Dubai Chamber of Commerce, in cooperation with Al Etihad Credit Bureau (AECB) and the Dubai Land Department, recently co-organised a webinar which highlighted the importance of using credit information to improving transparency and practices in the real estate sector.
The webinar, led by H.E. Abdul Aziz Al Ghurair, was attended by more than 150 businesspeople, including representatives from Dubai Chamber of Commerce member companies. Sessions and presentations identified a number of credit solutions and products provided by AECB that have enhanced competitiveness and investor confidence in the property market.
Addressing participants, H.E. Hamad Buamim, President & CEO of Dubai Chambers said: One of the key factors that has set Dubai apart from other sought-after real estate markets is the speed at which new regulation and initiatives are introduced and updated in order to meet the changing needs of investors. The use of AECB’s reports and scores by real estate companies to assess the financial health of tenants is an indication that the UAE property market is maturing and heading in the right direction.
H.E. Buamim pointed out the various benefits of using credit information, including the ability to better assess risks associated with new tenants fulfilling their payment obligations and renewals of tenancy contracts, adding that such systems are commonly used in various markets around the world.
Dubai Chambers’ President & CEO noted that Dubai Chamber Commerce is working with the Dubai Land Department as part of a strategic partnership to launch a new initiative that will see new improvements made to the RERA rental index. He added that such efforts would improve ease of doing business in Dubai and boost transparency within the real estate sector.
His Excellency Sultan Butti bin Mejren, Director General of Dubai Land Department, said: “We affirm our commitment to continue our efforts towards enhancing prospects of cooperation, and exchanging information, experiences and suggestions, with our various partners, including the Dubai Chamber of Commerce and Al Etihad Credit Bureau. This cooperation helps us to jointly contribute to ensuring the appropriate environment for those wishing to invest in Dubai’s real estate market by obtaining Al Etihad Credit Bureau’s products and accessing the credit record of potential tenants, which would contribute to making sound and thoughtful decisions by investors, and other positive results in the sector in general.”
Bin Mejren added: “The desired effect of such cooperation will undoubtedly be reflected on investors’ trust in the real estate market, which is in line with DLD’s mission and values that aim to enable transparency and integration in real estate information, systems, data and procedures. This leads to the development and regulation of the investment environment, stimulates the real estate movement, and provides access to a safe environment that contributes to achieving sustainable development.”
“The mission of AECB revolves around providing support to various sectors in the country, including the real estate sector, a key contributor to the national economy,” said H.E. Marwan Ahmad Lutfi, CEO of AECB. “The credit solutions we offer are crucial to increase the risk management capabilities of the sector by facilitating the assessment of tenant risks. Furthermore, the credit reports and specialized credit scores provided by Al Etihad Credit Bureau enable companies and individuals to obtain reports and scores that will enhance the ability of landlords to make informed investment and financial decisions that are better, faster, and more accurate based on the credit history and the possibility of tenants defaulting on their rental payment obligations, which will as a result help landlords to offer incentives to tenants such as the ability to pay rent in monthly installments.”
Lutfi added: “The real estate sector is among the sectors that will benefit greatly from the credit reports and credit scores provided by AECB, by providing companies with accurate information and comprehensive insights about the credit history of both tenants and landlords, as well as evaluating tenant risk by indicating the probability to which they are likely to default on their overall payment obligations, which will contribute to improving the risk associated with tenant-landlord transactions.”