The Impact of Financial Technology on Enhancing Investment Management Efficiency in Capital Markets: A Qualitative Review of Global and Regional Literature (2015–2025)

الملخص

The purpose of this research is to study how financial technology (FinTech) has changed the way capital markets operate and how this has increased the efficiency of investment management around the world and regionally. The methodology for this study consists of conducting a systematic qualitative review of all peer-reviewed articles and institutional reports published between 2015-2025 that are related to FinTech’s ability to support the integration of Artificial Intelligence (AI), Blockchain technology, and Robo-advisors to improve existing investment management systems. From this review, the findings indicate that AI has improved risk-adjusted return on investments (Sharpe ratio) by 2-3% per year for investments assessed under AI solutions as compared to traditional fundamental analysis solutions. Furthermore, the widely used transition to T+1 settlement cycles globally made it possible to use Distributed Ledger Technology (DLT) has not only improved credit risk but has also provided enhanced liquidity for capital market participants.

Regionally, the Gulf Cooperation Council (GCC) has distinguished itself from other global competitors by creating an innovative and dynamic financial services marketplace, with the UAE anticipating that AI will generate a 14% increase in its GDP by 2030. Overall, while FinTech improves access to capital markets and reduces transaction costs for all investors, the establishment of long-term sustainable capital markets will necessitate developing Adaptive Regulations (SupTech) and employing Explainable AI (XAI) to effectively manage systemic risks.