What Are IVS Standards, and Why Do They Matter to Every Investor?

When requesting a valuation report for a real estate or industrial asset, you may come across a reference to international standards such as IVS or RICS. These standards are not a formality — they are the real guarantee of a report's objectivity and credibility before banks, courts, and investors.

What Are IVS Standards?

The International Valuation Standards (IVS) are a set of principles and methodologies established by the International Valuation Standards Council (IVSC), used by accredited valuers in more than 130 countries worldwide, including Saudi Arabia, where the Saudi Authority for Accredited Valuers has adopted them as a reference framework.

Why Do These Standards Matter to an Investor or Owner?

• Neutrality: International standards require separating the valuer's interest from the valuation outcome, preventing bias toward any party.
• Comparability: A report based on IVS can be relied upon by any bank or foreign investor without the need for re-valuation.
• Transparency: The standards require the valuer to disclose the methodology and assumptions used in the report.
• Legal acceptance: Reports compliant with these standards are accepted before courts and regulatory bodies in the Kingdom.

RICS Standards: A Professional Complement to International Standards

Alongside IVS, many professional valuers also follow the standards of the Royal Institution of Chartered Surveyors (RICS), which focus on professional conduct and practice ethics in addition to the technical aspects of valuation. Combining both frameworks gives the report an additional layer of trust, especially in high-value transactions.

How to Verify a Valuation Company's Compliance with These Standards

Ask the valuation company to clarify the methodology used in the report, and make sure the international standard is explicitly stated, and that the valuer carrying out the work is licensed by the Saudi Authority for Accredited Valuers. Serious companies do not hesitate to share these details, as it is part of their professional commitment.