UAE president approves personal credit ratings office

UAE president approves personal credit ratings office

President approves law giving legal framework to federal agency’s creation.

By Babu Das Augustine, Deputy Business Editor

Published: 19:17 December 6, 2010

Dubai: President His Highness Shaikh Khalifa Bin Zayed Al Nahyan on Monday approved the law creating a federal credit bureau to assess the credit worthiness of bank clients.

“The credit bureau provides complete transparency on the status of clients and the bank would have a clear vision,” Federal National Council (FNC) Speaker Abdul Aziz Al Ghurair told reporters on the sidelines of the Gulf rulers summit in Abu Dhabi.

“This helps banks as well as clients avoid uncertainty,” he said.

Al Ghurair, who is also the CEO of Dubai-based Mashreq Bank, said the plan will make the banking system in the UAE more conservative.

Emcredit, the UAE’s first credit bureau, welcomed the development.

“We believe it as a major development for the country’s financial system as it brings a data backbone to the financial transactions. We were very much part of drafting the federal law on credit bureau and we see it as a major reform,” Zaid Kamhawi, Chief Business Officer of Emcredit, told Gulf News.

via gulfnews : UAE president approves personal credit ratings office.