By Gavin Gibbon
Partnership with Al Etihad Credit Bureau to help when signing up new tenants and renewing existing contracts
Dubai Real Estate Centre (DREC) will use credit reports and scores from Al Etihad Credit Bureau (AECB) when signing up new tenants.
DREC, an ARM Holding company, is the first large-scale private real estate outfit in the emirate to subscribe to AECB.
The partnership will help assess the risk associated with new tenants fulfilling their payment obligations and renewals of existing tenancy contracts.
Marwan Ahmed Lutfi, CEO of AECB, said: "We believe this is the start of a positive transformation within the property rental sector whereby tenants will undoubtedly receive added benefits for maintaining a high credit score and a good credit history.
“Mature international real estate markets use credit scores as a key factor when determining renter’s eligibility and we are delighted that DREC is exhibiting such maturity, which will ultimately benefit their portfolio of clients in Dubai.”
AECB collects information from multiple entities including banks, finance companies and telecommunication companies to produce reports, scores and indicators that are made available to individuals and companies in the UAE.
While all UAE banks and financial companies in the country analyse credit reports and scores before making the decision to approve or reject credit card or loan applications, AECB’s products and services are becoming a valuable component within the real estate sector.
Mohammad Saeed Al Shehhi, CEO of ARM Holding, said: “As the flagship real estate entity of ARM Holding, DREC’s establishment of this quality control and risk assessment standard is demonstrative of our overall approach to ensure equitable and ethical business practices and protect our investors.”