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EFSA Welcomes a Decree by the Cabinet of Ministers that obliges the Administrative Body to abide by the Egyptian Financial Valuation Standards

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• The Cabinet of Ministers approves the adoption of the Egyptian Financial Valuation Standards and the Egyptian real estate evaluation standards.
• Sherif Samy: Applying the Egyptian Financial Valuation Standards as a binding approach will increase transparency and integrity and promote investment climate
• Sherif Samy: The abidance of the administrative body by the Egyptian Financial Valuation Standards enhances the credibility of valuations and reduces corruption
• Financial Valuation Standards and the Egyptian real estate evaluation standards were issued after extensive consultation with associations and experts
• Sherif Samy: We will hold workshops for representatives of ministries and Authorities on Financial Valuation Standards and real estate evaluation standards

Sherif Samy- EFSA’s Chairman welcomed a decree by the Cabinet of Ministers that obliges the Administrative Body to abide by the Egyptian Financial Valuation Standards in order to enhance the objectivity of valuation, reduce corruption and adopt one standard reference to be used upon valuation.

In a statement to the media after attending a meeting of the Cabinet of Ministers, EFSA’s Chairman noted that for the first time, EFSA has issued the Egyptian real estate evaluation standards which are committed by mortgage finance companies and investment funds, that is in light of the Laws being applied by EFSA.  Also, it  issued the first Egyptian real estate valuation standards which aim at protecting  investors, financial institutions and market’s dealers and increasing  their confidence in securities valuation  for purposes of  offering , acquisition and capital increase , investment funds’ contributions  and other investment and financing decisions.

He pointed out that the Cabinet of Ministers considered that the interest requires that the ministries, agencies, local administration units and public companies shall adopt both the financial valuation standards and the real estate evaluation standards upon selling, buying or real estate leasing as well as contributing or bailing out of projects.

He stressed that the standards are reference or binding approach for all so that the results of the valuation, whether real estate or financial will be consistent, objective and comparable.  He added that it is an important addition to improve transparency, enhance investment climate, promote integrity, and reduce conflicts.

He pointed out that the Egyptian real estate evaluation standards represent a qualitative leap in the evaluation process and it will be applied by all real estate appraisal experts.  He added that Egypt now has for the first time binding standards for real estate evaluation that will confirm the objectivity of the valuation and enhance its credibility and trust. Also, it affects various aspects of financial activity, in banking, including financing, real estate guarantees, real estate investment funds, mortgage finance companies, financial leasing in addition to insurance activity through Property insurance and all that is related to in-kind contributions.

Sherif Samy – EFSA’s Chairman revealed that the Egyptian Financial valuation Standards is considered as a guide for the best global practices. It was issued after being presented for social dialogue and consultations with associations operating in capital market, investment and financial analysis.  He added that EFSA published the draft law on its Web site to be available for a large number of  specialists to give their suggestions and comments. In addition, EFSA’s  Chairman pointed out that the standards included “scope of application”, ” The Code of Ethics and Standards of Professional Conduct  “, and ”  Professional Competence  Requirements” as well as ” scope of work” and ” implementation of the valuation process” and ” reasonableness of assumptions” in addition to “valuation  methods ” preparation of  valuation report “.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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