Posted by Neil King
The proposed Federal Credit Bureau will bolster the banking and financial sectors in the UAE by promoting strong risk management practices in the emirate, experts have claimed.
Ali Ibrahim, deputy director-general at Dubai Department of Economic Development, said the bureau will bring confidence to all stakeholders in the credit reporting industry and strongly facilitate the sharing of credit information, Khaleej Times reported.
Meanwhile, Deepak Tolani, vice-president of equity research at Al Mal Capital, argued that the establishment of a federal credit bureau could contribute to increased lending by the banks in the short term and drive down interest rates in the medium to long term.
"It is good to see the ministry of finance move on this now," he added.
Last week, economic minister Sultan Bin Saeed Al Mansouri claimed that economic growth in the UAE will more than double to 3.2 per cent this year thanks to strengthening oil prices and increased business activity.