The Saudi Authority for Accredited Valuers (Taqeem) has announced the adoption of a new and comprehensive policy for calculating the professional experience required to obtain the fellowship certificate in various valuation branches. This step comes as part of the Authority's ongoing efforts to regulate the profession and raise the competence of practitioners, thereby ensuring the accuracy of reports and protecting the rights of market participants.
A regulatory framework that aligns with Vision 2030
This policy falls within the regulatory framework that the Kingdom seeks to establish in the financial and economic sectors, in line with Vision 2030. The valuation profession is a cornerstone of preserving savings and assets, as banks rely on it for real estate financing, courts for resolving disputes, and companies for mergers and acquisitions. Therefore, setting rigorous standards for expertise is not merely procedural; it aims to ensure that the fellowship holder possesses genuine, accumulated experience that qualifies them to issue reliable professional judgments.
Details of experience hours and minimum years
The new policy clearly stipulates that experience requirements must be met through at least two years of practical experience in appraisal work at licensed facilities. To ensure proper career progression, the authority has set an annual cap on creditable experience hours, preventing the accumulation of hours in short periods without acquiring genuine skills.
The authority has specified the required hours for each branch as follows:
- Real estate appraisal branch: Requires 3000 hours of experience, with a maximum of 1500 hours per year.
- Vehicle Damage Assessment Branch: Requires 3500 hours, with a maximum of 1750 hours per year.
- The Economic Establishments Evaluation Branch requires 2000 hours, with a maximum of 1000 hours per year.
- Machinery and Equipment Evaluation Branch: Requires 2000 hours, with a maximum of 1000 hours per year.
- Precious Metals and Gemstones Branch: Requires 2500 hours, with a maximum of 1250 hours per year.
Strict reporting standards and diverse expertise
The policy went beyond simply specifying working hours; it focused on the quality of professional practice. Members were required to document their participation in preparing various appraisal reports covering internationally recognized valuation methods (income, market, and cost). For example, the real estate branch was required to prepare a minimum of 30 reports covering residential and commercial assets, while the vehicle damage branch was required to complete 1,000 reports covering damage of varying severity.
Documentation and practical training mechanisms
The authority emphasized the necessity of documenting experience through the dedicated online portal, stressing that any experience older than five years prior to the application date will not be accepted. The policy also allows for the inclusion of practical training hours within the experience count, up to a maximum of three months, provided that the training is structured and supervised by a certified assessor to ensure proper knowledge transfer.
Expected economic impact
This rigorous regulation is expected to enhance the quality of valuation outputs in the Kingdom, thereby boosting confidence among both local and international investors. The presence of experienced and certified appraisers reduces the financial risks associated with asset valuation and supports the stability of the real estate market and the economy in general, reflecting the maturity of the legislative environment governing the valuation profession in Saudi Arabia.
