Without region-wide credit bureau, expect more Gulf corporate implosions

A pan-GCC body to exchange information on consumer and corporate debt is necessary to protect banks from borrowers with poor credit histories, analysts and bankers say.

“When you have a fragmented credit environment like the one we have in the GCC, it makes sense to have a central bureau, both from underwriting and enforcement perspectives,” said Khalid Howladar, a senior credit officer at Moody’s Investors Service in Dubai.

“This ensures a clearer picture of the borrower’s risk.”
Such a body, analysts and bankers say, can help ease tight credit conditions in the GCC, once banks are able to check the creditworthiness of a prospective borrower.