The results of ''Taqeem'' conference have impact on market activities during coming period

Discussed the future of the business valuation profession in the kingdom

"The Reality and Future of Business Valuation in KSA " conference - which was organized by The Saudi Authority for Accredited Valuers (Taqeem) with the cooperation of the International Institute of Business Valuation (IIBV), on the third of November - succeeded in coming up with recommendations for the final formulation of the implementing regulations in the field of business valuation, which aim at developing the valuation of economic business and organizing it. That enhances the valuation sector in the Saudi market, and completes the stable economic fields. The results of the market study, which was carried out by the Authority was also reviewed for the current situation of the business valuation in the Kingdom.

Economic analysts have not ruled out the fact that the conference may have effects on the reality of the economic market in the coming period, specifically on the banks , insurance companies and real estate companies, to assist them in making important economic decisions, like buying , selling , possession , merging  , the division of companies, the inheritance, disputes settlements, compensation decisions, the determination of the investments goals and the implementation of it. The last decision of The Saudi Authority of the Accredited Valuers, which decrees that all the activities of the business Valuers – those who don’t have the Authority membership - shall be stopped. This decision would support the need to the Authority services. The Authority notifies the Ministry of Justice and the Saudi Arabian Monetary Agency (SAMA), to adopt the valuation of the valuers who have granted "temporary" main member status from the Authority, indicating that any other valuation is not accredited.

Great number of employees in this sector participate in the activities of the forum and its educational programs, which emphasize the importance of the reliance on the accredited Valuers, who works in accurate and scientific way and according to international rules and standards, that guarantee reaching accurate economic business valuation, preserve the banks rights, the financer companies, the agents or the economic developer. Analysts believers that the date of the conference was good, indicating that the government of Saudi Arabia, which focused on the housing issue consolidates the financing programs in the Saudi market as one of the housing crisis solutions in the country. That will requires equally activating the valuation programs, which guarantee and protect the financers rights.

 The observers of the economic affairs in the kingdom expect that the impact of the conference activities shall appear successively on the events of the market and its activities during the coming period. They thinks that the conference determined its public goals accurately and endeavored to achieve them in reality gradually. And among these goals, defining The Saudi Authority of Accredited Valuers, and the role that the Authority may play in the real-estate sector in enhancing the scientific valuation programs, according to the international standards aiming at developing of this sector, and converting the valuation from commercial activity to profession with stable clear system, and accurate standards the Valuer works according to.

Number of analysts and economists get optimistic about the result of the "The Reality and Future of Business Valuation in KSA" conference and what might cause as a positive reaction towards enhancing the bases of valuation in the Saudi market. They confirm that the forum is keen to enlighten the society of the importance of valuation, its bases and mechanism, besides defining the types of business valuation in the kingdom, and the international standards followed  in the valuation operations , as well as the initiatives related to the international requested qualification for the business Valuers,  and the business valuation market currently in the kingdom, according to the international standards regarding the preparation of the financial reports , which will be applied in the kingdom in 2017.

 Observers pointed out that the conference dealt with the importance of high quality valuation by the professionals and the specialists experts , stressing on the role of the international valuation standards and the international profession standards, as well as special presentation of the regulations draft, experience requirements , and interests conflict ,  registration and license requirements ,the obligations of the accredited valuers, ethics and code of conduct. Adding to that establishing workshop for the raising of the business valuation profession to the pioneering professions.

It worth mentioning that the Authority was established to carry out the profession of ''real estate valuation'' in the kingdom through scientific methods and specific mechanism, in order to maintain the savings and the assets of public money. The Law of Accredited Valuers was issued pursuant to Royal Decree no. (m/43), dated (09/07/1433H) defining valuation as the process that determines the fair value of real estates, economic establishments, equipment or properties of different types for a specific purpose. The authority and according to its system works on putting standards and rules requested for the valuation of real estate, economic entities, equipment, and  movable property and so on, developing the valuation profession and raising the level of its employees,  and converting the valuation from commercial activity to profession with its own  standards and independent qualification.

The Authority sets its goals to focus on them  , among of which , the preparation and the advancement of the standards for each valuation field , the organization and the supervision on the continual professional educational courses, to develop the level of the valuers ,  the participation in the international local committees and seminars in relation with the valuation profession, the preparation of studies and researches and the publication of journals and books related to the valuation profession and setting the appropriate procedures for censorship, to make sure that the accredited Valuer applies the valuation standards. The Authority granted – lately in the acceptance committee - its membership to 130 Valuers who are practicing the valuation profession in the real estate field, and who passed the personal interview and completed the membership requirements, by passing international valuation standards course, and the code of conduct and the valuation profession practices ethics.