Business & Money | Thursday 18 February, 2016 3:46 pm |

The Saudi Authority for Accredited Valuers devotes itself to accomplish set of developments which would reflect positively on the real estate section of valuation, and then on the financing body. The Secretary General of the Authority, the Engineer Issam bin Hamad Al Mubarak revealed that during a workshop organized by Al Rajhi Bank, entitled "the real estate valuation and its impact on the financing section", which was held on the sidelines of Jeddah Exhibition for Real Estate and Housing 2016, which concluded its activities few days ago. Al Mubarak – who was the main speaker in the workshop - clarified that the Authority will work with Saudi Arabian Monetary Agency (SAMA) to come out with mechanism that determines the general framework of the demands of the real estate valuation for the real estate financers. He added that there will be an insurance on the valuation quality in the context of the policy of real estate valuation oriented to financiers. And the Authority will provide a new service during the coming months, which allows the financing bodies obtaining the valuation reports from the Authority website, which gives more credibility in the valuation results.

It is known that the Saudi Authority for Accredited Valuers is currently working and coordinating with (SAMA) and Ministry of Justice to build an information center for the property land registry. A registry will be set to determine the market value of the property or the land, according to defined standards, which set according to Ministry of Justice real estate indicator.

The organization of the workshop by Al Rajhi Bank embodies the importance of the valuation profession, and its impact on the direct and the indirect financing processes. In addition to the Engineer Al Mubarak, Yhya Mohammed Abu Hasira, the Real Estate Financing Manager in Al Rajhi Bank, and the Engineer Mohamed Yaslim Babahr, the Chief Executive Officer in Isnad Company for Property participated in the meeting. The dialogue was directed by the Engineer Mohammed bin Saleh Al-Hindi, the Delegated Member of Mafaz Arabia for Investment and Development Company. The Engineer Issam Al Mubarak started the workshop by delivering a word in which he reviewed the Authority achievements in the last period, and its role in developing and organizing the profession, to obtain the public trust and the beneficiaries from the related services, and what the Authority seeks in the future to provide activities and services to ensure providing the valuation reports professionally, which contributes in making the investment and financing decisions in the right way to preserve the finance resources.

The Engineer Mohamed Al Hindi reviewed the economical dimension to real estate valuation as a main entrance and basic requirement for economic work system, that the financing and mortgage and commercial exchange operations based on toward the establishment of new expansion projects, and enhancing the service and merchandise activities, that extends its impact on the national economic development, and capitalist formations. This was followed by a working paper under the title (the vision of Al Rajhi Bank for the real estate valuation), which was presented by Yhya Abu Hasirah, and he discussed the relevant juristic legislation and the client rights, and the valuation risk on the financing action, and the most important valuation determinations on which the  financing decision based, such as linking the funding amount with the assets value, the solvency of the assets in a case of  re-evaluation and the adequacy of the assets value in a case of default and the valuer responsibility towards it.

The workshop was concluded by a work paper entitled (the impact of the Saudi Authority for the Accredited Valuers on valuation), which was presented by the Engineer Mohamed Babaher. He dealt the real estate valuation definition, its importance, the the Authority impact in the real estate financing and the risks which might be faced by the valuer and the beneficiary and the owner. The workshop witnessed attendance in large numbers, and considerable interaction from the exhibition visitors and market makers, which is considered the largest real estate forum in the Jeddah.