How new valuation rules will increase investments in Kazakhstan

Kazakhstan is preparing important amendments in the field of evaluation activities.

The Ministry of Finance has initiated amendments to the legislation on valuation activities, which should improve the quality of valuation services, open up new opportunities for Kazakhstani appraisers in the EAEU space, expand access to services for citizens and businesses, stimulating economic growth and investment. A representative of the Ministry of Finance of the Republic of Kazakhstan spoke about why the reform is needed, what innovations await the market and how they will affect the investment climate of the country.

- Why should we make amendments to the valuation activities legislation?

- In 2020, the Decision of the Supreme Eurasian Economic Council (hereinafter referred to as the Council) came into force "On amendments to the list of sectors (subsectors) of services in which the single market of services operates within the framework of the Eurasian Economic Union. In this Decision, the single market for property valuation services began functioning after amendments were made to the legislation of the EAEU Member States in accordance with General Approaches to the Conditions for carrying out valuation activities within the framework of the single market for services.

Today, property valuation plays an important role in purchase and sale transactions, loans, investments, and lawsuits. Therefore, it is important that the procedures are as transparent, predictable as possible and protect the interests of both businesses and citizens.

 In addition, amendments are being made to the Law regarding the provision of property valuation services within the EAEU by appraisers,both Kazakhstani and appraisers from other EAEU member states.

Thus, appraisers of one EAEU member state will be able to carry out their activities on the territory of other EAEU member states without barriers, exemptions, restrictions, additional requirements and conditions.

This means that the assessment carried out in our country will be recognized in other countries of the union, without the need for repeated procedures. Such a step will greatly simplify cross-border cooperation, allow businesses to save money on valuation, make the market more attractive to investors and create conditions for the free movement of capital. As a result, all market participants benefit: from small businesses to large international companies. 

- What are your main goals when making amendments to the law on valuation activities?

-The main task is to make the system more modern and understandable. Kazakhstan harmoniously fits into the EAEU single market of services. The amendments to the Law will allow appraisers to carry out their activities on the territory of the EAEU countries.

- How will it work in practice?

 - Amendments to the Law on Valuation Activities will simplify the life of both businesses and individuals. Imagine the situation: a Kazakhstani appraiser has assessed a real estate object for collateral or sale. Now this assessment will be automatically recognized in other EAEU countries. For example, in Armenia or Russia. The new order removes these barriers: one score means one result for the entire union.This not only reduces costs, but also makes business processes faster and more predictable.

Internally, the law will also lead to an improvement in the quality of the assessments themselves. Strengthening the qualification requirements of specialists will increase the level of confidence in the results of evaluation activities. Companies and banks will be able to rely on more accurate and objective data when making decisions about lending, investments or insurance. This creates additional protection for investors and clients, as well as strengthens Kazakhstan's position as a country with a transparent and modern regulatory system.

- How will the amendments to the law affect the domestic market?

Each chamber of appraisers will implement a system of internships and regular training. This will allow young professionals to adapt faster to market requirements, while experienced ones will constantly update their knowledge in accordance with international standards.

In addition, the proposed amendments also mean an improvement in the quality of services. As a result, this will create the basis for a more stable real estate, lending and investment market.

 - How do the appraisers themselves feel about the amendments?

Generally positive. Amendments in  implementation of evaluation activities within the EAEU will open up new opportunities for Kazakhstani appraisers, expand access to services for citizens and businesses, stimulating economic growth and investment.

 

 - How will these amendments affect investments in Kazakhstan?

-Transparency, predictability and trust in the asset valuation system are important for any investor, because it is on this that the accuracy of calculations, the validity of transactions and the minimization of risks depend. Amendments in the legislation on evaluation activities will strengthen the image of Kazakhstan as a reliable jurisdiction where laws work transparently, specialists are competent, and the evaluation system meets international requirements. All this increases confidence in the economy and opens up new opportunities for attracting long-term capital.

The adoption of the draft law on the introduction of property valuation services will open up new opportunities for Kazakhstani appraisers, expand access to services for citizens and businesses, stimulating economic growth and investment.

Also, the draft Law provides for the improvement of existing standards, the elimination of excessive requirements and contradictions, which will lead to an improvement in the legislation of the Republic of Kazakhstan on valuation activities and more effective regulation of the industry.