Realty firms told to submit audited 2011 fiscals by Jan 31

Dubai's Real Estate Regulatory Agency (Rera) has set January 31, 2012, as a deadline for submission of financial reports for all real estate companies and account trustees for fiscal period ending December 31, 2011. 

The agency, the regulatory arm of the Dubai Land Department (DLD) has accredited 18 auditing firms to conduct financial auditing of real estate projects registered with it. The list of the firms is available on (https://www.dubailand.gov.ae/English/Tanzeem/Developers/AuditorsApprovedList.aspx). 

The move is part to boost the adoption of good governance measures for the real estate sector and enhance transparency, thus strengthening investors’ confidence in the real estate sector. 

Khalid Obaid Al Mutaiwei, Senior Director of the Real Estate Development Trust Account Department at Rera said: “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.” 

“Auditing will significantly facilitate the work of project trustees by preparing solid financial reports on real estate projects sold on the map,” added to Al Mutaiwei. 

A senior executive of an accredited auditing firm told Emirates 24.7: “There are more than 350 to 400 auditing firms… the move by Rera will bring in standardization, credibility and authenticity to the books.” 

He believes that most of the companies are auditing their books and will be able to meet the deadline set by the agency. 

Rera has not disclosed what penalties will be imposed on companies that miss the deadline. DLD did not respond to questions sent by this website.

Highlighting the importance of financial auditing as a certified professional monitoring tool, Issa Saeed Al Mansouri, Head of the Trust Accounts Section at RERA's Trust Account Department said: “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 catalyzing development and growth of Dubai.” 

In October, every developer - master developer or sub developer – in Dubai will have to follow the code for corporate governance from 2013, which will make it mandatory for companies to disclose recourse and alternatives available for prospective investors in case of a delay in completion and handover of their property. The department is also working on a real estate investor protection law and has recently signed an agreement with a local consultant to review the law.

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