Emcredit, the UAE’s first private credit information company, has been recognised by the World Bank as a significant factor in the UAE’s reforms to boost business environment in the country. According to the World Bank’s Doing Business Report 2009, Emcredit’s collection of “information on the repayment pattern of individual borrowers as well as firms has allowed better supervision of the debt level of banks and borrowers.”
The report highlights that Emcredit has been instrumental in improving the UAE’s position by 48 points in the area of credit information, moving up from 116th position in 2007 to 68th position in 2008. This has also facilitated the UAE’s overall performance in the report to improve by eight ranks to now reaching the 46th rank in the overall Ease of Doing Business.
Emcredit’s coverage of the credit market and the specifics of its business model has helped the UAE achieve a score of 5 in the Credit Information Index section of the report. This score places the UAE above the MENA and OECD average.
The Doing Business Report, undertaken annually by the World Bank, provides objective evaluations of business regulations and their enforcement across 181 economies and selected="true" cities at the subnational and regional level.
“His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of UAE and Ruler of Dubai, has stressed on the importance of improving the UAE’s position in the Doing Business Report,” said Ali Ibrahim, Managing Director of Emcredit. In line with his vision, Emcredit had met with officials from the World Bank in early 2008 to update them on Emcredit’s efforts in enhancing the UAE’s credit information sector.
“We are very pleased that Emcredit has played a pivotal role in fostering a conducive business environment in the UAE. This is also an outcome of Emcredit’s business model, which includes data from both public and private sources on the payment and repayment habits of both individuals and companies,” said Ibrahim. “Our aim is to help financial institutions and business entities gain better perspective on their customers, in order to make more informed lending and business decisions. The results of the Doing Business 2009 report makes clear that we are well on track to achieving our goals.”
Ibrahim also called for greater cooperation from the public and private sectors in order to strengthen the credit information system and boost efficiency and transparency in the economy. “In just two years of our operations we have seen such a positive result for the UAE. We are confident that with more support from government departments, banks, financial institutions, real estate companies and other business entities, we can increase Emcredit’s information coverage and can jointly drive even further improved economic performance,” he added.
Since its launch in November 2006, in accordance with Decree 6 of 2006 issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of UAE and Ruler of Dubai, Emcredit has rapidly expanded its member base and has signed several agreements with leading financial and non-financial institutions. These include Citibank, Dubai Islamic Bank, Dubai Bank, Amlak Finance, Better Homes as well as government departments such as Dubai e-Government, Dubai Police, Dubai Public Prosecution and an exclusive agreement with Dubai Land Department’s Real Estate Regulatory Authority.