Khaleej Times writes about the results of a survey conducted by Souqalmal.com on credit reports in the UAE.

Dubai — Several residents in the UAE remain unconvinced on the need to obtain and study their credit report, and how it can help them in financial planning, a recent Souqalmal.com survey has shown.

Souqalmal.com, the region’s leading financial comparison website, did a survey of 550 respondents to find out how well the Al Etihad Credit Bureau, its role and value for consumers, is already known by the broader audience. The results of the survey showed that 37 per cent of respondents in the UAE today are aware of what a credit report is; and this awareness level increases materially as we look at more affluent consumers — typically Western expats — who are used to having a credit bureau in their home country. For respondents with monthly salaries above Dh35,000, the level of understanding of the Credit Bureau was above 60 per cent.

The announcement that the UAE would have its own credit bureau received an overall warm welcome, and was broadly seen as an important step in the development of the country’s financial ecosystem. After an intensive preparation period, the Al Etihad Credit Bureau went live in November 2014 and is now fully operational.

A credit bureau makes the lending market safer, more transparent and more liquid by giving banks and other providers of credit, such as retailers, an accurate view of a consumer’s risk profile and credit situation, and by protecting consumers from overburdening themselves with debt.

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