To enhance transparency and raise professionality
His Excellency the Minister of Trade and Investment, Dr. Majid bin Abdullah Al Qasabi, issued a ministerial decision to approving the Implementing Regulations of Accredited Valuers Law (Business Valuation sector). The decision has been endorsed by the Saudi Authority for Accredited Valuers board at its twelfth meeting. The ministerial decision stated that each facility engaged in the profession of economic establishment evaluation should rectify their evaluation system according to the regulations of the Saudi Accredited Valuers Law (Business Valuation sector) before 22/03/1440 H corresponding to 12/01/2018.
Implementing Regulations stated that passing four (out of five) specialized training courses - provided by the Authority in this sector (Business Valuation) - is an essential requirement for membership. The first five stages of these courses include an introduction to business valuation, and the second stage is in international capital cost. The third stage includes evaluated economic establishments case studies, and the fourth stage is advanced topics in the evaluation of the economic establishments. The fifth stage is tangible assets evaluation and advanced topics, which a person can pursue a career as a Valuer. The list defines the economic establishment evaluation which determines the value of the business establishment or property interests, whether individual or company or the rights and obligations relating to it. Valuing intangible assets such as patents, trademarks, goodwill and intellectual property. The regulations stated the classification of Valuators and the terms for practicing the profession of economic establishments evaluation and the requirements of qualification, training, and license. Also, identifies the Valuators obligations and the decision are declared active immediately.
In this matter, Mr. Essam bin Hamad Al-Mubarak – the General Secretary of the Saudi Authority of Accredited valuers said: “The Accredited Valuers Law issued by Royal Decree No. M/43 on 09/07/1433 AH, entrusted the Authority to set the regulations and criteria for the assessment career to develop it and raise the performance level of the employees. For this purpose, the authority has to join the Council of International Institute of Business Valuers (IIBV). The authority signed an agreement with the Institute that states the authority as the exclusive academic partner in the Arab region. The Authority began the specialized training courses for business valurs in many local institutions. Implementing seven courses in economic establishments evaluation, both in Riyadh and Jeddah, attended by 90 trainees, 16 of the trainee completed temporary requirements for membership at the Authority in the sector of Business Valuation. The Authority rehabilitation plan for this year includes presenting five training courses, two in Riyadh on October 16 to 20, 2016 and December 18-22,2016. One course in Jeddah from 11 to 15 December 2016, one course in Dubai 9-13 October 2 016, and one course in Cairo 2-6 October 2016.
The rules of regulations explained that it is a right of the active and licensed establishments in financial, accounting, economic consulting or related fields, to issue an independent professional license in economic establishment evaluation and gave details in Authority memberships requirements in this sector. And also a restriction terms in economic establishments’ valuers records. It is worth mentioning that university students with bachelor's degree in science majors or accounting, economic or financial entitled to a 50% discount on all services provided by the Authority”.
This decision helps the transfer of knowledge, experiences and raise the proportion of localization of Saudi manpower in this profession, will also contribute to achieving the Saudi vision 2030 and to implement the objective that Saudi Arabia will be the leading investment force by enabling many quality investments and projects that will contribute to the economy and raise growth on a regular basis, making Saudi Arabia one of the strongest economies in the world.
To view the Implementing Regulations of Accredited Valuers Law (Business Valuation sector), please click here