Dubai Govt boosts credit reporting with new law

Dubai’s credit reporting infrastructure has been given a boost after government issued a new law granting greater powers to Emcredit.

The law, announced in May, makes it mandatory for banks, financial institutions, government departments, operating in Dubai, to provide Emcredit with the required credit information.

Firms who fail to comply or withhold information from Emcredit, the official entity responsible for providing credit reporting services in Dubai, will face tough penalties.

Ali Ibrahim, Emcredit managing director, said: “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.

“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.”

To date, Emcredit has established data-sharing agreements with Abu Dhabi Department of Economic Development, Dubai e-Government, Dubai Police, Dubai Department of Economic Development (DED), Dubai Land Department and its subsidiary, the Real Estate Regulatory Authority.