According to the Future of Finance report released by the Dubai International Financial Center (DIFC) in partnership with Asia House, AI and emerging technologies are expected to significantly influence the finance sector. The report forecasts that AI could contribute $15.7 billion to the global economy by 2030, with the financial services sector poised to reap the most benefits, including new revenue streams, enhanced customer experiences, increased operational efficiency, and lower costs.
Titled “The Global Finance and Investment Perspectives: Mapping Technological Changes and New World Flows,” the report identifies key drivers behind the extensive transformation of the global financial services industry across various sectors and regions. The insights are drawn from comprehensive research and perspectives from global financial leaders involved in the DIFC’s ecosystem. The report discusses global financial trends affecting capital and talent flow, highlights emerging growth areas, addresses geoeconomic uncertainties, and offers a future outlook for the industry.
Salmaan Jaffery, Director of Business Development at DIFC Authority, remarked on the report’s launch, stating that the global financial services sector is entering a new era fueled by significant changes in the capital landscape. He noted the shift of economic power to the East and the emergence of new economic corridors, emphasizing Dubai’s role as a strategic hub connecting emerging economies.
Michael Lawrence Obe, Director General of Asia House, emphasized that the financial services sector is rapidly evolving due to geographic, structural, and technological changes. The Future of Finance series aims to examine these profound shifts and how financial services can adapt.
The report highlights that financial services firms are seeking environments conducive to growth, characterized by innovative regulations, strong legal frameworks, strategic locations, and opportunities driven by skilled talent. It also discusses the impact of changing capital dynamics and rising investor interest in private markets, positioning Dubai as a prime location due to its concentration of wealth.
The report further addresses global monetary policy, emerging market opportunities, and how new growth corridors are reshaping the financial services landscape. Topics include the influence of AI and digitization, Islamic finance, sustainable finance, private credit, and the geoeconomic relationships affecting East-West dynamics.
In navigating uncertainty, the report identifies several risks, including interest rates, inflation, protectionism, and the talent gap within the financial sector, while also exploring the factors driving wealth movement between regions.
One major hurdle in AI implementation is the lack of consistent regulatory standards. The report states that the potential of AI in financial services hinges on clear and effective regulations. DIFC is demonstrated as a leader in this area, with initiatives such as the world’s first digital assets law and a unique AI licensing scheme designed to stimulate innovation and growth.
Over the past two decades, DIFC has developed into a thriving global ecosystem fostering innovation and sustainable development. It has advanced efforts to integrate AI within industries and has positioned itself as a leading hub for AI, fintech, and innovation in the region.