Dubai channel lauds Al Etihad Credit Bureau creation

New credit bureau to assess individual and corporate credit-worthiness

Tags: ASBIS Middle EastAptec DistributionDubai Computer Group (DCG) ( HermesMerlin Digital
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Dubai channel lauds Al Etihad Credit Bureau creation Dr Baghdadi says the new credit bureau is a positive step for the business community in the UAE.
By  Manda Banda Published  July 7, 2014

The Dubai IT channel has welcomed the formation of Al Etihad Credit Bureau, the UAE's new assessor of individual and corporate credit-worthiness.

The new body, which aims to coordinate data on loans, credit cards and other lending by the country's 52 banks and other financial lending firms, in a bid to cut down on excessive borrowing, is to be introduced later this year.

For the Dubai IT channel, the announcement that the credit bureau is nearly ready is good news as the sector has in the recent past experienced an increase in the level of defaults with reseller company owners fleeing the local market after failing to meet their debt obligations.

Industry pundits are upbeat the establishment of Al Etihad Credit Bureau in the UAE will go a long way in helping the Dubai channel to reduce reseller runaways.

Dr Ali Baghdadi, president, Middle East, Turkey and Africa (META) at Ingram Micro's Aptec, said this is a positive step for the business community in the UAE and it will definitely help both creditor and customer to have a fair evaluation process.

Baghdadi said information on working capital, net worth, owner's business interest, years in the business and other vital data would become readily available thereby enhancing transparency. "These are far more accurate measurement numbers instead of relying on the annual financial statements and trade references of a reseller's business. The result is faster decision making for both business partners," Baghdadi said.

1829 days ago

Credit bureau is in no way going to reduce "runaways", as this is not going to be a free service and can be afforded by only companies working at a certain level. It may definitely help those companies to get a Bank loan etc.

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