Under the patronage of His Excellency Dr. Tawfiq bin Fawzan Al-Rabiah, Saudi Minister of Commerce and Industry and Chairman of the Board of Directors of the Saudi Authority for Certified Valuers (TAQEEM), and in the presence of leading experts and specialists from the International Institute of Business Valuation (IIBV), and other organizations, the Saudi Authority for Accredited Valuers (TAQEEM) launched the events of its conference: "The Present and Future of the Economic Valuation Profession in the Kingdom," last week at The Ritz-Carlton Hotel in Riyadh.
The utmost importance of the valuation profession
At the start of the opening ceremony, the Secretary General of the Saudi Authority for Certified Valuers (TAQEEM), Mr. Essam Al-Mubarak, welcomed the attendees, praising the support of the Authority’s Chairman, the Minister of Commerce and Industry, and spoke about the importance of the valuation profession, which is needed by most sectors—such as banks, insurance companies, real estate firms, and government agencies involved in expropriation—to assist them in making critical economic decisions; such as decisions regarding purchase, sale, acquisition, merger, partnership dissolution, inheritance, dispute resolution, compensation, and determining the feasibility and implementation of investments, among others."
International Cooperation Agreements for Appraisers
In his speech, His Excellency Dr. Al-Rabiah described the Saudi Authority for Certified Valuers as one of the key bodies serving and strengthening the national economy, as well as regulating and overseeing the profession, and for training professional cadres capable of determining the true value of all commercial assets and economic facilities. He also praised the presence of experts from the International Institute of Business Valuation, which demonstrates the strength of cooperation between the Authority and international organizations and bodies specializing in valuation. The Authority has signed a series of international cooperation agreements with the Royal Institution of Chartered Surveyors (RICS), the Malaysian Institute of Valuers, and the American Society of Appraisers, with the aim of benefiting from international experience in this field.
He added: "Pursuant to its regulations, the Authority has worked to establish the necessary controls and standards for the valuation of real estate, economic facilities, equipment, movable property, and the like, to develop the valuation profession, raise the standards of its practitioners, and transform it from a commercial activity into a prestigious profession with its own standards and independent accreditation."
The Impact of the Valuation Industry on the Economy
The actual conference program began, with the first day’s sessions focusing on international qualification requirements for business appraisers, the current state of economic entity valuation in Saudi Arabia, and the requirements for valuing them in accordance with international accounting standards, the valuation of economic entities of companies not listed on the capital market, and the importance of professional valuation by qualified specialists. Mr. Abdullah Hamad Al-Fawzan, Chairman of the Board of Directors of KPMG in Saudi Arabia, the Middle East, and South Asia, emphasized that the valuation industry is a sophisticated global industry governed by numerous international standards, and that it positively influences many activities such as real estate valuation and asset valuation. Al-Fawzan noted that the valuation industry is an extension of our role as accountants and statutory auditors; we believe in the importance of developing the profession and taking it to new levels that will bring the valuation industry in the Kingdom up to the level of global valuation industries.
Regulations Governing the Valuation Profession
During the second day’s sessions, speakers focused on the role of the International Valuation Standards Council in establishing globally agreed-upon professional standards and the necessity of adhering to them when appraising any economic entity, They also presented the executive regulations for the valuation of economic entities, discussing the academic degree required of the appraiser, the training requirements they must meet, in addition to experience requirements, licensing and registration conditions, as well as the obligations of certified evaluators and the general ethics and conduct expected of them. Eng. Sultan Al-Jrees, Deputy Secretary-General of the Authority, noted that the main objective behind holding this conference was to collaborate with the International Institute of Business Valuers to solicit the opinions of participants and specialists in economics and accounting regarding the executive regulations that the Authority will issue to regulate the valuation profession, and these regulations will be adopted after consultation with those specialists.
The True Meaning of Valuation
Regarding the meaning of the required valuation, the Authority’s Deputy Secretary-General clarified that valuation means determining the true value of an entity, encompassing all government and private economic entities, and must be conducted by appraisers who have completed the qualification programs required by the Authority. “Valuation in this form serves as an attraction for foreign investment and a stimulus for the country’s economy on the one hand, and provides reassurance to local investors on the other.”
For her part, Samar Obaid, Strategic Services Partner at Ernst & Young, considered valuation a key driver of economic recovery at this time, especially as listed companies navigate multiple scenarios requiring a specific valuation of economic entities, which reduces investment risks and positions the entity correctly relative to its peers.
