A feasibility study is one of the most essential steps before launching any new project in Egypt whether it is commercial, industrial, service-oriented, or investment-based. With the continuous changes in the Egyptian economic environment, the need for a deep and accurate analysis has become crucial to evaluate a project’s viability, expected returns, risks, and market opportunities.

A feasibility study is not just a standard report it is a strategic decision-making tool that provides investors with a clear vision before committing financial capital.

What Is a Feasibility Study?

A feasibility study is a comprehensive analysis designed to answer key questions:

• Is the project feasible?

• Is it profitable?

• Does it have long-term sustainability?

• What capital is required?

• And is the Egyptian market capable of absorbing this type of project?

The study answers these questions through scientific and analytical methods before any investment is made.

The Importance of a Feasibility Study in the Egyptian Market

Egypt has a uniquely dynamic market characterized by significant economic shifts, large opportunities, strong competition, and a distinct investment regulatory environment.

A feasibility study helps investors:

1. Understand the Market and Competition

Analyze supply and demand, identify customer needs, and assess competitors.

2. Identify Potential Risks

Including price fluctuations, operational cost changes, supply chain issues, or competitive challenges.

3. Determine Required Capital

Including setup costs, equipment, operational expenses, labor, and marketing.

4. Forecast Profits and Return on Investment (ROI)

Estimate revenue, profit projections, breakeven point, and cash flow forecasts.

5. Evaluate Project Expansion Potential

Especially for industrial or technology-driven projects.

Components of a Feasibility Study in Egypt

A complete study includes three essential layers:

1) Market Study

This phase covers:

• Market size estimation

• Customer behavior and demographics

• Best geographic locations for the project

• SWOT competitor analysis

• Economic opportunities and market trends

2) Technical Study

This stage focuses on how to implement the project:

• Selecting the appropriate location

• Determining production or operational requirements

• Identifying necessary equipment and technology

• Defining staffing needs

• Designing the operational workflow

• Determining the production or service capacity

3) Financial Study

The core of the feasibility study, which includes:

• Establishment cost

• Monthly and annual operating expenses

• Expected revenues

• Profit and loss forecast

• Breakeven point

• ROI analysis

• 3–5 year financial projections

Examples of Profitable Projects in Egypt

(Can be customized according to the investor’s budget and region)

• Restaurants and cafés

• Small food production factories

• Distribution and supply projects

• E-commerce stores

• Plastic or packaging materials manufacturing

• Training and education centers

• Logistics and delivery services

How to Choose the Right Project in Egypt?

✔ Evaluate your skills and background

Projects that align with your experience have a higher chance of success.

✔ Calculate your available capital

Avoid choosing a project beyond your financial capacity.

✔ Study the market thoroughly

Even the best projects can fail if launched in the wrong location.

✔ Focus on high-demand sectors

Such as food, logistics, education, e-commerce, and technology.

Is a Feasibility Study Necessary for Small Projects?

Yes.
Even small projects require feasibility studies to avoid financial loss and ensure the business starts on a solid foundation.

Why Choose a Professional Firm like Fathalla CPA?

A feasibility study requires more than numbers—it requires expertise in:

• Egyptian market analysis

• Investment law and regulatory requirements

• Professional financial modeling

• Tax and financial risk assessment

• Realistic revenue projections

• Preparing bank- and investor-ready documentation

Specialized firms like Fathalla CPA provide accurate feasibility studies that help entrepreneurs and companies make confident, informed investment decisions.

Conclusion

A feasibility study for a new project in Egypt is not optional it is the line between a successful project and one that fails before it begins. By thoroughly analyzing the market, technical aspects, and financial expectations, investors whether small or large can make the right decisions with confidence.