Dubai's RERA approves more firms for audit checks

Dubai's real estate regulator has added a further four companies to its approved list to carry out audits on property projects in the emirate. The Real Estate Regulatory Authority (RERA), the regulatory arm of the Dubai Land Department, said it has now accredited 22 auditing firms to conduct financial auditing of projects. The step is part of RERA's strategy to enhance transparency in the real estate sector, thus strengthening investor confidence, RERA said in a statement. 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." RERA has inked cooperation agreements with the 22 approved audit firms to examine real estate projects exclusively registered with RERA. "Auditing will significantly facilitate the work of project trustees by preparing solid financial reports on real estate projects sold on the map," added Al Mutaiwei. Last month, RERA said it had initially approved  18 auditing firms to conduct financial checks. Dubai said in October that the world's first governance charter for real estate developers, aimed at improving transparency in the sector, would be implemented by January 2013. The Dubai Land Department (DLD) said it had launched the draft document with the blessing of ruler Sheikh Mohammed bin Rashid Al Maktoum. 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 percent from peak levels.