Feasibility study In Saudi Arabia
Feasibility study In Saudi Arabia are very important steps. Which cannot discard before a project starts. Without them, a successful project becomes meaningless. No project has no clear, specific plan. So, in this article we offer you the price of a feasibility study in Saudi Arabia. Thus, the most important offices that provide these services.
Approved Feasibility Studies Offices
These offices are the ones involved in the preparation of the economic and financial survey and the quality of the project.
Business Development PROTAX Feasibility Study Office:
Long experience working feasibility studies for different fields, a specialized cadre capable of well analyzing the project, knowing the amount of competition.
and who the potential competitors are for the project, as well as studying the quintet of competitors. the best partner for your successful project.
Definition of Feasibility study In Saudi Arabia
A feasibility study is a set of scientific studies that are carefully prepared to determine the validity or evaluation of an investment project in several respects
- Legal
- marketing
- technical
- Financing
- Economic
- Social
To identify the expected returns and costs in the light of the intended objectives during the project’s life expectancy.
To determine the viability of investment in a particular project and its preference for other investment projects.
Importance of The approved feasibility studies
The feasibility study is of great importance. Thus, to the individual, the project and the community.
It is not a project with a living understanding but extends to life in its many aspects.
This is a practical tool for judging whether an investment project. It is valid before and during implementation.
But most often before implementation. Thereby preventing the investor from slipping into risk and bearing losses.
It is a scientific tool to trade off investment projects and choose the best of them. Combining private profitability for the investor and public profitability for society.
It is one of the most important scientific tools used by the decision-makers in dealing with the economic problem.
Whether at the project level or at the national level.
Gives an investor a prior view of the expected economic, political, social, legal and environmental changes during the project’s life.
Expectancy and their impact on the project’s revenues and costs. Hence the future profitability of the project.
The feasibility study, with its diverse information and many experiences in legal, marketing, technical, financial, economic, social, environmental and legal aspects.
That makes investment decision-making an integrated process, with its potential to affect project performance.
Which makes the calculation of expected risks more realistic and less uncertain. To study the feasibility of its scientific tools to prevent incalculable risk, unknown methods and results.
Which would serve the purposes of sharia law in preventing harm.
What does the best feasibility study firms offer For clients?
Economic and financial consulting.
Economic feasibility studies in all their sections (marketing, technical and financial).
Business plans.
Marketing plans.
What do they offer in the feasibility study?
The economic feasibility studies are presented in four sections.
Section I is a preliminary study of the project to be submitted. The marketing study, which determines the size of the market.
as well as the volume of demand for the product or service provided by the project, is presented in section II.
Section III deals with the technical study, which identifies the technical components of the project.
as well as the technical and municipal requirements for the establishment of the project.
as well as an explanation of the productive or operational process of the product or service.
The financial study is presented in section IV of the Economic feasibility Study, in which the investment cost of the project is determined, the return on investment is determined.
the internal return of the project is determined, and income and the recovery period are determined.
How much does a Feasibility study In Saudi Arabia cost?
There is no fixed price for feasibility studies.
The fame of this offices, the success of the events he oversaw, and he presented feasibility studies.
The quality of the project itself and its estimated budget. For example, financing a small project with an onion of 50,000 SAR. Would a simplified feasibility study at no significant cost.
Which is different from a large project with an investment volume of million Saudi SAR.
The experience of the project supervisor, his ability to address all aspects of the project. The ability to identify possible obstacles to the success of the project.
There are offices that offer the cheapest feasibility study. But that study can be not good enough. So of course, the effort in the project has to be commensurate with the price of the study.
Other offices offer a prototype pre-model feasibility study. Which they do to give to the client. If the model approved, the office started, and the plan followed.
The Importance of Feasibility Studying
The aim of the feasibility study is to rationalize the investment decision that an economic project must be based on economic and technical competence.
In other words, the feasibility of establishing the proposed project before its practical implementation.
A rational investment decision must be preceded by studies showing that there is an adequate market for project production and development.
As well as the availability of the necessary raw materials, labour and infrastructure.
as well as adequate and timely sources of financing.
Most importantly, this project will eventually generate a return commensurate with the nature of the project and the degree of risk involved from an individual, or national, point of view.
The relevance of the feasibility study can summarize in the following points:
To determine the relative preference of investment opportunities from the point of view of economic development. Helping economic policy to establish appropriate policies and incentives to encourage the private sector to install such opportunities.
