A new federal credit reporting system is planned to launch on a limited scale in summer, Al-Etihad Credit Bureau announced on 30 April.

The new system will collect data from credit data providers including financial institutions, telecommunication companies and various government bodies in the UAE as well as deliver credit reports to the providers as well as the individuals it is tracking. The comprehensive reports will specifically focus on individuals’ debt levels and financial commitments.

The credit bureau aims to limit credit risks for banks and financial and service organisations in the country, which the UAE government hopes will improve the transparency of borrowing in the emirates.

“The full credit bureau services will be launched in phases to ensure a smooth integration of the new system, with the exact dates of rollout to be determined by the Federal Bureau once all research has been conducted and the relevant laws and infrastructure are in place,” said H.E. Obaid Humaid al-Tayer, Minister of State for Financial Affairs and Chairman of Al-Etihad Credit Bureau.

“The bureau has been working closely with the Central Bank and various government bodies over the past 14 months to put the necessary legislative framework in place in preparation for the launch of the UAE’s credit reporting system. The board is working hard to ensure that the framework is fully compliant with international best practice in order to bring the UAE in line with global financial standards.”