Posted by Bob Brunskill
Emcredit, the UAE's first government-backed credit bureau, has signed an agreement with the Abu Dhabi Islamic Bank (ABID) to provide credit information services that will support financing activities in the region.
ABID has been a leader among Islamic banks in developing its risk management practices. It will be the first Abu Dhabi bank to become a full member of Emcredit in a move that will support investment in UAE businesses.
Under the agreement, ABID will provide payment and repayment records of its customers to Emcredit's data pool, while in return the bank will benefit from Emcredit's comprehensive credit information reporting and risk assessment services. These are based on data compiled from a range of public and proprietary sources.
Ali Ibrahim, managing director, Emcredit said that the agreement was crucial to a better understanding of customer repayment behaviour in the UAE. "Credit bureaus are based on the concept of collaboration. ABID has taken the lead in Abu Dhabi to support the data sharing environment in the UAE," he added.
Investment plans in Dubai were given a major boost earlier this month when the government of Abu Dhabi agreed to provide funds of AED 10 billion to the Dubai Financial Support Fund to cover a series of upcoming obligations on Dubai World.