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, he noted.

'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,' he noted.

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,” he added.-TradeArabia News Service