The UAE’s much-anticipated new consumer credit bureau will open in September, offering consumer credit reports to financial institutions.

The Al-Etihad Credit Bureau aims to reduce credit losses to banks and other lenders by providing greater depth of information on potential borrowers.

The credit reports will include records of consumers’ debt levels, financial obligations, credit payments and their track record of default on late payments.

So far, the bureau has uploaded six months of credit data and information collected from financial institutions.

A total of 5.2 million credit facilities of individuals living in the UAE have been put onto the credit reporting system.

The bureau will be welcomed by the banking sector, which is keen to have access to better credit information on potential customers to help inform their lending decisions. However, it is expected to dampen some banks’ lending volumes initially as they reassess their potential customers.