Picture for illustrative purposes only. ARCHIVE

UAE residents could soon see their rental and property service payments directly affecting their credit scores, according to Marwan Ahmad Lutfi, Director-General of the Etihad Credit Bureau (ECB). In a move to tighten credit assessments and encourage financial responsibility, the ECB is preparing to expand its current credit scoring system to include property-related transactions. This includes rent payments for tenants and service charges for property owners. “If someone’s not making a payment on their property service charges, it should go into part of their credit behavior,” Lutfi said. “This is how it is in mature consumer markets, and we expect to introduce the property payment part sometime this year.” Until now, credit scores in the UAE have been determined by how individuals manage loans, credit card bills, and utility and telecom payments. This upcoming shift marks a significant evolution in how creditworthiness will be measured – and it has already begun to show signs. “I missed a property payment this month and I received an email from my bank telling me it will affect my credit score. This is the first time I have received such a warning,” a resident told Expat Media, highlighting how seriously financial institutions are taking the upcoming changes. Lutfi confirmed that the bureau is working with various land departments and regulatory authorities across the emirates to gather data securely. This includes tracking rental obligations and disputes filed with rental dispute courts. The rollout of this change will be gradual. Rental payments will be the first to be integrated, followed by service charge obligations. A third component will soon follow: offplan property commitments made by buyers. “We believe offplan payments are just as important to be tracked on the UAE credit score,” said Lutfi. “Some of the risks associated with non-payments by buyers have been communicated to us by developers.” While developers often have legal recourse to reclaim properties in the event of default, Lutfi says the bureau aims to create a system that prevents such issues before they escalate. “If there are ways to avoid the legal issues associated with those properties, it’s good for the individual, the developer and the economy,” he explained. This credit score overhaul is expected to increase accountability and provide financial institutions with a more holistic view of an individual’s reliability. Experts believe the move will enhance transparency and improve financial stability in the UAE’s property sector. With the changes on the horizon, UAE residents – whether renting, owning, or buying offplan – are advised to stay current with all their property-related obligations or risk their credit scores taking a hit. ICA/Expat Media
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