The bureau is expected to become
operational during the second quarter of 2005.
The establishment of the bureau complements the DED's drive to promote better
risk management and improve transparency within the thriving local economy.
D&B will supply the technology to support data collection and operation of
the credit bureau, which will be owned, organised and managed by the DED.
'Given the tremendous growth witnessed in the financial and retail sectors, the
establishment of the bureau is vital for the economy,' said Mr. Mohamed Ali
Alabbar, Director General of the DED. 'The Credit Bureau will enable creditors
to reduce turnaround time for credit decisions and provide higher credit to
deserving borrowers, while reducing the incidence of defaults and
non-performing assets,' he added.
'The formation of the bureau is the result of a significant initiative launched
by the Government of Dubai in its drive to help the financial community create
a neutral platform to assess risk better. The DED looks forward to continued
support from the financial community to ensure the success of this project,'
said Mr. Alabbar. 'We are happy to have tied up with a globally renowned
organisation such as Dun & Bradstreet, which has extensive experience in
setting up credit bureaus in several countries. This will ensure that the
services offered will be on par with the best available across the world,' he
added.
Mr. Ali Ibrahim, Deputy Director General, DED said: 'The credit bureau will
fulfil the financial sector's longstanding need for accurate information
pertaining to borrowers. To achieve stringent confidentiality and security, the
bureau will deploy the highest levels of technology and infrastructure, and
will be aligned to the best global practices of risk management and data
security. The technology comes from Dun & Bradstreet, which has an
excellent track record in creating credit bureaus in global markets.'
'Dubai has already established a name for itself as a rapidly growing
commercial hub, and we are proud to associate the 160-year old name of Dun
& Bradstreet with the Emirate, and indeed the UAE,' said Mr. David Emery,
President International Alliances, D&B International. 'We believe that our
extensive international expertise in the credit information industry, can be
customised to suit the needs of the financial community in the UAE,' he added.
'D&B has spearheaded numerous bureaus globally and our experience in other
markets has taught us that credit bureaus facilitate faster economic growth,'
said Mr. Rajesh Mirchandani, Chief Executive Officer, Dun & Bradstreet SAME
Ltd. 'Dubai will be able to leverage the services of a well established credit
bureau to fast track its economic growth further,' he added.
The Credit Bureau aims to serve both the consumer and commercial segments by
providing comprehensive, up-to-date information on borrower accounts. The
Bureau will maintain a database of this information and provide Credit
Information Reports (CIR's) to its members, which will include Financial
Institutions, Housing Finance, Insurance and Credit Card Companies. The Bureau
will not be involved in the decision making process, it will make CIR's
available to its members who can then make credit decisions based on more
accurate consolidated information. CIR's will only be provided to members for
the purpose of making credit decisions.
The DED has already begun a dialogue with potential members and plans on
forming an official user group that will roughly comprise the members of the
bureau. It will be working closely with the banking community to secure support
for the project.
Establishing the bureau will require the development of the appropriate
legislative infrastructure governing data sharing. This will need to deploy the
appropriate checks and balances to ensure both consumers and bureau users are
protected under the law. The DED is also taking all the necessary steps to
ensure that the bureau will be an entirely independent entity, isolated from
users and data suppliers.
