Emcredit highlights role of public-private partnerships in boosting transparency

A senior official of the company highlighted that information-driven tools are crucial for the long-term growth of the UAE, in particular for the financial and real estate sectors.

Emcredit's statement comes in the wake of recent reports on high consumer borrowing levels in the UAE. Ali Ibrahim, Managing Director of Emcredit, said that financial institutions need to gain better perspective on their customers in order to maintain a sustainable lending environment in the future.

He added:

"Credit is the powerhouse of any economy. It injects energy that is required to drive business growth and empowers consumers' livelihood. With comprehensive insight into the financial character of existing and prospective customers, lenders can ensure healthier growth of their lending activities while minimising the risk of payment defaults. This can be achieved through close working of public and private sectors and data-sharing efforts from banks and financial insitutions."

"The UAE has always been an early adopter of new initiatives and practices in business and technology, yet it lags behind in embracing information-driven decision making - a trend that has been well established in most developed markets around the world."

Ibrahim cited that the leadership of the country has repeatedly stressed on the need for more cohesive efforts by public and private sector organisations in order to drive greater economic efficiency. He oulined that decree No. 6 of 2006 issued in March 2006 by His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, mandates all credit grantors and businesses registered in Dubai to provide relevant credit information to Emcredit for the creation of a robust, nationwide credit information system.

Ibhraim said:

"Among those utilising credit information to make more informed business and lending decisions are Amlak Finance, Dubai Islamic Bank, Citibank, Noor Islamic Bank and Better Homes. These entities are championing the use of credit information to gain competitive advantage, minimise risk and enhance profitability of their operations."

Ibrahim also lauded the role of Government sectors in supporting the credit industry. "We have witnessed tremendous support from the government deparments including Dubai Police, Dubai Public Prosecution, Dubai e-Government, Dubai Land Department and the UAE Ministry of Interior, who have all become early participants in the information sharing drive. These departments have set a high benchmark for private sector firms."

Ibrahim added that the new mortgage law will positively impact the real estate industry in Dubai and lead to greater transparency in the sector. Emcredit recently collaborated with Dubai Land Department's Real Estate Regulatory Agency to develop a Property Profile solution, which provides details on title deed information, real estate exposures and property evaluation to enhance transparency in property transactions.

Emcredit is based in the Dubai International Financial Centre and operates in line with the DIFC's Data Protection Law, ensuring the confidentiality and security of collection and usage of its credit information database.