FEASIBILITY STUDIES

AlShall strength in carrying out reliable professional feasibility studies stems from its insight and understanding of the local and regional economies’ prospects. Over the past 20 years, AlShall has carried out numerous feasibility studies within diverse sectors and industries, so that a considerable regional cross sector cumulative expertise and valuable data bank was formed.


The industries that AlShall was involved in carrying out feasibility studies for the public and private sectors include but are not limited to:


One of AlShall’s unique capabilities is assembling local or international teams, as the need requires, of relevant expertise in order that studies be done in an expert fashion and produced in a credible, comprehensive and implemental way.

Feasibility Studies Examples

Project Example – Feasibility Study

 

  • Assignment Establishing an Islamic Bank – Cham Bank, Damascus, Syria

    Client Name Kuwaiti Real Estate Holding (formerly known as Kuwait National Real Estate Services Company).

    Client’s Activities Private sector company with real estate activities in Kuwait and the MENA region.

    Project Size USD 175,000,000 (KD 50,000,000)

    Assignment Date & Duration 2004, 5 months.

    Main Area of Focus Carrying out a financial feasibility, developing economic and market studies, and making a final submission of the BOT proposal to the Municipality of Kuwait.

    Services Provided Conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. AlShall built financial models for each entity to incorporate all these elements in pro-forma income statements, balance sheets and cash flows, supported by appropriate scenarios and sensitivity analysis.

    Outcome Consultancy mandate fully executed and BOT competition won by the client.

  • Assignment Establishing an Islamic Bank – Cham Bank, Damascus, Syria

    Client Name Promoters of Cham Bank

    Client’s Activities Islamic commercial, investment and retail operations

    Project Size USD 105,000,000 (KD 30,000,000)

    Assignment Date & Duration 2005, 20 months.

    Main Area of Focus AlShall worked with promoters to envision the concept and take it from idea to reality by introducing the Islamic banking concept to the regulatory authorities in Syria, undertaking the feasibility, preparing the entry strategy, identifying risks, securing the required licenses, setting the legal and financial structure of the new entity, and placing the entire required equity capital through a private placement.

    Services Provided AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. As part of the feasibility, AlShall developed the bank’s entry strategy to the Syrian market in terms of size of capital to be deployed, customer segments to be targeted, value proposition and operating model. Finally, AlShall raised the required equity capital through a private placement. Two third of the new bank’s capital was allocated to strategic investors and non-strategic investors while the remaining third was allocated to Syrian small investors via an oversubscribed public placement.

    Outcome The capital issue was successfully closed and the bank became operational

  • Assignment Establishing a private sector oil and gas company – AlDorra Petroleum Services K.S.C.C.

    Client Name Promoters of AlDorra Petroleum Services Company

    Client’s Activities Kuwait-based investment holding with operating subsidiaries within the oil services industry across the MENA region

    Project Size USD 42,000,000 (KD 12,000,000)

    Assignment Date & Duration 2006, 13 months

    Main Area of Focus AlShall worked with promoters to envision the corporate concept and take the concept from idea to reality. Primary tasks included setting the strategy, identifying risks, conducting a feasibility study, acquiring the licenses, preparing the legal and financial structure, and placing 100% of the required equity capital.

    Services Provided AlShall conducted a comprehensive feasibility study including all sub-components such as market research, industry trends, supply and demand quantification, competitors, customers, legal framework, identification and quantification of revenue streams, operating expenses, capital expenditures, capital structure, required rates of return and associated risks. Finally, AlShall raised the required equity capital through a private placement with both strategic and non strategic investors. At a second stage, AlShall successfully negotiated and acquired, on behalf of promoters and the company, four oil services companies that formed the nucleus of the new company.

    Outcome The capital was successfully raised and the company established.