Different types of feasibility studies
The economic feasibility studies are concerned with their important role in achieving optimal
use and distribution of available economic resources. There is a close relationship between
feasibility studies and the nature of investment decisions. Whenever the decision is based
on comprehensive, accurate, objective and scientific studies, the more successful the
decisions will be in achieving the goals.

Types of feasibility studies
The economic feasibility studies are concerned with their important role in achieving optimal
use and distribution of available economic resources. There is a close relationship between
feasibility studies and the nature of investment decisions. The more decisions are adopted,
the more accurate, objective and scientific the decisions will be.
The specialists agreed to distinguish two types of feasibility studies:
Initial feasibility studies
Is a preliminary study or report that outlines all aspects of a proposed project or project,
through which a decision can be made either to abandon the project or to move to a more
detailed study. As a result of this study the project is abandoned or moved to a detailed
study.
Issues addressed by initial feasibility studies include:
● Preliminary study on the expected domestic and foreign demand for the products of
the project and the extent of the market need for them.
● Preliminary study on the total costs of the project, whether capital or operating
costs.
● Preliminary study on the feasibility of the project technically, identifying the project
needs of workers and raw materials.
● Preliminary study on the alternative sites of the proposed project, and choose the
best.
● The impact of the project at the national level and on the economic development
process.
● Preliminary study on the sources of funding for the project whether it is self
financing or other sources.
● Preliminary study on the expected returns (revenues) of the proposed project.
● Demonstrate the compatibility of the project with the customs, traditions and laws
prevailing in society.
Detailed feasibility studies:
Is a detailed report covering all aspects of the proposed project, on the basis of which senior
management can make its decision either by abandoning the project definitively or moving

on to the implementation stage. The initial and detailed feasibility studies are
complementary and consecutive, and one study cannot be sufficient to be alternative to the
other study, ie, is not compensated. As a result of this study either the project is abandoned
or the implementation process begins.
The detailed feasibility study consists of a number of studies complementary to each other,
but one is not a substitute for the other. These studies are:

1. Market study.
2. Technical study.
3. Finance study.
4. Financial study.
5. Environmental study.
6. Differentiation between projects and selection of the best project (decision-making).