In accordance with the directives of HH Sheikh Khalifa bin Zayed Al Nahyan, the President of the UAE and Ruler of Abu Dhabi and HH Sheikh Maktoum bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to enhance co-operation and joint co-ordination between government departments in the country and with the support of HH General Sheikh Mohammed bin Zayed Al Nahyan, Deputy Supreme Commander of the UAE Armed Forces and Crown Prince of Abu Dhabi and HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Defence Minister, Crown Prince of Dubai and Chairman of the Dubai Department of Economic Development (DED) and HH Sheikh Hamed bin Zayed Al Nahyan, Chairman of Abu Dhabi Department of Economy and Planning (ADDEP), the two emirates plan to take steps towards working together in order to serve public interest.
In keeping with this, the Abu Dhabi Department of Economy and Planning (ADDEP) and the Dubai Department of Economic Development (DED) announced that they had signed a Memorandum of Understanding (MoU) to continue with the development of a Credit Bureau in the UAE as a joint venture. The Credit Bureau will be established using modern technological infrastructure to monitor the creditworthiness of individuals and organizations.
The historic agreement, which marks the first ever joint venture project between the two economic departments in Abu Dhabi and Dubai was signed in Abu Dhabi on July 3, 2005. H.E Mr. Salem bin Mohammed Al Daheri, Under-secretary in the Department of Economy and Planning, signed the agreement on behalf of the ADDEP while the DED was represented by Mr. Ali Ibrahim, Deputy Director General, DED.
Both the economic departments will share equal equity stakes in the venture, which will operate as an independent private entity. The credit bureau is considered a strategic initiative by both departments due to its impact on economic development, and will operate as a professionally managed entity in accordance with International standards.
The two departments also took this opportunity to express their appreciation to HE Mr. Sultan bin Nasser Al Suwaidi, Governor Central Bank of the UAE for supporting and encouraging the implementation of the project. The two departments also confirmed that the Credit Bureau project team would work closely with the Central Bank in order to finalize all initiatives necessary to successfully bring to completion a project of such strategic significance.
“The need for an independent credit bureau has long been felt in the UAE particularly with the country positioning itself as the region’s foremost commercial hub,” said Mr. Al Daheri. “The setting up of an independent credit bureau will add value to that goal by promoting economic growth and improving accessibility to risk management tools. We are happy to coordinate our efforts with the DED on a project of this stature and magnitude,” he added.
“The credit bureau project has been driven by the DED’s initiative to improve the operating environment for small and medium enterprises, through the establishment of an active and advanced system to monitor credit capability and improve availability of information about small business owners to lenders,” said Mr. Ali Ibrahim, Deputy Director General for Executive Affairs, DED. “The increasing complexity of financial markets and freedom of capital movement across the globe have further underlined the crucial need for accurate and efficient credit reporting systems. We are working closely with the ADDEP to ensure that the project will offer extensive support to the business community in the country,” he added.
Consumer credit bureaus are on the rise and more than 25 bureaus have been developed worldwide in the 1990s. The credit bureau under development is expected to add value to the UAE’s image as a country that enables the use of standardized systems to measure the creditworthiness of companies. Both globally and regionally credit bureaus are usually maintained as commercial entities and this is true of other GCC countries such as Kuwait and Saudi Arabia.
About Department of Economic Development (DED):
The Department of Economic Development (DED) was established in March 1992, with the objective to organise, regulate and boost trade and industry within the Emirate of Dubai. The DED has moulded its mission of building a futuristic establishment, in accordance with the vision of the Government of Dubai and in the light of globalisation and the requirements of a digital economy. One of its key functions is to encourage local and foreign investments in commercial and industrial projects, and create the appropriate environment for investors.
The DED’s other functions comprise a wide range of regulatory activities including the preparation and maintenance of a commercial register and the supervision of all organisations. The DED is responsible for regulating the affairs of commercial agents and brokers and commercial advertising offices, in addition to overseeing and controlling the insurance industry in the Emirate. Examining the participation of the government in the private sector and representing the government in companies where it has a stake, also comes under the purview of the DED.
About Abu Dhabi Department of Planning and Economy (ADDPE):
The Abu Dhabi Department of Planning and Economy (ADDPE) was set up in 2004 by decree of the President of the U.A.E, HH Sheikh Khalifa bin Zayed Al Nahyan, in his capacity as the Ruler of Abu Dhabi, by merging the Department of Planning and the Department of Economy. The ADDPE was established with the mandate to develop the economy of the Abu Dhabi emirate and achieve comprehensive welfare to all members of society in a dynamic world, through a vision of objectivity towards domestic, regional and international horizons.
The objectives of the Department are to achieve economic development in the emirate, regulate economic and commercial affairs, and work for development of the same in the interest of the country. In order to achieve these objectives, the ADDPE proposes the economic and commercial policy of the emirate and prepares the draft general economic plan of the emirate. Laying out rules that regulate the issuance of trade and professional licenses of all types is also within the purview of ADDPE.
