Big UAE banks ‘not using Al Etihad Credit Bureau reports’

The head of the country’s main bankers’ group says big banks are not using a new system for checking creditworthiness because of confusion over liability for inaccurate data.

The Al Etihad Credit Bureau, which began issuing credit reports last week, now has more than 95 per cent of financial data on individual customers in its systems.

But banks have so far not used the reports – which include data provided by their competitors – to assess the creditworthiness of clients, said Abdul Aziz Al Ghurair, chairman of the UAE Banks’ Federation.

“They will not use it until the liability and responsibility for the information are clear,” he said.

The credit bureau is designed to strengthen the banking system against bad debt by individual customers and – eventually – corporates. Banks are obliged to hand over customer information to the credit bureau. But any bank seeking to use this pooled information in a credit report must obtain permission from the customer before so doing.

Mr Al Ghurair said it was the responsibility of the UAE Ministry of Finance to clarify the situation with regard to liability for any inaccurate data.

A statement from the credit bureau said: “More than 30 subscribers including banks and lending institutions within the UAE are currently benefiting from the bureau services.

“All banks and financial institutions are welcome to utilise its services and those that do not may find themselves at a disadvantage in the long term. The bureau is committed to the principle of fairness and equality in its operations. It welcomes feedback from all stakeholders and recognises that credit reporting is an evolving process internationally,” it added.

A senior lawyer who did not want to be named said: “It’s a bit strange for banks to be saying this, as although they have to seek customer consent, they’re obliged to provide this data under the terms of the federal law. They participated fully in the various consultations while the law was being drafted.”

fkane@thenational.ae

jeverington@thenational.ae Additional reporting by Mahmoud Kassem

The specs

Engine: 3.9-litre twin-turbo V8

Transmission: seven-speed

Power: 620bhp

Torque: 760Nm

Price: Dh898,000

On sale: now

Saudi National Day

Why the UAE has many reasons to celebrate its closest friend and ally

Groom and Two Brides

Director: Elie Semaan

Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla

Rating: 3/5

Abu Dhabi card

5pm: Handicap (TB) Dh100,000 2,400m

5.30pm: Wathba Stallions Cup Handicap (PA) Dh 70,000 2,200m

6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000 1,400m

6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000 1,400m

7pm: Handicap (PA) Dh85,000 1,600m

7.30pm: Maiden (PA) Dh80,000 1,600m

The National selections:

5pm: Valcartier

5.30pm: AF Taraha

6pm: Dhafra

6.30pm: Maqam

7pm: AF Mekhbat

7.30pm: Ezz Al Rawasi

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer