Blog

November 2020

What is feasibility study and how it affects in project management?

What is feasibility study and how it affects in project management?

What is feasibility study and how it affects in project management?

Feasibility study is a formal project document that shows results of the analysis, research and evaluation of a proposed project and determines if this project is technically feasible, cost-effective and profitable.

A feasibility study determines whether the project is likely to succeed in the first place. It is typically conducted before any steps are taken to move forward with a project, including planning. It is one of the—if not the—most important factors in determining whether the project can move forward.

The growth and recognition of project management have changed significantly over the past few years, and these changes are expected to continue and expand. And with the rise of project management comes the need for a feasibility study.

 

The importance of feasibility study in project management can only be understood within the context of the types of feasibility studies and their main focus. There are three types of feasibility studies. These three types are the Market, Technical and Financial Study. Technical feasibility places particular focus on the availability of technology that is needed to achieve the objectives of the project. The key considerations of technical feasibility are whether the technology is obtained locally, the costs of the technology if it is to be imported and how relevant is it to the achievement of project objectives. In a broad sense technical feasibility seeks to determine the availability, costs and technological risks associated with technology that is needed to achieve project objectives. For example technologically intense projects such as mining require a detailed technical feasibility study that will determine technological availability, costs and associated risks particularly to the environment.

 

How feasibility study affects in project management?

  • Improves project teams’ focus
  • Identifies new opportunities
  • Provides valuable information for a “go/no-go” decision
  • Narrows the business alternatives
  • Identifies a valid reason to undertake the project
  • Enhances the success rate by evaluating multiple parameters
  • Aids decision-making on the project
  • Helps to meet the objectives of the business.
  • Helps to meet the expectations of the stakeholders.
  • Delivers the work at the right time.
  • Resolves problems and issues much earlier.
  • Responds to risks on time.
  • Manages constraints such as scope, quality, schedule, costs, resources)

 

 

Investment Opportunities in Egypt

Investment Opportunities in Egypt

Investment Opportunities in Egypt

Egypt’s 2030 vision plans to develop a competitive, balanced and diversified economy. Supporting innovation and knowledge, social justice, economic development and the environment. The sustainable development strategy is achieved through a collaboration system investing in human capital and diversified locations in Egypt to improve Egyptians’ quality of life that is built on transparency and social equality , That makes Investment in Egypt is a real opportunity.

Egypt’s fast-growing, young population of 105 million, diverse and expanding economy and its strategic location linking the Middle East, Europe, Africa and Asia all make it an ideal hub for regional and global investment. As an added incentive, a basket of beneficial trade agreements, including GAFTA and COMESA provide the country with favored access to regional growth markets. As Egypt enters a period of political and economic stability, and a reform-minded government carries out an overhaul of the country’s subsidy system, now is the time to invest in Egypt.

 

Why Egypt:

Egypt is one of the highest population densities and ranked 15 internationally and third in Africa. At January 2015, Egypt’s population reached 88 million according. Meanwhile the estimated number of Egyptian abroad is 8 million according to figures released by the Ministry of Foreign Affairs.

Egypt has emerged as a consumer market of significant importance in the MENA region, as witnessed by the arrival of dozens of global brands and the sharp expansion of retail sales in the past years. This is partly due to the sheer size of Egypt’s population that puts it as the most populated country in Africa and the Middle East, as well as the fact that 50% of Egyptians are between the age 15 and 44. Egypt has access to large key markets through various multilateral and bilateral trade agreements with the USA, European Union, Middle Eastern and African countries; which secure benefits to Egyptian-based producers supplying these markets.

Key global markets in Europe, the Middle East, Africa and the Indian Subcontinent are all readily accessible from Egypt. Closer to the European and North American markets than other major exporters including India, China and the Philippines, Egypt is also located on key international logistics routes.

Egypt benefits from the Suez Canal, which is considered to be the shortest link between the east and the west due to its unique geographic location. Approximately 8% of the world’s maritime shipping passes through the Suez Canal each year.

Truth Economic and Management Consultancy provides a selected Investment opportunities in major Sectors in Egypt.

