Company backs new credit checks law proposal

CREDIT LAW: The UAE's first credit information services company has backed moves for a new law on credit checks. (Getty Images)

Emcredit, the UAE’s first government-backed credit information services company, has welcomed news of the Federal National Council’s (FNC) approval of a draft credit information law.

Company officials said it was a "significant step in fostering a conducive environment" for data-sharing.

Ali Ibrahim, managing director of Emcredit, said that the new law would bring greater confidence to all stakeholders of the credit reporting industry, enhance the privacy of data of individuals and companies, and facilitate the sharing of credit information to support credit decision.

He said that the law creates a framework of rights and obligations for data providers, information users and, most importantly, the public at large.

“The credit information law reflects the maturing credit information sector in the UAE. Amidst a challenging financial environment globally, the timely promulgation of the law will immensely benefit lenders by giving them access to comprehensive credit information," he added.

"It will help them in accurately assessing the creditworthiness of potential borrowers and allow them to implement better risk management policies,” said Ibrahim.

“The law will strengthen the UAE’s economic and regulatory framework and lead to greater transparency in the financial sector. The law is especially significant in a society such as the UAE, which has a large transient population, a strong credit market and is witnessing rapid economic growth.”

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