Dubai: Emirates Credit Information Company (Emcredit), the pioneering credit bureau in the UAE, was made the official credit information agency of Dubai on Monday in an effort to improve transparency of financial transactions.
The appointment came in Decree No. 8 of 2010 issued on Monday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai.
This move makes it compulsory for financial institutions across the emirate to join Emcredit’s database.
"The decree mandates Emcredit to comply with the criteria and instructions stipulated by the Department of Economic Development (DED) and with the instructions and guidelines issued by the UAE Central Bank, when processing credit information,” the Dubai Government Media Office said in a statement.
The decree lays out the legal and operational framework for Emcredit and mandates it as the entity responsible for providing credit reporting services in the emirate.
“We believe that this decree will significantly strengthen the credit reporting infrastructure in Dubai and therefore the level of transparency and efficiency in the emirate’s economy. Greater participation by banks in credit reporting will also lead to more comprehensive coverage, which will benefit both businesses and consumers,” Ali Ebrahim, Managing Director of Emcredit, told Gulf News.
“Over the past four years, Emcredit has invested in building a robust technical infrastructure, developing multiple value-added products, services and credit reporting skills,” he said.
