Azerbaijan's valuation sector at a critical juncture for reform

Azerbaijan is currently at a stage where the valuation sector is in urgent need of serious reforms. This was stated by Vugar Oruc, Chairman of the Society of Appraisers of Azerbaijan. According to him, one of the main issues in the sector is the shortage of qualified professionals.

“President Ilham Aliyev has repeatedly emphasized that all economic and financial operations in the country, including valuation activities, must be carried out based on the principles of transparency and accountability. However, much work remains to be done in this direction,” Oruc said.

Another major issue facing the valuation sector is the incomplete legislative framework. Despite the adoption of the new Law “On Valuation Activities in the Republic of Azerbaijan” in 2023, there is still a need to develop additional legal and regulatory documents.

Vugar Oruc also noted that the national valuation standards currently in use in Azerbaijan were adopted approximately 15 years ago and no longer align with current realities:
"These standards either need to be updated or new national standards should be developed in accordance with international valuation standards."

He stressed the importance of learning from international experience and organizing professional exchanges. The low quality of valuation reports and instances of price dumping also negatively affect the sector's overall effectiveness.

“Sometimes companies offering services at very low prices are selected, but this often comes at the expense of quality. Therefore, there is a need to define quality benchmarks for valuation services in the country,” he added.

Touching on the importance of developing a methodology adapted to local conditions, Oruc emphasized the need to strengthen collaboration between higher education institutions and valuation professionals.

He also pointed out several technical and legal issues that arise in the practical activities of valuers. For instance, the valuation profession still lacks a specific activity code within the country’s tax authorities. Furthermore, the absence of specialized faculties in universities for valuation-related education creates serious challenges in training professionals.

“We are forced to select valuers from specialists in other fields,” he said, highlighting the scope of the problem.

According to Vugar Oruc, structured reforms and sustainable development in the valuation field require systematic measures in both legislation and the areas of education and professional training.