Insights: Why AI trader agents could be a valuable financial asset
Image: Supplied
In today's digital trading landscape, automation has shifted from convenience to necessity. This is especially true in regions like the UAE and the Middle East, where rapid fintech adoption is transforming financial markets. As traders seek smarter execution, a critical distinction emerges between traditional trading bots and next-generation AI-powered trader agents. While both offer automation, they operate on fundamentally different principles — and knowing the difference is key to staying competitive.
Traditional trading bots run on fixed, rule-based algorithms designed to execute predefined strategies such as arbitrage or trend-following. Their strength lies in speed and consistency when markets behave predictably. However, this rigidity quickly becomes a liability in volatile environments. Bots lack adaptability; they cannot adjust to shifting market conditions without manual intervention.
Operating solely on structured data like price charts and technical indicators, they remain blind to external forces such as geopolitical developments, regulatory shifts, or social media sentiment — all of which heavily influence markets, particularly in the Middle East.
Beyond their technical limitations, security risks further complicate bot usage. These systems require API access to user accounts, making them prime targets for cyberattacks. Technical glitches, erroneous trades, and system crashes are not uncommon. Despite their promise of efficiency, bots offer no guarantee of success — especially in dynamic markets shaped by both global and regional events.
AI trader agents thrive where bots fall behind
In contrast, AI trader agents represent a transformative leap in trading automation. These systems leverage machine learning and adaptive algorithms to continuously refine strategies based on both real-time and historical data. Crucially, they process not only structured but also unstructured data — analyzing news, blockchain activity, and market sentiment — giving them a contextual awareness that static bots simply cannot achieve.
This adaptability is particularly relevant in the UAE, where the financial landscape is evolving rapidly. The country's
Unlike deterministic bots that follow rigid 'if-this-then-that' logic, AI agents employ probabilistic decision-making. They weigh liquidity conditions, sentiment shifts, and risk-reward scenarios to dynamically adjust portfolios, manage risk in real-time, and even handle complex tasks like predictive analytics or DeFi strategies. These are critical capabilities in markets prone to sudden shifts.
Balancing innovation with infrastructure
Still, these advanced systems are not without challenges. AI trader agents require access to high-quality data, robust infrastructure, and significant computational power. Their complexity makes them costlier to develop and operate. The experimental nature of AI can lead to decision-making errors, and transparency remains a concern, as many models function as opaque 'black boxes.'
Yet, the Middle East — and the UAE in particular — is uniquely positioned to overcome these barriers. The country's burgeoning fintech ecosystem, projected to reach $6.4bn
From automation to intelligent wealth creation
Traditional bots still hold value for executing repetitive strategies in stable conditions. But in today's fast-moving, data-rich markets — especially within the Middle East's unique economic and geopolitical context — adaptability is no longer optional. This is where AI trader agents shine, offering intelligent, responsive systems that evolve with market conditions.
This is more than just automation. It's the dawn of intelligent wealth creation.
As the UAE cements its status as a global fintech and AI leader, AI trader agents are poised to redefine financial participation. By offering scalable, adaptive tools that cater to all levels of traders, they bridge the gap between access and expertise — empowering users to trade smarter, not harder.
Ultimately, they represent a paradigm shift in portfolio management, enabling 24/7 execution perfectly aligned with the region's economic diversification goals.
The writer is the head of Blockchain Technologies at Exinity.
Read:
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
UAE Property: ‘I'm worried the seller is unduly delaying my house purchase'
Question: I signed a memorandum of understanding on March 4 for the purchase of a property at Gate Tower, Abu Dhabi. The original agreement was valid for 60 days. However, due to delays in the bank loan process, the seller decided to withdraw from the sale. About a week later, the seller reconsidered and agreed to proceed with the sale. We did not sign a new memorandum of understanding, as advised by the agent handling the transaction. Now, as we are already into the third week of June, certain pending actions remain from the seller and the agent holding the power of attorney. Could you advise what steps I can take to help move the process forward, as the delay is becoming longer than anticipated? My blank cheque as security deposit of 10 per cent of the property price is with the agent. AA, Abu Dhabi Answer: The first thing to point out is that not signing a new written agreement was a bad move because now you are reliant on a verbal agreement, where the parties don't have any legal redress should they fail to fulfil the wishes of all. These delays would worry me because the tide has turned from your side being the one that had issues leading to delays, but now the delay is with the seller. If all parties are in agreement and even at this late stage, I would still urge you to firstly sign an addendum to the expired memorandum of understanding clearly stating the obligations of all parties in order to finalise this sale, after which all parties can work to finish this transaction, assuming all still wish to do so. This is where my concerns are. It's possible that the seller may use this delay to look for another buyer or indeed has one already but just has not informed you yet. I know this is pure speculation, but my experience has shown me that when the seller delays, especially in a rising market, it's because he wants a better deal. I suggest you bring all parties together to agree once and for all if this deal is going ahead because with an expired memorandum of understanding in hand, nobody has any rights. Q: I have a question regarding an office rental situation. If I provide a tenant with a 12-month eviction notice due to the sale of the property, and after the tenant vacates, I later invite them to return but they decline, would I be legally allowed to rent the office to someone else? I recently purchased an office property and understand that the previous owner issued a 12-month eviction notice to the tenant due to the sale of the property. I assume that this eviction notice remains valid under my ownership, just as the lease contract would. Could you confirm if this is correct? Additionally, as the new owner, once the tenant vacates the property, am I permitted to lease it to a new tenant immediately? JL, Dubai A: The outgoing tenant always has the first right of refusal after a forced eviction, so if you re-offer the unit to the outgoing tenant and they are not interested to return, you would need to have this in writing, preferably notarised, after which you can re-let the property again. The reason of the notarised notice is because a landlord technically cannot evict one tenant to then just re-let it out to another. That's why the outgoing tenant has the right of refusal and if they do not exercise that right, you can move forward and re-let the property immediately. Your second point is correct, as long as the eviction notice was sent by notary public and/or registered mail and was for the statutory 12 months' notice, you can use this for your own gain, even if it was sent by the previous owner. This has now been made possible by judges at the Rental Dispute Settlement Committee agreeing that the notice served is transferable when previously it wasn't. Before this law change, you would have had to serve another 12 months' eviction notice to the tenant yourself.
