16.25% of UAE-registered companies are active in the lending market
Commercial reports contain full company information including value of credit outstanding and repayment frequencies
Commercial Bureau launched just six months after personal credit reports were launched in the UAE
Al Etihad Credit Bureau, the UAE’s credit reporting company, has launched the commercial bureau reporting service, which will provide full and up to date credit information on commercial organisations in the country.
Information contained in the commercial reports includes the company’s full address, details of its ownership, the credit facilities that are being used, the total amount of credit taken, and the company’s track-record of payments over the past two years. The reports will allow the UAE’s companies to check the information held by banks is accurate – an important factor as a strong credit history will give access to better terms and conditions with banks, lenders and utility providers and will make it easier to gain access to capital.
Marwan Ahmad Lutfi, CEO of Al Etihad Credit Bureau, said: “As the UAE’s financial sector matures and increasingly positions itself as a competitor on the global financial stage, it is essential for the country’s banks, lenders and utility providers to have as much information at their fingertips as possible when making important commercial credit decisions – especially as the amount of credit in question can be substantial. Currently we can say that 65,000 of UAE-registered companies are using credit facilities, such as loans or overdrafts. This means that 16.25% UAE registered companies in the UAE are active in the lending market*. Between them, they are using 308 thousand different types of credit contracts, including various loans, overdrafts and credit cards.”
With the launch of the commercial bureau, lenders will now have a clear picture on the financial obligations of individual companies and how well they are dealing with them – such as pinpointing if there have been any defaults or delinquent payments.
Mr. Lutfi added “Companies will now be able to get their reports to check their accuracy and make sure institutions such as banks and utility providers are looking at accurate and up-to-date data – an essential part of getting access to the credit that may be required. Just as the UAE’s commercial sector continues to evolve and grow, Al Etihad Credit Bureau is itself evolving alongside it to ensure the country remains competitive, strong and a magnet for business interests.”
Businesses will be able to request their credit reports through the Bureau’s customer service centres in Abu Dhabi and Dubai – Visit aecb.gov.ae or call 600566662 for more information.