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Emcredit holds 30 per cent 
coverage of banking data

In the coming months, Emcredit is expected to significantly increase its coverage of credit information from the financial services sector, Ali Ibrahim, Managing Director of UAE’s pioneer information services company, said in a statement.

Apart from 30 per cent coverage of banking data, Emcredit currently holds nine million consumer identification records and payment behaviour information on consumer and commercial borrowers, Ibrahim said in a statement.

Emcredit also has established data-sharing agreements with several government departments to empower its information solutions. These government entities include Abu Dhabi Department of Economic Development, Dubai e-Government, Dubai Police, Dubai Department of Economic Development, Dubai Land Department and its subsidiary, the Real Estate Regulatory Authority, the statement said.

The decree appointing Emcredit as the official credit bureau of Dubai, issued by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, is now published in the Dubai government’s official gazette No. 348, the statement said.

The decree outlines 16 articles regulating Emcredit’s operations.

Emcredit’s range of services include accurate and timely information solutions such as credit bureau services, cheque-honouring reports, business background reports and other risk assessment tools. Emcredit’s decision support tools enable private and public entities to gain greater perspective into the risk profiles of individuals and companies, thereby empowering them to make more informed business decisions.

“The decree is a landmark event in creating a conducive environment for credit information sharing as well as strengthening the financial infrastructure of the emirate,” said Ibrahim. “The decree has brought greater confidence to all stakeholders of the credit reporting industry, and since its announcement in early May 2010, Emcredit has engaged with several banking and financial institutions to initiate the data-sharing process. The publication of this decree in the official gazette will add further impetus to the process.”

The decree mandates all data providers, including banks, financial institutions, government departments, operating in Dubai, to provide Emcredit with the required credit information. The decree stipulates the criteria and standards for compliance, as well as set penalties for non-compliance or withholding information from Emcredit.

As per the articles of the decree, Emcredit is responsible for determining the list of data elements, methods and frequency of data sharing, as well as setting the membership rules, code of conduct, fees and the list of authorised users.

Sami Al Qamzi, Director General, Dubai Department of Economic Development, said the decree would help SMEs in gaining better access to credit, giving them the much needed impetus for growth. “Representing nearly 95 per cent of all firms registered in the UAE, small and medium enterprises significantly contribute to the development of the country’s growth. However, lack of credit information on SMEs has led to limited access to credit, 
preventing expansion.”

Hani Rashid Al Hamli, Secretary General Dubai Economic Council, said Emcredit represents a significant step towards transparency in the local economy in general and the financial sector in particular.

He said the bureau would be an effective means that enables businesses in different sectors to realize opportunities available in the markets.”It provides solutions regarding information relating to credit and businesses and hence enables the companies to take right decisions. It helps to build a sustainable financial sector based on its high levels of security regarding the financial information which is the corner stone of the banking activities.” 


issacjohn@khaleejtimes.com