DCG applauds Al Etihad Credit Bureau launch
Dubai IT trade body looks forward to working with newly formed credit bureau
The Dubai Computer Group (DCG) has hailed the launch of Al Etihad Credit Bureau (AECB), a Federal Government mandated company that has started assessing individual and corporate credit-worthiness in the UAE.
The company, which started issuing credit reports for individuals earlier this month, revealed that it will implement the second phase next year and this will include issuing credit reports on all companies operating in the UAE.
Shailendra Rughwani, president, DCG, said as an association body in the IT sector, this is good news for members and all businesses operating in the UAE. Rughwani added that this is going to benefit not only the banks but even corporate and other business firms that depend on information and credit worthiness of companies to push the market forward. "We hope that Al Etihad Credit Bureau can connect to all the companies in the UAE including SMEs so that it benefits smaller and larger firms to get information about a particular company or individual. This is a very good step taken by the Federal Government," he said.
Rughwani added that DCG is already working on similar terms aimed at controlling credit extended to member through sharing of information. "Initially the DCG had tied up with Emcredit. DCG will be willing and open to work with Al Etihad Credit Bureau," he said.
He explained that the plan is to get in touch with Al Etihad and invite them to visit DCG so that members can update it about the challenges they face in their day to day business. "We hope we can work closely with Al Etihad, which we believe will have benefits for our members," he said.
Rughwani said the setting up of the bureau will go a long way in curbing runaways in the IT channel. "This can happen with the Credit Bureau becoming stronger when they get full cooperation from all the companies in the UAE. We will spread information amongst our members explaining the benefits of joining hands with the bureau," he said.
Rughwani reiterated that it is very important to have a strong credit bureau, which has support from government. "As the Al Etihad Credit Bureau is working with banks, financial institutions and other organisations, the industry will be able to get invaluable information on which companies and individuals have good credit ratings," he said.