Financial markets are changing rapidly, and artificial intelligence (AI) is playing a bigger role in managing investments. In a striking example of technology’s potential, an AI-driven bot —the Galileo FX— reportedly generated a 500% return on a $3,200 investment in just one week. Meanwhile, the launch of Deepseek introduces even more advanced processing capabilities, expanding the possibilities for algorithmic trading solutions. However, while these innovations are reshaping the industry, human judgment remains irreplaceable.
Over the past decade, automation has surged in the financial ecosystem. In the U.S., nearly 70% of stock transactions rely on algorithmic systems. Globally, this shift is expected to continue, and Grand View Research projected a 12.2% compound annual growth rate (CAGR) between 2022 and 2030. As AI-powered strategies become more sophisticated, their influence on investing and market dynamics is becoming impossible to ignore.
The GCC’s emergence as a global fintech hub is accelerating the adoption of AI. Unlike established financial centers in New York or London, GCC countries have focused on developing frameworks in tandem with technological advancement. Regulatory bodies like the Securities & Commodities Authority (SCA) and the Virtual Assets Regulatory Authority (VARA) in the UAE, and the Capital Market Authority in Saudi Arabia and Qatar Financial Markets Authority have implemented forward-thinking policies that encourage innovation and investor confidence. Governments across the region are also expanding automation and increasing access to data-driven decision-making. Initiatives such as the Dubai AI & Web3 Campus, Abu Dhabi’s Hub71, and Saudi Arabia’s Vision 2030 fintech and the National Artificial Intelligence Strategy in Qatar are paving the way for new applications in trading and investment.
Balancing progress with oversight
The International Monetary Fund (IMF) has noted that algorithmic trading improves market efficiency, but it also heightens risks such as volatility and instability during periods of stress. Smart regulation plays a key role in maintaining stability and protecting investors.
MultiBank Group adheres to strict international guidelines, prioritizing responsible and secure practices. To stay ahead in risk management and innovation, the company launched MultiBank-AI, a specialized division integrating AI across investment strategies, client services, and internal operations. Its Smart Order Routing system streamlines execution, optimizing transactions to improve profitability while reducing exposure to high-frequency trading risks.
With a presence across five continents, MultiBank Group is regulated by over 16 financial authorities, ensuring a secure environment for its clients. Its dedication to governance was recently recognized when it was named ‘Best Global Regulated Broker 2024’ by the International Wealth Management and Financial Investment Forum. Further strengthening its regulatory position, the firm obtained a license from VARA in the UAE.
The future of AI and regulation in finance
AI offers new levels of efficiency and insight, but the real challenge lies in making sure that these advancements serve people. Trust is what drives markets, and maintaining it requires balancing human oversight with AI tools. This isn’t just a conversation for policymakers—industry leaders and tech developers must come together to shape a future that benefits everyone.
The Gulf’s approach is a real-world example of where this works because the region has created a space for cutting-edge solutions to thrive without undermining security or transparency, setting a precedent for other financial hubs. AI is here to stay, but now cities and private enterprises have an opportunity to collaborate and build a smarter, more inclusive ecosystem that puts investors first.
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