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5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

5. Financial Transparency

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services

 

5.1 Market Stability

Core Question:  Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? Yes – Strong.

5.1.1 Financial Reporting

What is the strength of the country’s auditing and reporting standards? Strong – 55th out of 142; Score 4.85 out of 7, Strong.

5.1.2 Financial Services

Does the financial sector provide a wide variety of financial services to businesses? Strong – 68th out of 142; Score 4.56 out of 7

Source: The Global Competitiveness Report 2011-2012, World Economic Forum
http://www.weforum.org/issues/global-competitiveness /

5.1.3 Insolvency Process

Weak – Ranking – 113rd out of 183 Trend is up

5.1.3.1 What is the average time to complete bankruptcy proceedings? 3 years

5.1.3.2 What is the cost of bankruptcy proceedings as a percentage of the estate? 20%

5.1.3.3  What is the recovery rate of bankruptcy proceedings?  27.2 cents on the dollar

Source: Doing Business 2011 – Closing a Business
http://www.doingbusiness.org/data/exploreeconomies/Jordan

 

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5.2 Independent Asset Valuers

Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? Unknown

Survey Questions

5.2.1 Standards

SQ 17  How easy is it to find a valuer who implements International Valuation Standards? Unknown

5.2.2 Training

SQ 18  What is the level of training of valuers? Unknown

5.2.3 Ethics

SQ 19  Are opinions offered by valuers free of influence from parties to the transaction? Unknown

 

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5.3 Data Standards

Core Question: Is accurate property information available electronically in formats that are consistent with international standards? Yes – Strong, rapid improvements have occurred over the last decades.

Survey Questions

5.3.1 Sales & Operating Data

SQ 20  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Weak.

Source: http://pdf.usaid.gov/pdf_docs/PA00JX4S.pdf

SQ 21  Do resources exist for obtaining building income and expense estimates? Unknown

5.3.2 Interchange Formats

SQ 22  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? Yes – Strong

Source: http://www.abdoun.com.jo/Residential.aspx?cat=res&lang=en

5.3.3 Technical Standards

SQ 23  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? No, weak.

Source: http://pdf.usaid.gov/pdf_docs/PA00JX4S.pdf

 

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In-Country Assessment

Valuation Profession

FQ 19 How many independent valuers exist in the market? Can small businesses obtain fair valuations for property they want to buy or sell?
Not available yet

FQ20 What are the valuation standards and do they conform to international and regional standards? Not available yet
FQ21 What valuation methods and techniques are used in the market? Not available yet

Data Availability

FQ22 How available is information for commercial properties that are for sale or that have been sold? Not available yet