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

He pointed out that one of the main initiatives that the DCG is currently working on is to control and avoid any runaways from happening in the market as such developments have a negative impact on the channel as a whole. "We plan to work closely and align DCG and its entire ecosystem with the Al Etihad Credit Bureau," he said.

That alignment is what regional VAD Aptec is also intending to do once the bureau becomes operational towards the end of 2014.

Baghdadi added: "Our plan is to work closely with the bureau. We also hope the Al Etihad Credit Bureau will be rolled out to other GCC countries to have better benefits for the business community in the UAE and region."

He was optimistic that a healthy business environment can be expected once the bureau is operational leading to enhanced transparency and confidence in the local IT sector. "Once we have studied the Al Etihad Credit Bureau portfolio, a natural process would be to sensitise our channel partners in the region. We already have a due diligence process  in place for on boarding resellers and assigning credit terms," Baghdadi said.

Asbis' Menon concurred and said there is need for more interaction among IT bodies such as the DCG and Al Etihad Credit Bureau, showcasing the importance of such a bureau and how it would help the entire group. "A seminar or a series of workshops would go a long way in that regard," he noted.

However, Menon said as in every country there exists credit defaulters who default knowing they are not going to cope with payments on their borrowings. "There also exist a section who become victims of the system. When people see lenders queuing to lend them it sometimes becomes too difficult to resist. If there is a credible credit bureau which lenders can depend on to get useful reports on individuals or companies about their credit worthiness, it makes things easier for all concerned parties," he said.

1861 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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