First phase of UAE credit reporting system to be launched in 2013
Executive taskforce now appointed
Core credit bureau platform has been selected
IT infrastructure in final stages
Abu Dhabi, 28 April 2013: Al Etihad Credit Bureau, the Federal Credit Bureau, has released a statement to update on progress in the 14 months since its creation in February 2012, as it prepares to apply a comprehensive credit reporting system in the UAE. Under the new system, Al Etihad Credit bureau will be responsible for collecting data from different credit data providers like financial institutions, telecommunication companies and various government bodies in the UAE and delivering credit reports to the credit data providers and individuals. The comprehensive credit reports will be specifying debt levels and financial commitments.
The credit bureau is part of the Federal Government's strategic initiative to improve the transparency of borrowing and to develop the credit reporting system in the UAE. It reflects the UAE's commitment to abide by the highest standards and international best practices to limit credit risks facing banks and financial and service organisations in the country.
Speaking a year on from the creation of the Federal Credit Bureau, H.E. Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of Al Etihad Credit Bureau, said:
"Al Etihad Credit Bureau has been working closely with the Central Bank and various government bodies over the past 14 months to put the necessary legislative framework in place in preparation for the launch of the UAE's credit reporting system. The Board is working hard to ensure that the framework is fully compliant with international best practice in order to bring the UAE in line with global financial standards.
"The Board has now approved Corporate Governance Guidelines and various Committee Charters and Corporate policies, and the first phase of the Credit Bureau solution, which will involve an initial limited launch, is on schedule to come into force in the middle of this year.
"We can also confirm that the core credit bureau platform has been selected and that full implementation is on schedule, with the offices and IT infrastructure in the final stage of set-up.
"The full credit bureau services will be launched in phases to ensure a smooth integration of the new system, with the exact dates of rollout to be determined by the Federal Bureau once all research has been conducted and the relevant laws and infrastructure are in place.
"The introduction of a full credit reporting system in the UAE is a strategic forward step by the Federal Government to provide a more transparent credit system in the UAE, and it is important that all parties, from consumers to financial institutions, are kept informed of progress. To this end, the Credit Bureau is also in the process of conducting sentiment research among consumers through a third party research company to ensure a smooth launch process.
"A taskforce consisting of a Financial Institutions Workgroup and a Telecommunications Companies Workgroup has also been established to ensure full preparation ahead of the launch. The Workgroups meet with Al Etihad Credit Bureau on a regular basis to cooperate on the finalisation of the UAE specific requirements, and discussions have been progressing well.
"We look forward to providing further updates on progress in the coming months as we prepare to apply the new credit reporting system."