Khaleej Times
4 hours ago
- Khaleej Times
UAE: Top 6 property hotspots to invest in this summer
With the UAE temperature rising, so is the appetite for investors looking for real estate hotspots. The country's real estate market remains active all year‑round — with transactions reaching more than Dh239 billion in the first three months of 2024 alone, and investors looking for projects that combine lifestyle, location, and financial upside. Whitewill, a luxury real estate agency, shared with Khaleej Times a list of strategic locations that have long-term value, vision, and seasonal appeal — from branded beachfront escapes to smart city zones. Al Marjan Island, Ras Al Khaimah With more investors prioritising coastal living, Al Marjan Island is experiencing a surge in demand, especially with the upcoming Wynn Resort transforming the area into a hospitality hub. It has direct beachfront access and the rare opportunity to own a branded residence beside a future integrated gaming and entertainment destination. Apartments begin at Dh585,000, with ultra-luxury homes priced up to more than Dh30 million. Investors can expect between 8 and 9+ per cent rental yields and more than 20 per cent YoY (year-on-year) appreciation in some enclaves. It is good to note that Ras Al Khaimah International Airport recently announced significant expansion with a new 30,000 sqm terminal to boost tourism as the emirate eyes three million travellers. The expansion of the RAK Airport is seen by industry leaders as big boost to the emirates' tourism, especially those coming from India, China and Western Europe. Business Bay In a market where short-term rental returns drive demand, Business Bay continues to attract buyers looking for income-generating assets in the city centre. Its strongest draw is the fusion of location and luxury, with proximity to DIFC (Dubai International Financial Centre) and Downtown Dubai, with Dubai Canal weaving its way through. Studios and 1–2BR apartments average Dh1.4M, delivering 6–7 per cent yields and strong resale demand. Among standout offerings is the Waldorf Astoria Residences — a branded address that blends high-end services with everyday practicality. The project 'Gateway to Business Bay' was also recently announced, adding another striking new landmark to Dubai when the project is completed in 2029. The 48-storey Lumena Tower by Omniyat is a flagship commercial development strategically positioned on Sheikh Zayed Road, at the intersection of Business Bay and Downtown Dubai. It will have an open-air Sky Theatre, a first-of-its-kind entertainment and event space located at the top of a commercial tower. Dubai Creek Harbour Demand is consistently rising for communities that combine prestige, proximity, and waterfront serenity, and Dubai Creek Harbour checks all those boxes. The star feature here is its master-planned waterfront living, enhanced by green spaces and direct views of the Dubai Creek Tower. Waterfront apartments start at Dh1.45 million, while luxury villas exceed Dh5 million. With rental yields of 6–6.8 per cent and consistent appreciation, the area balances luxury with long-term potential. Dubai Creek Harbour is a favourite among buyers seeking a premium lifestyle with investment upside, noted Whitewill. Yas Island, Abu Dhabi In the Capital, investors are eyeing Yas Island for its unique blend of leisure, family appeal, and short-stay rental potential. The island's standout quality lies in its lifestyle proposition, from theme parks and golf to marinas and cultural hotspots, all within a well-planned residential setting. Villas average Dh4.5 million, with apartments priced between Dh1.2 million and Dh3.8 million. There is also Waldorf Astoria Yas Island that offers waterfront premium hospitality brand, making it an attractive asset for both use and investment. A big announcement early this year was made by Yas Waterworld Abu Dhabi with the introduction of new attractions this summer, including 12 new rides and slides, in addition to new dining offerings. Dubai South Investors are increasingly drawn to Dubai South for its affordability and alignment with the UAE's infrastructure vision. As a future-ready hub near the upcoming Al Maktoum International Airport expansion, logistics hubs, and the Expo 2020 legacy infrastructure, its core appeal lies in early-mover advantage and the opportunity to ride the wave of long-term growth. Whitewill noted there is a strong uptake in off-plan units starting at Dh800,000, with a projected 15–25 per cent value growth by 2030 and rental returns of 6–8 per cent. Industry experts earlier said, property prices in Dubai South are forecast to increase by a further 15-20 per cent in the near term, as the Dh128 billion ($35 billion) expansion of Al Maktoum International Airport in Dubai South is fuelling a major real estate boom in the area, data shows. According to data from Betterhomes, property transactions in the area have already exceeded Dh15 billion in the first five months of 2025. The neighbouring Expo City, meanwhile, exemplifies the area's appeal with a wellness-first, car-free community design in the city's innovation hub, tailored for a new generation of buyers. Jumeirah Village Circle (JVC) Known among residents as affordable, accessible, and increasingly design-driven, JVC remains a go-to for buyers seeking strong yields without compromising on lifestyle. The area's main pull is its ability to deliver rental income and resident satisfaction. Road access has also recently significantly improved. Apartments start at Dh650,000 and entry-level villas at Dh1.6 million, offering 7–8.6 per cent yields. The district's consistent rental demand makes it ideal for first-time investors.
