The United Arab Emirates (UAE) is raising awareness of the potential of quantum computing in financial services to make sure they dont miss out on a huge opportunity.The financial sector is known for using huge amounts of data to improve services and, at the same time, make a profit. Naturally, finance companies in the UAE are looking very closely at how they might take advantage of quantum computing, especially in Dubai and Abu Dhabi. Dubai is a big financial centre, and like Abu Dhabi, invests heavily in technological innovation.According to Oswaldo Zapata, theoretical physicist and consultant for quantum computing in finance 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 known today as one of the main research centres in the world, he says.While the research at the Quantum Research Center is not specifically 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 investing in a workforce that understands the transformative power of quantum computing, says Zapata.In January 2024, a technical conference dedicated to discussing current research in quantum computing for finance took place in Abu Dhabi. The conference was organised by Abu Dhabi Global Market (ADGM). This is at least the second conference of this type they have organised in recent years, says Zapata. This is an example of the degree of commitment that the UAE has to the subject.Zapata adds: Quantum computers are expected to speed up many of the most expensive computations by that, I mean computationally demanding tasks, slow and resource intensive in other words. In many sectors, experts are already trying to figure out how quantum algorithms, particularly those that can be implemented on near-term quantum computers, can help accelerate many processes. 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 could be included in a portfolio grows, the job of optimising the mix becomes exponentially more complicated, to the point where it becomes impossible for classical computers to accomplish within a human lifetime.The second application area is in speeding up Monte Carlo simulations, which are used, for example, to predict prices. By analysing historical price movements, data analysts try to make predictions about future changes, which could give them a huge advantage in the market. Like portfolio optimisation, Monte Carlo simulations grow exponentially 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 huge 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 approximation must faster. Speed is very often 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 less costly quantum computer might do the job. And third is that a quantum computer may consume less energy.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 already 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 optimistic.Moreover, most of these pessimistic arguments come from people who are still thinking in terms of algorithms that require fault-tolerant quantum computers. The fact is that today, quantum computing experts especially those in the financial sector are more focused on developing the so-called 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 the theoretical and practical fronts, theres 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 Summit, which will be held in late February 2025 in Dubai, may go a long way towards 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 already have, along with the large sums of money at stake, Zapata believes the financial sector may be the first industry to truly benefit from quantum computing. At the very least, the UAE should invest in educating people in the industry on the technology and potential applications.Im sure that when the time comes, the UAE will be at the forefront of quantum computing research for finance, says Zapata.Read more about quantum computingDoes quantum matter: Ilyas Khan, CEO of Quantinuum, discusses the quantum computing revolution. IBM plots route beyond Condor: New quantum system and classical computing hybrid forms the basis of next-gen supercomputing at IBM. Current quantum computers are prone to error. IBMs latest Heron machine uses software and hardware to get better results.