DEBT ISSUES PLAGUE UAE RESIDENTS, SAYS FIRM

By Abdul Muin Majid

DUBAI, Aug 16 (Bernama) -- The lack of stringent credit ratings policies
and the consumerism culture has lead to huge bad debts in the United Arab
Emirates (UAE), according to an official at a Dubai-based credit counselling
and debt management company.

Yohannes Mazeingia, Managing Director of International Swiss Debt Management
(ISDM) Consultancy, said a recent client survey revealed the average individual
debt was around 500,000 dirhams (US$136,132) in this Gulf nation.

"This is a serious issue that needs to be addressed before it goes out of
hand," Mazeingia said in a statement.

Statistics compiled by the firm showed that around 85 per cent of UAE
residents were in debt, of which 75 per cent were men and 25 per cent women.

In terms of total debt by nationality in UAE, residents from India and
Philippines ranked the highest, followed by Pakistan and South Africa.

Launched in the region early this year, ISDM, works with a number of
regional banks to help individuals and small businesses reduce their debt
burd en.

It currently services more than 3,000 clients.

"We're currently proactive in UAE, but do get distress calls from people
in India, Pakistan, Europe and the Philippines," Mazeingia added.
-- BERNAMA