Do you think the field of valuation in Saudi Arabia is limited to real estate valuation? Many people think that valuation is just about figuring out the market value of land or a house, but it’s a specialised field with several sectors covering important economic, industrial, and commercial areas, each with its own standards and tools.

In this article, we will learn about the valuation sectors approved by the Saudi Authority of Accredited Valuers and what distinguishes each branch from the other. 

What is the valuation profession?

The valuation can be defined as determining the fair value of real estate, economic facilities, equipment, and property of various types for a specific purpose. The valuation profession began in the Kingdom of Saudi Arabia as an unregulated practice that relied mostly on personal judgement and market experience, without any official body to regulate the sector, especially given the urgent need for clear standards to govern valuation processes, particularly in light of the economic and urban growth witnessed by the Kingdom.

 In 2012, a royal decree was issued to establish the Saudi Authority for Accredited Valuers to regulate and develop the valuation profession in all its branches under the supervision of the Ministry of Finance. The most important objectives of the Authority after its establishment are: 

• To regulate the valuation profession by setting the necessary standards for the practice of valuation.
• Developing the valuation profession by contributing to raising the ethical and professional standards of those working in it.
• To qualify and certify valuers to practise the valuation profession in all valuations sectors by offering accredited training programmes and issuing fellowship certificates and licences to practise the profession. 
• To raise awareness and increase public confidence in the valuation profession, making it one of the important professions.

To achieve this, the authority launched five valuation sectors—real estate, business, machinery and equipment, vehicle damage, and precious metals and gemstones. It also established a training academy to offer accredited programmes and introduced an electronic platform called Taqeem.

In the Kingdom, valuation is a regulated and licensed profession. Only certified appraisers with an official permit from the Saudi Authority of Accredited Valuers are allowed to practise it.

What are the valuation sectors?

As explained earlier, valuation is not limited to real estate; it includes five sectors, namely:

• Real estate valuation: Real estate valuation involves determining the market value of a specific asset at a given time for a particular purpose. An accredited valuer conducts this process by studying and analyzing all relevant property characteristics—such as location, condition, and available facilities—as well as economic factors influencing the real estate market. The valuer also considers all interests, rights, obligations tied to the property’s ownership, including any permanent improvements and associated accessories.

Real estate valuation is based on the three valuation methods: income, cost, and market, in all branches of real estate valuation by an accredited real estate appraiser. 

• Business valuation: This is one of the branches of valuation and includes the valuation of economic facilities of various types according to a specific type of value or for a specific purpose. Such as business facilities and royal interests, whether individual or corporate, and all related obligations and rights. With the valuation of their intangible assets, such as trademarks, intellectual property, patents, and reputation. 

• Machinery and equipment valuation: This is the process of valuing various types of equipment and machinery according to a specific type of value for a specific purpose. Machinery and equipment include all tangible assets, interests, rights, and obligations related to them, whether individually or collectively. They are used in industry, for administrative purposes, transportation, operational assistance, and service provision. 

• Vehicle damage assessment: This involves estimating the cost of repairing a vehicle, regardless of the cause of the damage, such as accidents, flooding, or flash floods. It includes labour costs and spare parts, or estimating the market value of the vehicle before and after the damage. 

• Precious metals and gemstones valuations: This branch is concerned with estimating the value of precious metals and gemstones and everything that is considered to be part of them in accordance with the evidence and standards approved by the Saudi Authority of Accredited Valuers (TAQEEM). 

In conclusion

The valuation sectors organized by the Saudi Authority of Accredited Valuers are the cornerstone of supporting confidence in the real estate market in the Kingdom. They are not limited to real estate valuation, but include economic facilities, machinery and equipment, vehicle damage, and even precious metals and gemstones. 

This diversity of specialisations reflects the importance of having certified valuers who possess the knowledge, experience, and professional standards necessary to ensure fairness and transparency in valuation.

If you are looking for an accredited valuer who can provide you with accurate and reliable service, Aain offers you professional real estate valuer solutions accredited by the Authority, carried out by a team of accredited valuers for all branches of real estate valuation by the highest locally and internationally accredited standards. Whether you are an individual or a company, contact us to assess the true value of your property.