UAE requires credit rating enhancement for travellers from 13 countries
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Individuals planning to travel to the United Arab Emirates (UAE) from 13 designated countries must enhance their credit ratings in their home nations before arriving in the UAE, with a focus on their financial history over the past 24 months.
This initiative specifically applies to residents who have been away from the UAE for over three years. Local lenders in the UAE can now access credit reports from these individuals' home countries to assess and improve their creditworthiness within the UAE.
The countries involved in supplying credit reports to the UAE’s Etihad Credit Bureau include the United Kingdom, India, Switzerland, Germany, Spain, Austria, Australia, Ukraine, Mexico, South Korea, the Philippines, Kenya and the Dominican Republic.
According to the Etihad Credit Bureau's official website, UAE-based lending institutions have the option to use international credit reports, particularly for new residents who have lived in the UAE for less than three years. This service enables local financial institutions to evaluate an individual’s creditworthiness using their foreign credit history.
The Etihad Credit Bureau has highlighted multiple advantages for individuals seeking loans or credit in the UAE. Key benefits include an increased likelihood of credit approval and quicker access to personal and real estate loans, credit cards and mobile phone plans. Additionally, individuals may benefit from lower interest rates and reduced loan instalments.
The bureau has confirmed partnerships with more than 13 countries through the "Nova Credit" system, which facilitates the provision of international credit reports to UAE lenders. Efforts are also underway to expand this network to include more countries in the future.
When applying for credit or financial services in the UAE, lending institutions may request a credit report from an applicant’s home country. These reports will only reflect credit transactions from the last 24 months. Before accessing an individual’s foreign credit history, the borrower’s consent will be required. Once verified, the external credit report will be shared with the lending entity to support the credit evaluation process.
The Etihad Credit Bureau emphasizes that this initiative will enhance the credit assessment process for new residents, making it easier for them to integrate financially into the UAE’s banking and lending system.