Credit bureau approval welcomed by industry

The UAE Cabinet's approval for the establishment of a credit bureau is welcome news for the country's numerous banks and financial institutions. "This is a significant step in the development of the UAE's economy and its financial system," Sanjay Uppal, Group CFO, Emirates NBD, told Emirates Business.

"Visa supports the launch of a federal credit bureau in the UAE and believes it will contribute to the development of a more secure lending environment, benefiting the entire financial sector," added Kamran Siddiqi, Visa Inc, General Manager, Mena.

Although the liquidity position of UAE banks has improved considerably since the beginning of the economic crisis, they are being extremely cautious with their lending process, with some analysts expecting the banks' collective non-performing loans to go up as the tail of the recession begins to wag and individual and corporate default rates edge higher.