Offering the shares of free zone companies qualifies the UAE market to be promoted to “advanced”

The report of the “Truth” Economic and Management Consultancy said that the government decision regarding setting up a system that allows the offering and issuance of shares of companies located in the free zones in the UAE comes within the framework of the efforts made by the Ministry of Economy, especially the Securities and Commodities Authority, to create a legislative environment that qualifies local markets. To upgrade to advanced markets.

In a statement singled out by Al-Ru’ya newspaper, Reda Mosallam, Managing partner of the company, stated that it’s also aims to expand the size of the capital and securities markets to include the market values of these companies, which means increasing the market values of countries with the same values.

He pointed out that the benefits of the decision are to expand the base of joint-stock companies, by entering foreign companies registered in the free zones, in front of potential investors, who prefer to invest in the financial markets of the state.

He stressed that the decision will also have its positive effects on opening the state’s markets to companies looking to offer their shares in new markets, instead of the traditional markets that tighten their requirements, which will have positive effects on the state’s markets.

 

He pointed out that the decision to allow foreign companies and establishments in the free zones to offer their shares means an important leap in the promotion of the state’s financial markets and steadily increasing its market value.

He pointed out that the decision would strengthen support for the UAE dirham, and make it reach the level of free currencies that countries and investors buy as a safe haven.

The new federal budget confirms the strength of the UAE economy through facing Corona

The report of the “Truth” Economic and Management Consultancy said that the UAE’s new federal budget figures for the fiscal year 2021 confirm that UAE has survived the “Covid-19” pandemic that prevailed in the world and wreaked havoc and beaten relentlessly in all aspects of life, especially economic life. The world’s most powerful economies have entered a recession and then deflation.

Reda Mosallam, the company’s director, explained in a statement singled out by “Al-Ru’ya” newspaper, the announcement of the federal budget for the fiscal year 2021 is a clear and honest indication of the strength and durability of the national economy and its strong interest in development, economic and social projects. The sectors of social development and social benefits received the largest share, as 26 billion dirhams of the total budget were allocated to the social development sector (426% of Budget), including an amount of 96 billion dirhams for public, higher and university education programs.

He pointed out that the state has paid great attention to the health care and community protection sector, as it has allocated 5 billion dirhams, representing about 8% of the total budget, indicating that the state is devoting most of its energy to confront the Corona pandemic.

According to the report, Reda Mosallam said that the budget numbers reflect the strenuous efforts made by the state agencies in order to maintain the desired and targeted growth of the state’s domestic product, mitigate the negative effects of the Corona pandemic, and provide all support to small and medium enterprises and maintain them as one of the main engines of sustainable development to the state.

Mosallam pointed out that the overriding goal that the rational government raises is to raise living standards and provide a decent life for citizens and residents of the country, and to exert every precious to achieve this.

6 enablers that enhance the UAE’s pioneering experience in virtual trade areas

The director of the Truth Economic and Management Consultancy, Reda Mosallam, pointed out that the most important ingredients that contribute to the success of the UAE’s pioneering experience are what the country has reached in the technology sector and the virtual business environment, which helps it to transfer the idea from its local character to a global virtual experience, while helping it Local legislative flexibility, especially in light of the facilities provided by the trade movement to and from UAE, which constitute an ideal opportunity for companies to overcome trade restrictions that may be exposed to them in their home destinations, according to their local licensing legislation.

Mosallam added that the timing is ideal to accelerate the pace of project completion, especially in light of the pandemic conditions, and the need for international business environments for flexible enablers and tools to facilitate business launch and move between markets quickly and smoothly beyond the imposed precautionary restrictions, which represent clear challenges to the ease of doing business.

October 2020

Mergers and acquisitions Steps

Mergers and acquisitions Steps

 

Mergers and acquisitions have become an important business strategy for companies looking to
expand into new markets, gain a competitive edge, or acquire new technologies and skill sets.
Decisions on mergers and acquisitions are taken after considering a few facts like the current
business status of the companies, the present market scenario, and the threats and opportunities
etc. In fact, the success of mergers and acquisitions largely depend upon the merger and
acquisition strategies adopted by the organizations.

