Real Estate - Updates
The Minister of Commerce and Industry, Dr. Tawfiq Al-Rabiah, issued a ministerial decree mandating the promulgation of the executive regulations for the Certified Appraisers System—“Real Estate Branch.” The decree also included procedures for managing the transitional phase.
A statement issued by the Saudi Authority for Accredited Appraisers clarified that Dr. Tawfiq Al-Rabiah’s decree requires anyone practicing the profession of appraisal to be a member of the Saudi Authority for Accredited Appraisers by March 20, 1437 AH, corresponding to January 1, 2015.
The decision also required anyone practicing the valuation profession to pass the qualification exams set by the Authority to meet one of the accreditation requirements before the end of the transitional period stipulated by law on 13/3/1439 AH, corresponding to December 1, 2017 AD. The ministerial decision granted a special exemption to those holding a university degree in the specializations approved by the Authority.
It should be noted that the Board of Directors of the Saudi Authority for Accredited Appraisers, at its sixth meeting held recently, approved the final version of the regulations after the draft regulations had been finalized following consultations with stakeholders in the appraisal profession through meetings organized by the Authority and through a public opinion survey conducted on its website. Membership in the Saudi Authority for Certified Appraisers will be required by the beginning of next year.
The national economy stands to benefit most from the implementation of the real estate valuation system, as does the Kingdom’s construction sector. Furthermore, the implementation of
the system will have social impacts, including the creation of new jobs, an expansion of the housing stock, expected commercial growth, and the development of the
real estate sector, which is one of the fundamental pillars supporting the national economy.
The Kingdom’s real estate market is expected to benefit directly from the implementation of the real estate valuation system, as the valuation system
plays a fundamental and effective role as the cornerstone of any real estate system worldwide, and it is only natural that
it contributes to achieving the real estate market’s objectives in accordance with the valuation and asset system
