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Tuesday, July 22, 2025

Why more UAE investors are using AI trading bots in the stock market

By Vijay Valecha in 'Century in News'

Why more UAE investors are using AI trading...

Vijay Valecha, July 22, 2025, Khaleej Times

Trading in the stock market can be a tedious and time-consuming activity, which is my many investors are turning to artificial intelligence (AI) trading bots to keep up.

These bots, built to execute trades in milliseconds, are growing in popularity for their ability to analyse massive volumes of market data in real time. According to a stockbroker, they can scan a wide range of financial markets — including stocks, commodities, bonds, indices, forex, and cryptocurrencies — with remarkable speed and precision.

owever, while AI may offer speed and efficiency, not everyone is convinced. Critics argue that the outcomes are still largely speculative. The Commodity Futures Trading Commission, a United States agency which regulates its derivatives markets, issued a warning last year. “Don’t believe the scammers. AI technology can’t predict the future or sudden market changes,” it said in a statement in January 2024.

Despite the scepticism, the AI trading bot industry is booming. According to Precedence Research, the global AI trading platform market is expected to increase from $13.52 billion (Dh49 billion) by 2025 to around $69.95 billion (Dh256 billion) by 2034.

Unfair advantage?

Concerns have also been raised about whether AI tools give certain traders an unfair edge. Altabesh disagreed. “It’s not fair to say that AI gives an unfair advantage. These tools are available to everyone; they’re just new options that traders can choose to use.”

Just as the Internet was once deemed “revolutionary” in the context of the stock market, AI is no different. “Whether or not AI gives users an unfair edge or is simply another tool in the modern toolbox is ultimately up to usage and access,” said Vijay Valecha, chief investment officer of Century Financial.
“AI trading bots are potent tools that deliver performance, efficiency, and scalability,” he said. “But their value hinges on clean data, strong governance, and intelligent design. Used properly, they enhance decision-making, not replace it.”

Source:

Khaleej Times