances security and efficiency in financial markets.
- Dubai aims to become the Blockchain capital of the world by digitizing the government.
- FOREX.com, part of Stone X Group, offers AI-based Performance Analytics tools and plans to introduce the BITA Artificial Intelligence Giants UST Index.
Main AI News:
The dynamic convergence of Artificial Intelligence (AI) and Blockchain technologies is set to make a profound impact on the financial landscape of the Middle East. According to Ritu Singh, the Regional Director of Stone X Group, the region’s increasing interest and investment in these transformative technologies are key indicators of their potential influence.
A recent report by PwC highlights the disruptive potential of AI in the Middle East, fostering innovation and creating new business models. By 2030, the region is projected to gain 2% of the global benefits of AI, with the UAE experiencing the most significant impact, equivalent to approximately 14% of its 2030 GDP.
The potential impact of AI in the Middle East is staggering, with estimations reaching up to $320 billion. Notably, Saudi Arabia is expected to be one of the economies that will reap substantial benefits from AI advancements. As per The International Data Corporation, AI spending in the Middle East is estimated to reach $3 billion in 2023 and is expected to double to $6.4 billion by 2026, exhibiting a remarkable annual growth rate of nearly 30%, the fastest worldwide.
CEOs in the Middle East recognize the critical importance of AI for the future of their businesses, with over 80% of them acknowledging its significance and more than 70% actively investing in AI technologies.
The rise of AI and Blockchain technologies has already begun shaping new business models, optimizing performance, and boosting efficiency across the entire economic spectrum. AI integration enables improved data analysis, leading to better decision-making and risk assessment. Automated trading algorithms execute trades swiftly based on market trends, while AI assists in risk management through data analysis.
On the other hand, Blockchain technology enhances security in financial markets, ensuring secure and transparent transactions, reducing fraud, and fostering trust. Additionally, it streamlines financial processes like settlements and record-keeping, driving efficiency and cost reduction.
In Saudi Arabia, Blockchain is revolutionizing financing for small and medium enterprises. Dubai, on the other hand, is at the forefront of Blockchain adoption, with ambitious plans to become the Blockchain capital of the world by fully digitizing the government and utilizing Blockchain for all government documents.
The Stone X Group’s trading company, FOREX.com, has already taken steps toward investing in AI technologies. They offer customers AI-based Performance Analytics tools and advanced Risk Management Performance Analytics solutions. Singh emphasizes their commitment to staying ahead in the transformation by providing customers with cutting-edge AI-based tools, such as the BITA Artificial Intelligence Giants UST Index.
The BITA Artificial Intelligence Giants UST Index aims to provide exposure to the AI sector through a selection of publicly listed US companies with revenue in the AI ecosystem. This includes areas such as microprocessors, data center platforms, machine learning, and autonomous AI development. The index values are disseminated on an intraday and end-of-day basis, with USD being the base currency, though other currencies may be applicable when published.
Conclusion:
The growing adoption of AI and Blockchain technologies in the Middle East signifies a significant transformation in the region’s financial markets. With substantial investments and advancements in these technologies, the Middle East is poised to gain a significant share of the global AI benefits. Saudi Arabia’s potential benefits highlight its position as an emerging player in the AI landscape. As the UAE experiences a significant impact, other countries are expected to follow suit, reshaping the financial landscape and opening up new opportunities for growth and innovation. The integration of AI and Blockchain will lead to improved data analysis, secure and transparent transactions, reduced fraud, and enhanced efficiency, which will drive growth and boost investor confidence in the region’s financial markets. Dubai’s efforts to become the Blockchain capital further underline the region’s commitment to embracing transformative technologies. Overall, the future of the Middle East’s financial markets looks promising as it embraces the potential of AI and Blockchain.
