Abu Dhabi Government has announced it will become the first emirate in the UAE to officially adopt International Valuation Standards (IVS) to its new rules and regulations for land and property valuations. The move is expected to further enhance business and investor confidence in the market through IVS - an international benchmark for consistent, efficient and transparent valuation practices.
As the largest emirate of the UAE, Abu Dhabi is fast becoming a vital hub for international business. New measures were introduced earlier this year to encourage growth of foreign direct investment (FDI) to more than 14.5 per cent each year - a benchmark set in 2017. The UAE’s efforts to boost FDI is part of an initiative, which aims to see non-oil sector contributions to the economy increase from 70 per cent to 80 per cent by 2021.
Sir David Tweedie, IVSC Chair of the Board of Trustees, said:
“Reliable valuation data is absolutely imperative to investors and businesses at large, as it underpins every investment decision, supports the appropriate management and mitigates risk. Despite the global nature of business today, investors too often have to wrestle with inconsistent standards and levels of professionalism when it comes to valuation. Often, the result is that they are unable to say with certainty that an asset is being valued in line with their needs and with their understanding of the global marketplace. For Abu Dhabi to take decisive action in this regard is hugely significant and commendable. Responsible governments can look to international standards as a means of supporting growth and investment, while safeguarding financial markets for the public good. Abu Dhabi is leading by example for other governments and regulatory authorities around the world.”
The IVS are a global set of valuation standards developed and administered by the International Valuation Standards Council (IVSC) - an independent organisation that creates greater confidence and public trust in the valuation process with its robust international standards, technical expertise and professionalism. Supported by the likes of the World Bank Group’s International Finance Corporation (IFC) and in close collaboration with other standards organisations, including the International Accounting Standards Board (IASB), the IVSC aims to improve the quality, consistency and comparability of valuation data available to investors.