The Ideal Steps for Mergers and Acquisitions.
1. Acquisition Strategy.

2. Acquisition Criteria.
3. Searching for Target.
4. Acquisition Planning.
5. Valuing and Evaluating.
6. Negotiation.
7. Due Diligence.
8. Purchase and sales Contract.
9. Financing.
10. Implementation.
The Importance of Consultancy Service in UAE for
Mergers and Acquisitions :
The advancement of this process by providing consultancy services in order for investors to proceed
faster. and smoothly will provide great convenience The services provided by our company
are realized under the leadership of a professional and experienced team. Even a small mistake in
mergers or acquisitions may cause the process to prolong or unexpectedly reject your application. It
is an important criterion for everything to be done properly in order to have a business in a region
with high economic power. such as the United Arab Emirates. First of all, it is a part of this
consultancy service that you know what work areas in the country have a bigger market and then
you can find the companies that can be owned by mergers or acquisitions Then, the process is
supported by preparing your documents and making the application perfectly within the specified
time.

Truth Economic succeed in the merging process of an existing companies according to the following:
 Federal Law No. (2) of 2015 in Commercial Companies.
 The requirements of the Securities and Commodities Authority.
 The requirements of the Ministry of Economy.
 UAE Central Bank requirements

Corporate Governance Direct Benefits

Corporate Governance Direct Benefits

 

Corporate Governance is the structure that characterizes the business connections that exist
between Company Shareholder, Management team, the Board of Directors, and all other key
Stakeholders. Corporate Governance makes organizations more responsible and Transparent to
Investors and gives them the devices to react to authentic stakeholder concern. It adds to
improvement and expanded admittance to capital energizes new Investments, supports financial
development, and gives business openings.
A lack of corporate governance can lead to profit loss, corruption and a tarnished image, not only
to the corporation, but to the society, or even worse will influence global as a whole. This form
of corporate governance management is also designed to limit risk and eliminate corrosive
elements within an organization.
The Direct benefits of Corporate Governance:
 Risk mitigation – An effective corporate governance framework helps to mitigate
risks, providing shareholders in non-listed companies with the comfort that although their
exits may be difficult, their interests will be safeguarded by the board and management. A
good governance framework will also induce reflection on exit strategies, giving additional
comfort to prospective shareholders deciding whether to invest in the company.
 Improved capital flow – An increase in confidence by investors and banks in the
company due to robust financial management reporting will not only improve access to
capital, but also minimise both cost of capital and cost of equity, resulting in an optimised
capital flow. Deciding on an appropriate capital structure is thus a key element of good
corporate governance. Transparency, especially regarding everything of interest to
investors, will command a lower risk premium, therefore lowering the cost of capital and
equity.
 Reputational boost – Transparency in a company’s internal policies, control
mechanisms and how it deals with its suppliers, vendors, media, staff and government
bodies will boost its reputation and thus its brand value.
 More effective, better decision-making – Good corporate governance also aims
at a faster decision-making process by establishing a clear delineation of roles between
owners and management.
 Improved reporting – Improved reporting on performance in turn leads managers and
owners to make more informed and fact-based decisions, leading ultimately to improving
sales margins and reducing costs.
 Focus on compliance – Good corporate governance will adequately rest on policies
requiring the company to stay compliant with local laws and regulations; it will synchronise
risk management and compliance to ensure the company has proper control mechanisms,
meets its objectives and operates efficiently in terms of people, processes, technology and
information.

 Higher staff retention – An increase in staff retention and motivation can be
expected, especially from senior staff, when the company has a well-defined and
communicated vision and direction. A focus on the company’s core business will also make
it easier to penetrate the market and attract the interest of shareholders. Additionally,
millennials – now the largest single group on the labour market in many countries – tend to
rank an organization’s commitment to responsible business practices highly in their
employment choices.
 Limitation of disruptive behaviour and conflicts of interest – By
establishing rules to reduce potential fraud and malpractices amongst employees; and
avoiding conflicts of interest namely through minority shareholders being given their share
of voice by being represented by independent directors.

