Emcredit - News - UAE Credit Information Law significant step for data protection, says Emcredit

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UAE Credit Information Law significant step for data protection, says Emcredit

March 11, 2009

Draft law approved by FNC fosters conducive
environment for credit data sharing

Protects privacy rights of individuals

Reflects maturing of credit information sector in UAE

Emcredit on technical advisory committee for law

Emcredit, the UAE’s first government-backed credit information services company, hailed the Federal National Council’s (FNC) approval of a draft Credit Information Law as a significant step in fostering a conducive environment for data-sharing. Ali Ibrahim, Managing Director of Emcredit, said that the new law will 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.

Since early 2007, Emcredit has played an integral role in providing industry know-how in facilitating and managing information sharing to a Technical Advisory Committee tasked with creating a federal regulatory framework that regulates credit information. The framework ensures that information needed for accurate decision-making is shared while guaranteeing that the privacy and confidentiality of personal information is maintained in line with international best practices.

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

“In addition, the law is an important step towards further protecting the privacy rights of the public. We believe information is the cornerstone of a knowledge-based economy, and privacy is the right of every individual.

“The Credit Information 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.”

Since its inception in 2006, Emcredit has signed several agreements with leading financial and non-financial institutions to enrich its database. 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 and UAE Ministry of Interior.

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About Emcredit:

Emcredit is the UAE’s pioneer information services company. It provides a range of comprehensive, accurate and timely information solutions such as credit bureau services, cheque-honouring reports, business background reports and other risk assessment tools. Emcredit’s decision support tools enable private and public entities to gain greater perspective into the risk profiles of individuals and companies, thereby empowering them to make more informed business decisions.

The company has a rich database on individuals and companies in the UAE, including 5.6 million consumer identification records, payment behaviour information on consumer and commercial borrowers and 35 per cent of mortgage data in the UAE. It has established data-sharing agreements with several government departments, to power its information solutions. These government entities include Dubai
e-Government, Dubai Police, Department of Economic Development (DED), Dubai Land Department and its subsidiary, the Real Estate Regulatory Authority.

Emcredit is registered as a private entity and is based in the Dubai International Financial Centre (DIFC), which is regulated by the Dubai Financial Services Authority (DFSA). Emcredit operates in line with the DIFC’s Data Protection Law.

Emcredit was incorporated in January 2006 under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. It is a fully owned subsidiary of the Department of Economic Development (DED), Government of Dubai.

For further information, please contact:

Sudha Hemmad / Gunjan Chaurasia / Nicholas Nesson

ASDA'A Public Relations

Tel: (971 4) 3344550 Fax: (971 4) 3344556

Email: s.hemmad@asdaa.com /g.chaurasia.@asdaa.com / n.nesson@asdaa.com