Khaleej Times
4 hours ago
- Khaleej Times
Watch: Dubai expat to build mini Burj Khalifa using 2 million chopsticks
Dubai-based businessman Charles Jabbour is on a mission to boost recycling and up-cycling one chopstick at a time. He plans to spare millions of disposable wooden utensils from going to landfills with projects that give them a second life as new, practical products. And to demonstrate just how many disposable chopsticks a big city like Dubai gets through, a replica of the Burj Khalifa is being constructed at The Arbor School, Al Furjan, led by students, with help from teachers, parents, and Jabbour's team. The Burj Bambusa Project, as it has been named by the school, will result in what is being touted as a potential record-breaker: the world's tallest structure made entirely from recycled bamboo chopsticks. 'We are using close to two million chopsticks, which I believe is about the equivalent number used at restaurants in a week in Dubai,' the 57-year-old Lebanese entrepreneur told Khaleej Times over the weekend. He views the project as a powerful symbol of circular economy principles, environmental innovation, and community engagement, and says the six-metre tower will raise awareness of the vast amount of reusable materials thrown away daily by hundreds of UAE restaurants. Jabbour and his team started collecting chopsticks from restaurants around Dubai 18 months ago and have since harvested at least two million to be repurposed to make attractive items such as 'climate-positive' furniture. He started a franchise, ChopValue, a global circular economy brand headquartered in Vancouver, Canada, and set up a micro-factory in Dubai under his company Art & Culture LLC. The Arbor School, meanwhile, prides itself on its focus on ecological literacy and sustainability, and on embedding compassion and curiosity into the fabric of the curriculum. So students have been directly involved in various stages of the project, including constructing chopstick bundles and conducting waste audits, evaluating the design of the structure, calculating environmental impact, and documenting the process. Since embarking on his campaign, Jabbour has partnered with popular restaurant chains The Noodle House and Wagamama, plus Radisson Blu Hotel, Dubai Deira Creek, whose staff gather chopsticks used by customers for collection by Jabbour's team. 'As it currently stands, the majority of chopsticks in restaurants are used once and then thrown out,' Jabbour noted. 'This represents a tragic waste of resources, including wood, energy, and water, but also represents a great opportunity.' Jabbour and ChopValue intend to prevent about 250 tonnes of chopsticks per year locally from going to landfill. They will turn them into attractive items through a carbon-neutral, community-based production model, and give these humble wooden implements a new lease of life. Once clean of food and liquids, the chopsticks and wooden utensils can be engineered to form fresh items such as tables, chopping boards and coasters, thereby saving on carbon emissions and resources used in creating products from raw materials. 'This way, the chopsticks get more than one use and are repurposed creatively for products that look stylish and also come with a story,' Jabbour explained. Three weeks to go Jabbour wants The Arbor School's Burj project to draw attention to the 'breathtaking volume' of chopsticks used by the F&B industry, not only in the UAE but worldwide. The Burj replica construction began in early May and should be completed within three weeks, when Jabbour will seek a new temporary home for the structure. These chopsticks will also later be repurposed as new products.'By getting the school involved, we can demonstrate to the next generation how an item with a very short lifespan is treated as waste by many, but can still have an enduring new purpose,' Jabbour says. 'The project also shows the power of up-cycling and how this imaginative and growing sector can develop not only attractive new products using items destined for landfill but also create jobs for those who wish to pursue a sustainable career direction.' Jabbour said: 'There is a little bit of irony that these chopsticks will actually be around for longer now than they would have been for the purpose for which they were first designed. That is reassuring to know - and even better for the forests, our ecosystem, and the planet.'
