Launch of Arab League-backed Appraisal Foundation

Senior committee members attending today's first day of the Arab Conference for Real Estate Development and Construction approved plans initiated by Dubai's Real Estate Regulatory Agency (RERA) to establish the Arab Appraisal Foundation (AAF), which will spearhead valuation reform in the Arab nations.

Backed by the Arab League of 22 states and with input from the world's most influential real estate professional orgnisations, the Foundation has solid grounds to be considered the Arab equivalent of influential international institutions such as the US Congress-approved Appraisal Foundation and the UK's Royal Institution of Chartered Surveyors (RICS). With the World Association of Valuation Organizations and their equivalents in Europe and Singapore, these organisations provided the crucial input in defining the groundbreaking AAF.

RERA and the Appraisal Foundation were in fact the key driving forces behind the Foundation. Sultan Bin Butti Bin Mejrin, Director General of the Land Department, RERA's parent organisation, said: 'The Arab World's commitment to cooperation and to integrating standards and practices can only benefit the real estate sector as a whole.

'The Arab Appraisal Foundation can take valuations standards-setting to the highest professional level and by doing so underpin the integrity of real estate markets, further opening these up to international investment. The launch of the AAF is a genuine milestone in the integration of Arab national real estate markets and international capital markets, a regional trend pioneered by Dubai.'

Today's summit session in the Dubai Chamber of Commerce agreed the Foundation's statutes, structure and key personnel. The blueprint submitted and approved will effectively shape the way the AAF operates and the constituent councils whose voices it will represent.

From today the Foundation is empowered to develop and set the professional standards for real estate practitioners and encourage integration and the spread of common practices across the regional sector. Its mandate, though geared to the region, will be broadly similar in scope and responsibilities to that of its US equivalent, the Appraisal Foundation.

Marwan Bin Ghulaiti, RERA's CEO, said: 'The new Foundation is crucial to the future of the regional property sector. This is a rapidly maturing market and the regulatory framework, administrative infrastructure and standards and practices have to show a similar level of development.

'Markets stand and fall on their credibility and integrity. True professional standards are the only way to ensure markets continue to be credible and appeal to investors.'

The Second Arab Real Estate and Urban Development Conference - The Global Economic Crisis and its Impact on Real Estate in the Arab World, A Blueprint for the Creation of an Arab Appraisal Foundation - is being held in partnership with RERA and the USA's Appraisal Foundation. It is being hosted by Dubai Chamber of Commerce and Industry and will be held in the Dubai Chamber from, October 19 to 21.

Delegates from the Arab League affiliated countries and a range of international professional organisations face an intensive three-days at summit venue the Chamber of Commerce and Industry. The packed agenda will cover subjects as varied as the implications of the global credit squeeze for real estate issues such as prices, market operations, regulation and economic management.

The meeting, perhaps the most significant event for the future of the regional real estate sector, has been organized by the Arab League-sponsored Arab Administrative Development Organisation. It has brought together government officials, regulators, real estate professionals and investors to coordinate and approve the initiatives which will shape the future development and performance of the Arab world's real estate sector.

One of the main focuses of the summit will be to decide on possible remedies for the changes that have affected the real estate market during the past 12 months and to assess future short and long term prospects. Specific proposals are expected to formalize the interaction and communication between investors, developers, key organizations and government bodies and the possible input at the strategic level from Arab world policy-setters.

Proposals up for approval are also expected to include new forms of partnerships between Arab League states. Mahmoud El Burai, RERA's Director of Real Estate Sector Development, said:

"It is clear that the Arab world's real estate sector is positioned to recover quickly. This is the message that emerged from the experts and economic forecasters at today's meeting."