Al Etihad Credit Bureau launched in the UAE
Federal Government mandated bureau begins operations with two customer service centres opened in Abu Dhabi and Dubai
The long awaited Al Etihad Credit Bureau (AECB), the Federal Government company mandated to implement and operate a credit reporting system across the UAE, has begun issuing credit reports to UAE citizens and residents.
The UAE's new assessor of individual and corporate credit-worthiness is headquartered in the country's capital with customer service centres in Abu Dhabi and Dubai.
Individuals can now obtain their own credit reports by visiting the Bureau's customer service centres and providing their Emirates ID details.
Marwan Ahmad Lutfi, CEO, at AECB, said at the official launch that the company has now completed the first phase of its operational roll-out, which included uploading 24 months of credit data from banks and financial institutions operating in the UAE to the Bureau's database, for all individuals with bank accounts.
Lutfi added that: "The bureau will implement its second phase during the next few months and this will include issuing credit reports on all companies operating in the UAE, bounced cheque details and telecommunications companies' payment information for the past 24 months. We will announce the launch of other services in the future, which will be implemented throughout various phases. Specific dates will be announced early next year."
Lutfi stated that since the establishment of the bureau, AECB has achieved significant milestones. This includes uploading 90% of the consumer credit data provided by banks and financial institutions for the past 24 months. He stressed that the company database includes information for 2.8m individuals, which represents 97% of the total credit active population of the UAE. This data features six million credit facilities of individuals living in the UAE.
According to AECB, 43 banks and financial institutions have submitted their customers' credit data, 29 of which have subscribed to its credit reporting services.
Lutfi added: "As of today, both financial institutions and UAE residents are able to obtain credit reports with a data accuracy rating of 99.5%, which surpasses international standards of credit data quality and accuracy. These credit reports will help individuals to understand their debt levels and have a clearer picture of their financial obligations. This will in turn enhance their ability to plan for future borrowing, and manage their finances responsibly."
He added that credit reports will play a key role in helping banks and financial institutions to assess risk accurately, enabling them to make informed lending decisions and lower lending risks.
Lutfi also reaffirmed that AECB is committed to strengthening the UAE's financial infrastructure and enhancing transparency in lending. He stressed that the company is continuing to support the financial sector with tools that will improve their lending procedures, in line with international risk management standards.
Lutfi added: "We are working closely with our partners to ensure that Emirates ID details for all customers are provided to the Bureau by banks and financial institutions. We've also recently launched an awareness campaign to introduce the local community to the Bureau's services."
Earlier this year, the Dubai IT channel welcomed the formation of AECB with many IT industry pundits expressing optimism that it will go a long way in helping the UAE channel to reduce reseller runaways.