Government | Thursday 14 January, 2016 10:54 am |

The Capital Market Authority Board has announced a resolution stating that the valuers mentioned in the real estate investment funds regulations, and the necessary requirements to offering units of the real estate investment fund as a private placement, issued by Capital Market Authority board regulation on July 2015, should be key members of The Saudi Authority for Accredited valuers (Taqeem).

Starting from 11/1/2016, as per the resolution, the real estate valuation reports on the real estate investment funds proposed to Capital Market Authority to offer an investment fund or evaluate a fund's assets will not be accepted unless they are conducted by evaluators who are members of the Saudi Authority for Accredited Valuers "Taqeem".

About this resolution, the Secretary General of the Saudi Authority for Accredited Valuers Mr. Issam Al Mubarak commented saying; “the accredited valuers law assigned to the Authority the task of the organization, the qualification, the license and the control to ensure better performance of profession. The importance of the valuation profession lies in the need of the majority of sectors like banks, the insurance companies, real estate companies and the state agencies concerned in expropriation, to provide them the help in making the important economic decisions like buying, selling, mergers, acquisitions, corporate divisions and inheritance, dispute settlements, compensations and defining the objectives of investments and its implantation. From this point the Authority spares no efforts in the framework of organizing the profession. It granted 80 licenses for the practice of the real estate valuation profession after the approval of the registration committee record in the Ministry Commerce and Industry, as well as granting its temporary membership to 618 persons, they practice the profession according to international standards of valuation. And regarding qualifications, the Authority held 30 different courses last year, and it was attended by more than 950 persons.

 From its part, the Capital Market Authority considers this step as a part of the continuous efforts by the Capital Market Authority to develop the capital market especially in collective investment programs and investment funds. That is by applying the best international standards and practices in the global markets, as well as increasing the level of transparency, disclosure, and providing a safe and attractive investment environment for investment.

It is important to mention that the real estate investment funds regulations define the evaluator as a person chosen by the fund manager to evaluate the fund's assets. It is available on the official Capital Market Authority website and includes 27 Articles. Also it worth mentioning that the article number 3 from Accredited Valuers Law decrees that a natural or corporate person may not the profession in any sector without obtaining a license to practice in that particular sector.