Abu Dhabi: Abu Dhabi Finance (ADF) has signed a Memorandum of Understanding (MoU) with the UK-based Royal Institution of Chartered Surveyors (Rics), setting out its support for the adoption of greater regulation in property valuations.
The move is designed to support greater transparency in the UAE property market with the ultimate intention of boosting investor confidence and increasing Foreign Direct Investment. ADF will use RICS Registered Valuers to perform their property valuations.
The MoU underlines ADF’s continuing focus and due diligence on risk management and healthy internal quality assurance in respect of their financing activities.
Chris Taylor, CEO of Abu Dhabi Finance, explained, “Home owners, investors, regulators and lenders all want to see a consistent, professional approach to valuations, and a move towards greater regulation of valuers will help build confidence in the market.”
“ADF is committed to maintaining a reputation for high standards and professional excellence, and that in turn means imposing the highest standards and levels of good practice amongst our suppliers and consultants. By working with Rics Registered Valuers, ADF can help promote consistency and transparency in the UAE valuation profession, and thus limit the risk faced by investors and those buying their own home.”
The Royal Institution of Chartered Surveyors (Rics) recently announced that all of their UAE members who are working in the valuation sector will be required to adopt increased levels of regulation. This will ensure that property valuations undertaken by their chartered members adhere to the strictest international valuation standards (IVS), are auditable and transparent, and support improved confidence to valuation end users, banks, regulators, auditors and other related stakeholders.
Rics developed the regulatory monitoring initiative, known as Valuer Registration (VR) following the last global financial crisis to ensure the consistent application of professional valuation standards worldwide. It is a pro-active risk based regulatory programme that evaluates and oversees the performance of valuers and provides increased quality assurance to clients.
Rob Jackson, Rics Middle East Director, said, “Rics is delighted that ADF is already working with a panel of valuation firms that ensure that property valuations are conducted using regulated professionals. The introduction of Rics Valuer Registration is a fundamental step to supporting a transparent and sustainable property market through the adoption of international standards and best practice. It will provide governments, lenders, agents and auditors access to professional, regulated valuers which complements their own internal risk management standards.”
The drive to adopt international best practice standards by the UAE Government and UAE-based lenders such as ADF could lay the foundations for a market regulatory framework which will help deliver healthy sustainable long-term growth in the nation’s property market.