Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), highlighted the Authority’s ongoing efforts to digitize real estate appraisal by developing electronic applications to assist appraisers in various regions. These applications will include all the necessary details for issuing appraisal reports and will lay the foundation for creating real estate indicators for all areas.
Farid made this announcement during his speech at the Second International Conference of the Egyptian Association of Real Estate Appraisal Experts. He emphasized the vital role of real estate appraisal in determining asset values and its broader impact on the national economy. He stressed the importance of collaborative efforts to improve the skills of real estate appraisal professionals moving forward.
Farid underscored that real estate appraisal plays a key role in maximizing asset values and contributing to the national economy. In response, the FRA has worked on developing accounting standards to ensure accurate asset valuation disclosures. These include incorporating a revaluation model for fixed and intangible assets, as well as a fair value model for real estate investments. These measures aim to reflect the true value of assets in companies’ financial statements and include adjustments to Egyptian accounting standards to account for the effects of exchange rate fluctuations by reclassifying the impacts of currency differences.
He explained that the updated Egyptian accounting standards enable companies to present their financial positions and results more accurately, supporting sound financial and investment decision-making. Recent developments have included a comprehensive overhaul of accounting standards, transitioning from book value to fair value for asset evaluation, real estate investments, and equity.
Farid described these reforms as essential foundational steps towards further progress, supporting the Egyptian government’s efforts to foster growth and prosperity for the nation. He also invited the Egyptian Association of Real Estate Appraisal Experts to propose a unified standard for measuring real estate unit areas, based on international valuation standards.
He emphasized the importance of harmonizing efforts to ensure the quality of real estate appraisal reports, uphold professional conduct, and maintain market efficiency. Farid also noted that the FRA has introduced numerous decisions and regulations to promote growth in the sector through non-banking financial solutions and services. This includes the development of financial valuation standards for enterprises, particularly start-ups, in line with their business models.
The FRA’s vision focuses on achieving financial inclusion and digital transformation, with a primary goal of ensuring financial stability for non-banking financial institutions and markets, while protecting the rights of stakeholders.
Farid pointed out the pivotal role of real estate appraisers in expanding real estate investment funds, increasing their number and size, and enhancing returns from mortgage financing activities. These efforts are being supported through the development of new rules and procedures governing the sector.
He also stressed the priority of training and continuous education to nurture new generations of skilled professionals, ensuring the sustainability of these reforms. This will be facilitated through various training programs supported by the FRA’s Financial Services Institute.
In a related event, Farid was honoured for his significant contributions to the development of the non-banking financial sector, particularly in real estate financing and appraisal.