The Feasibility study In Saudi Arabia contributes to the optimal allocation of economic resources at the national level.
To offer a successful business in Saudi Arabia.
It’s a practical way to help capitalists make the right decision.
As a practical means of persuading local, regional and international financial centers and bodies.
That is to provide appropriate means of financing and under appropriate conditions.
The economic Feasibility study In Saudi Arabia and project evaluation is a practical and scientific tool for evaluating proposed projects.
The subject of the study according to aim financial and economic criteria is as far away as possible from
personal and random assessments. A practical means of helping an investment decision-taker to trade off investment opportunities to maximize the investor’s aim.
Preparation of a feasibility study
The economic Feasibility study In Saudi Arabia for a project consists of:
- Marketing feasibility study.
- Technical feasibility study.
- Financial feasibility study.
- Social feasibility study.
- Environmental feasibility study.
- Project sensitivity analysis.
- Financial analysis in relation to the project.
- Loan repayment methods.
- Writing the feasibility study report.
Here’s a detailed explanation of the format and content of the study, where I have drafted it in a concise and simplified way.
The economic feasibility of a project is one of the most important steps for the success of such projects, since proper project planning ensures the success and effectiveness of such projects.
as well as the expected good material (profit) from such projects.
So, before any economic project is started, it has to be economically viable.
Economic feasibility is the process of collecting information on a proposed project.
and then analyzing it to determine the feasibility of implementation, risk reduction and profitability of the project.
It is therefore necessary to know the success or loss of this project compared to the local market and its needs. A study of the local market in terms of its needs and requirements
Should be undertaken by examining the following elements:
- Market study.
- Art study.
- Financial study.
In order to make any economic use of the employer, the following points and steps shall be taken:
The owners of the project shall know the following:
- What experience and skills do they have that serve the project?
- What are the personal motives that guarantee the success of the project?
Participants must know their skills (communication, design, supervision, organization, mathematics, etc.). The qualities of cooperation, decency, honesty, enthusiasm, punctuality, diligence, must know. Knowledge of the past experience and scientific level.
Market study:
(Characteristics of goods, employer’s market share, how to sell goods so that they have market share).
Technical study of the project:
- The fixed assets required by the project.
- The requirements for the production of the commodity.
- The stages of the production of the commodity.
Knowledge of the planned location of the project.
and the provision of water, electricity, transportation, machinery and equipment, workers’ wages, production and so forth.
Financial study of the project:
- Is the idea of a project profitable or not?
- What’s the cost of the project?
- Where do we get the money?
The total cost of the project, the monthly and gross profit, and the financial tests to measure feasibility must be determined.
you can also read SECRETS TO FEASIBILITY STUDY OF A COMMERCIAL PROJECT
What’s the feasibility study for the project?
It’s a method used to determine whether there’s the potential to carry out the project and market its production and whether it’s profitable.
To answer the question… Project owners undertake the project’s economic feasibility study by collecting. Debating and analyzing information based on six sequential and sequential steps.
Step one: It is necessary to explore, think and discuss the idea of an appropriate project.That seems to be useful through analysis and verification. At which point any project must study and its economic feasibility made.
Step two: know whether people are going to buy the goods or not. The second step is to make sure that the idea of the project at hand is true and relevant. Here we need to focus and look and learn about the needs and demands of potential or real customers.
As well as whether people are going to buy what we plan to sell in the potential market.
Step three: Decide how to do a feasibility study for a small project. Where you need to make a thoughtful decision about how to run a project and study the nature of the project. How to operate the project.
Step four: The cost of the project will calculate and take into account in the preparation and operation of the feasibility study.
The assignment will divide into two types:
- Fixed costs: Like (salaries, store rentals, workers’ insurance, consumption).
- Calif changed: Such as (raw materials, wages, maintenance, transport, electricity expenses, water and fuels).
Step five: An estimate of the project’s sales income estimates the amount that can sell through the project over a certain period of time and its price upon sale.
Step six: Decide whether the idea of a project is good, and here
- We have to decide on the idea of a project.
- The scale of our profits from the project.
- How to calculate our profits and cash flow.
- What other important benefits.
- Then decide whether the project’s idea is good or not.
(If the idea is good, we start with the preparation and work of the action plan. And if it’s not good, we get the first idea and we look for the idea of a more viable and successful project.
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