The United Arab Emirates (UAE) is moving forward with plans to establish the world’s first real estate governance charter to better insure transparency in real estate development, and has initiated the move by tasking 18 auditors to review current projects in the emirate. The new program, which is expected to fully launch in 2013, will keep Dubai’s Real Estate Regulatory Authority informed on all real estate projects and companies. UAE policymakers anticipate the move will lend more credence to the emirate’s business dealings, thereby attracting more investment. For more on this continue reading the following article from Property Wire.
The Real Estate Regulatory Authority in Dubai has accredited 18 auditing firms to conduct financial check on property projects in the emirate.
RERA, the regulatory arm of the Land Department, said the move was part of a strategy to boost good governance measures in the real estate sector and enhance transparency.
‘We perceive this move as a milestone in implementing the standards of financial auditing to the real estate sector in accordance with best practices in auditing real estate companies and projects,’ said Khalid Obaid Al Mutaiwei, senior director of the Real Estate Development Trust Account Department at RERA.
The leading local and international firms, who have not yet been named publicly, will examine real estate projects exclusively registered with RERA and produce solid financial reports on real estate projects sold.
They will be responsible for examining and assessing the financial standing of companies looking to launch real estate projects in Dubai.
‘This system will keep RERA fully informed about real estate companies and projects. Auditing and evaluation of approved real estate projects in Dubai enhances trust and transparency in the real estate sector in addition to catalysing development and growth of Dubai,’ Al Mansouri added.
Dubai said last month that the world's first governance charter for real estate developers, aimed at improving transparency in the sector, would be implemented by January 2013.
Over the next three months, real estate companies will be educated about what the charter means, prior to putting the final touches on the final draft.
The charter proposal is part of nine initiatives launched by the Department to spur a recovery in the emirate's battered property market where prices have slumped more than 50% from peak levels in 2008.
This article was republished with permission from Property Wire.