The United Arab Emirates plans to set up a federal level credit bureau to provide credit information, a move that will ensure transparency in financial policy making, the ministry of finance said on Sunday.

A federal corporation in the making will be tasked with preparing reports, statements and credit ratings to help financial institutions take appropriate lending decisions, a statement from the ministry said.

The corporation will also maintain secure databases to assess repayment capabilities of current and potential creditors.

'Establishing a federal credit information center is a positive step and will be a huge support for lenders, borrowers and the macroeconomic stability of the UAE,' said Younis Haji al Khoory, director-general at the ministry of finance.

It will also enable public and private sector lenders to gain a clearer and more comprehensive view in their decision making on lending and help avoid risks, he added. - Reuters