The lexical connotation root of the "credit" comes from Latin origin "credo", which means "believe". Believing requires trust between the two parts of the equation; lenders and borrowers. Loan is the act of giving money, property or other material goods to another party in exchange for future repayment of the principal

Worldwide, a financial disaster occurred in 2008 and is considered the worst since the "Great Depression of 1929". The first indication of the 2008 economic collapse occurred in 2006 as the housing market fell significantly, regardless the fact that many homeowners with questionable credit and banks had allowed people to take out loans for 100% or more of the value of their new homes (AMADEO, 2020).

Consequently, significant weaknesses in the over-the-counter (OTC) derivatives market flashed in 2007-2008. Precisely, deficiencies in the OTC derivatives markets relating to the build-up of large counterparty risk exposures between market participants, as well as limited transparency on the market activity and in the counterparty relationships, have proven the need for regulatory reform at an international level.

In 2009, the world agreed that it's time to make amends in regards to the global financial disaster. Hence, following September 2009 summit in Pittsburgh, the G20 leaders committed to tackle less regulated and more opaque parts of the financial system, to mitigate systemic risk and to improve the organization, transparency and oversight of various market segments. More specifically, G20 leaders agreed that OTC derivatives should be reported to trade repositories.

In this regard, the establishment of authorized trade repositories (TR) entities was needed each jurisdiction, The main role of these TR's would include assessing systemic risks, regulating and supervising markets, trading venues, financial market infrastructures and market participants, analyzing product and market structure analysis, conducting event studies, and making new policy or recalibrating policy. 

Saudi Central Bank (SAMA), has assigned Saudi Credit Bureau (SIMAH) to be the operator of the national trade repository and thus approve and lunch SIMAH National Trade Repository (SNTR) on 5th February 2020. Along with fulfilling the objectives and commitments of the G20 summit, SNTR  is committed to improve the quality of trade data, conduct a review of the access, process interpretation and harmonization of the TR data by incorporating Universal Global Identifiers like Legal Entity Identifier (LEI) , Unique Protocol Identifier (UPI) and Unique  Transaction Identifier (UTI). SIMAH's MOARIF

EI is a 20-digit, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. SIMAH has been accredited officially by Global Legal Entity Identifier Foundation (GLEIF) to act as a full Local Operation Unit (LOU). SIMAH has launched its non-profit MOARIF  to be utilized  to identify legally independent entities and companies. MOARIF  allows companies to comply with various reporting requirements, while at the same time enhancing transparency. It helps measure and monitor systemic cross boarder payment transfer risk, enables regulators globally to more accurately obtain a view on risk to the financial system, helps individual firms more effectively measure and manage counterparty exposure through a common view of legal entities across the organization and promotes coordination. MOARIF  has issue more than 612 identifiers by end of June 2020.

In the first stage, the reporting obligation to SNTR in Saudi Arabia will be only enforceable for two asset classes of derivatives: Foreign Exchange and Interest Rate, which represent nearly 85% of all OTC derivative transactions in KSA. In the second stage in 2020 – 2021 the reporting obligation will include rest of asset classes.

All things considered, SNTR is the single TR authorized to operate at local level in KSA, to which Banks and other entities subject to the reporting obligation are required to submit all transactional data, so it can be used by the SAMA for supervision purposes.

(Saudi Credit Bureau) SIMAH is the leading credit bureau in the MENA region, serving individual consumers, small businesses and large corporations with a full range of credit and financial and risk management products and services.

Established in 2002, and operating since 2004 SIMAH has issued more than 104 million credit reports since 2004 with data quality score of 99.4%. Serving over 17.2 Million customers and having over 63 Million CI's, SIMAH is the largest credit bureau in the MENA region offering industry-leading product and services like SIMAT (Business Solutions), SIMATI (Consumer Solutions) and Value-Added Services (VAS) to cater to business and consumers alike.

SIMAH offers integrated solutions in the domain of analytics and decisioning with its subsidiary QARAR making it the first bureau linked analytics company in the region. MOARIF (The Legal Identifier), SNTR (SIMAH National Trade Repository) and TASNIF (SIMAH Rating) are also managed and operated by SIMAH ensuring vertical and horizonal integration of services.

SIMAH head office is based in Riyadh and can be reached on www.simah.com