Truth Economic and Management Consultancy has an accumulative Experience in Conducting
Corporate Governance Manual and Systems for all type of Companies including Private and
Public Joint Stock Companies.

7 basic axes that enhance the UAE’s experience in attracting foreign investment

The financial expert and managing partner of “Truth Economic and Management Consultancy” company in Abu Dhabi, Reda Mosallam, said that the United Arab Emirates has paid most of its attention in recent years to foreign investment, as it is one of the main engines of comprehensive development, as it is not only an important source of funds. But it also aims to attract and indigenize technology.

He explained that the state to attract these investments has prepared and developed the infrastructure, and the infrastructure is intended to develop an advanced road and transportation network to facilitate transportation and everything related to trade logistics, and a very sophisticated network of airports and airlines that have integrated lines with all countries of the world, noting that among Infrastructure network development projects are the development of ports to cover marine lines for all the world’s ports, in addition to developing the financial and banking system to be connected to a network that roams the world.

He pointed out that the country’s distinctive network of infrastructure has financial markets that compete with international financial markets, in addition to advanced legislation and laws that guarantee the speed of litigation, in addition to that, the strength of the monetary currency, which is the dirham, which has a cover of free currencies that makes it relatively free currencies.

He pointed out that among the advantages of the state’s infrastructure is the individualization of a competent administration and an important database for foreign investment at the Ministry of Economy, and the issuance of a law on foreign direct investment in 2018, which includes a package of measures supporting foreign investment and its continuation, the most important of which is the legal articles on credit and bankruptcy, stressing that what the state does to encourage and attract foreign investment, whether with funds or technology, helps attract and sustain foreign direct and indirect investment.

Consumers in the UAE are more economical in spending after “Covid-19”

The economist and managing partner of Truth Economic & Management Consultancy, Reda Mosallam, said that the impact of “Covid-19” on consumer behavior in the country is divided according to the economic segments of society. There is a segment of wealthy people, and this is will not be affected by the circumstances of Corona, As for the second segment, it is a segment of senior employees from bank directors and managers of large companies, and this category changes their loyalty to luxury brands as a result of the repercussions of Corona, and it is expected that they have turned to less expensive brands.

And Mosallam added that the third category, which is the largest group in society, which must be highlighted, is the middle class, which represents the real consumer spending in the country, it is most likely that the incomes of this group were affected either by salary cuts or by partial layoffs.

He added that the middle class often gave up spending on luxuries, and their loyalty to brands may have decreased, whether in clothing, perfumes or restaurants. As for necessities, likewise, it reduced spending on it, finding the cheapest things.

Mosallam emphasized that this frugal behavior among a large segment of society is expected to continue at least until mid-2021, until people feel that things have returned to normal, and that consumers need a recovery period that will remain the title of caution and savings for a period of up to 6 months, and therefore the situation will not return to normal as it was before Corona until 2022.

UAE Federal Law on Foreign Direct Investment (FDI)

According to the UAE Federal Law No.(19) of 2018 on foreign Direct Investment, the law grants up to 100% ownership for foreign investors along with incentives and competitive advantages.

The Scope:

  • The law shall be applied to foreign direct investment projects that are established in the land of the country, while it does not apply to the financial and non-financial free zones.

 

The Direct Benefits and Guarantees:

  • The licensed foreign investment companies are treated like national companies.
  • No expropriation ensuring the property is not expropriated except for public benefit in exchange for fair compensation.
  • Not to seize or confiscate project funds unless by a court hearing.
  • Ownership 100%.
  • The right to use real estate.
  • Make financial transfers for project returns outside the country.
  • Ensuring the confidentiality of technical, economic and financial information and investment initiatives.
  • Insert a partner or a number of partners.
  • Transfer ownership to a new investor.
  • Amending the articles of association.
  • Change the legal form of the company.
  • Merger, acquisition or liquidation.

 

Truth

Truth Economic and Management Consultancy is qualified and has an accumulative experience in establishing Public Stock Joint Companies (PJSC) in the UAE. Moreover, Truth will arrange the required steps to assist the company in changing the existing license to Foreign Direct Investment license under the positive list to achieve up to 100% ownership.