The united Arab Emirates (UAE) is Raising Awareness of the potential of Quantum Computing in Financial Services to make sure they do not miss out on a huge opoportunity.
The Financial Sector is Known for Using Hug Amounts of Data to improve services and, at the same time, make a profit. Naturally, Finance Companies in the UAE are looking very close at how they might take advantage of quantum computing, especially in Dubai and Abu Dhabi. Dubai is a big financial center, and like abu dhabi, invests heavily in technological innovation.
According to Oswaldo zapataTheoretical Physicist and Consultant for Quantum Computing in the UAE, Abu Dhabi has made significant investments in the development of quantum computing. “The Quantum Research Center [a subsidiary of the Technology Innovation Institute] is knowledge today as one of the main research center in the world, “He says.
While the research at the quantum research center is not specificly applied to finance, the Abu Dhabi Investment Authority (Adia) is aware of the future of quantum computing and has hired a leading team that has carried out research and is committed to promoting Quantum computing for finance.
“One of its directors in particular-a well-known quant named Marcos Lopez De Prado – Is an active participant and strong advocate for investment in a workforce that understands the transformative power of quantum computing, “Says zapata.
In January 2024, A Technical Conference dedicated to discusing current research in quantum computing for Finance Took Place in Abu Dhabi. The conference was organized by Abu Dhabi Global Market (ADGM). “This is at least the second conference of this type they have organized in recent years,” Says zapata. “This is an example of the degree of commitment that the uae has to the subject.”
How Financial Services Companies Could Benefit from Quantum
Zapata Adds: “Quantum computers are expected to speed up many of the most expensive computations – by that, i mean computational demanding tasks, Slow and Resource Intensive Intensive Intensive Intensive Words. In many sectors, experts are alredy trying to figure out how quantum algorithms, particularly that that can be implemented on Near-Term Quantum Computers, Can HeLeP ACCE CECE CECE CECE CECE CECELERERETE MANYATE MANY THE And finance is no exception. ”
According to Zapata, Quantum Computing Could Be Applied to Three Application Areas in Finance. The first is in optimising portfolios. As the number of assets that would be included in a portfolio grows, the job of optimising the mix within Hin a human life.
The second application area is in speeding up monte carlo simulations, which are used, for example, to predict price. By Analysing Historical Price Movements, Data Analysts Try to Make Predictions about Like Portfolio Optimization, Monte Carlo Simulations Grow Exponatily in Complexity as the Number of Data Points Grow. Here Again, Quantum Computing Technology would give a company a big advantage.
The third areas where quantum computing might be applied in financial services is machine learning. Finance companies typically have a hug Amount of Data to Train Artificial Intelligence (AI) Algorithms. Quantum machine learning would help companies in the sector gain an advantage.
There is a lot of talk about how, Once they can solve practical problems, quantum computers will be able tackle many problems that cannot be solved by traditional computers. However, even if both classical computers and their quantum counterparts can solve the same problems, there are still three other scenarios where companies in the finance sector might opt for quantum, according to Zapata.
The first is that even if a classical computer can find a more accurate answer than a quantum computer, the quantum machine might find a close a close approximation must faster. Speed is very of the essence in financial services. The second is that in cases where a classical computer can solve a problem, it may require an exorbitantly expensive one – a lessly quantum computer might do the Job. And third is that a quantum computer may consume less energy.
The transition to quantum
Zapata says that one of the main obstacles to exploring the use of quantum computing in Finance Comes from Experts in other fields who are Sceptical about the potential of the technology. Some people think that quantum computing is too far in the future and will never become a reality.
“The 'Supremacy' of Quantum Computers is Alredy a Reality,” Says Zapata. “Even though, for now, they are exclusively applied to mathematical problems with no practical use, the rapid development of both hardware and software GIVES Us Good REASONS to Be OPTIMITICT.
“Moreover, Most of these pessimistic arguments come from people who are still thinking in terms of algorithms that requires that require fault-teleland quantum computers. The fact is that today, Quantum Computing Experts-Especially there in the financial sector-are more focused on developing the so-valied noisy intermediate-scale Quantum [NISQ] Algorithms, a hybrid approach that combines quantum and classical computing.
“These could become Practical Within The Next Five to 10 years. As long as research continues to show concrete results, both on theoretical and practical fronts, there's every reason to remain optimistic. ”
Despite being the commercial and financial capital of the uae, dubai has seen limited development in quantum computing, let alone its application in the financial industry. Until now, The UAE government has focused its attention on Abu Dhabi.
However, the Quantum Innovation SummitWhich will be help in late February 2025 in Dubai, May Go A long way legs filling the gap. “I believe this is an excellent initiative to take the first steps toward the adoption of quantum computing in Dubai, Particularly in Its Bustling Financial Sector,” Says zapata.
Because of the huge Amounts of Data and the Strong Computational Knowledge That Experts in the Financial Sector Alredy Have, Along with the Large Sums of Money at Stake, Zapata Believes The Firist Ustry to truly benefits from quantum computing. At the very least, the uae should invest in educating people in the industry on the technology and potential applications.
“I'm sure that when the time comes, the uae will be at the forefront of quantum computing research for finance,” Says zapata.