Al Suleiteen Agricultural and

Industrial Complex

Feasibility study

Integrated Project For Integrated Services

Umm Slal Ali area

July 2016

Al Suleiteen Agricultural and Industrial Complex

Feasibility study
Integrated Project For Integrated Services

Umm Slal Ali area

Summary
Integrated Project For Integrated Services
Project name
Headquarters Um Slal Ali and his branches in other Project site
regions
5 years
-

The

Project
production

of

vegetables

and

plants

Life

in Project purposes

greenhouses
- The production of flowers and landscaping
- Filling and packaging of vegetables and herbs
Agricultural Production and Marketing Services
360,000 kg vegetables in the year.

(1) years and (6) months 10%

Type of productive
activity
Expected Production
capacity
Total cost of the
project
Recovery of capital
period
Profitability ratio

The technical feasibility of the project

Integrated Services Study
- Project Name: Integrated Project Services.
-

The project siteThe project area, located in (Um Slal Ali), about 25 km from Doha, has

stared vegetable production as one of pinner in vegetable farming in Qatar.

Our production is a different concept of open cultivation and greenhouse
production. We are growing wide range of vegetables of 30 different types
mainly Tomato, Egg Plant, Cucumber, Capsicum, Cauliflower, Broccoli,
Lettuce, Squash, Cabbage, Beans, Sweet Melon, Herbs and Strawberry.

The farm was established and has been active in Qatar since 1990. , it
becomes a center for cooperation with various scientific bodies such as the
University of Qatar ,Qatar Science and Technology and other international
research centers of Arab and international, such as the International Centre
for the Study of the Dry Areas (ICARDA) , the Arab Center for the Studies of
arid zones and dry lands (ACSAD) , the Agricultural research Centre for the
Arab Republic of Egypt ,

the international Center for the development of

vegetables, and other global bodies and research in this field.

Project Objectives:

The project aims to provide supply services in an integrated manner to

complexes, families and individuals, and the provision of agricultural
products and livestock to shopping centers in Qatar, both from the farm
produce or group farms abroad to cover the shortfall, which provides it for
the targeted, customers and clients with the possibility of introducing home
delivery services for them in the future. The project aims mainly to achieve
the following

1. Provide agricultural marketing services for agricultural products of

Group farms inside and outside Qatar of vegetables and fresh and
chilled fruit.
2. Provide marketing services, such as red meat, cows, sheep, goats and
white, such as poultry, fish and all the other eggs and dairy products and
cheeses animal products (a later stage).:
3. Develop food services provided to clients and customers, according
to the highest quality and international health and safety with the
highest international quality certificates such as ensuring production
quality and food safety certification standards.
Contribute to reduce the food access costs for the various segments .4
of the society by providing offers which are commensurate with
.community members conditions

5. Work on the development of the complex to provide a complete service

for the cultivation and production of seedlings, plants and ornamental trees
and expand the existing workload on the farm to meet the growing demand
of ornamental plants and the development of public landscaping and home
services.
6. Seek and contribute to food security, access to self-sufficiency for
individuals and society by providing a range of production both in terms of
quantity or quality.

The importance of the project .

The importance of this project lies in the development that has occurred in
the complex during the past years, both in terms of production, increase or
prolonging the product life, which did not happen by age. So the current farm
production helps a lot in providing good nutritional value because of the farm
proximity to marketing centers, customers and target customers
the spread of shopping centers outside Doha city and growing awareness
among consumers of the importance of seeking fresh products, we also
examine the application for home delivery service and may we set out to
prepare a questionnaire to take the opinion of the residents of communities

around the idea. in the case of the idea success it , at least at this stage,
would increase considerably the demand for our products and with much
better prices
Justifications and implementation of the project:
The justification consists in the following points:

There is no project like this , at least for the time being , the production
of all kinds of vegetables ,herbs, and packaged and delivered directly

to the consumer, whether through sales points or home delivery.

encourage the government and motivate the private sector to work in
the food supply in order to achieve food security for citizens and
residents alike and through financial support of the Qatar Development

Bank to provide soft loans to set up such projects.

Find and create new marketing outlets for farm products through the
old customers and attract new by providing an integrated distribution
network to meet all their food needs and prices that meet their desires
and take into account the incomes of all segments of society in the

state.
Open the marketing outlet for products (marketing) exhibition at the
farm entrance.

The basic components of the project:

The project consists of three basic modules operate in an integrated manner
to achieve the objectives for which the project was established, and these
units are:

1. Vegetables production Unit in greenhouses:

the unit is working on the cultivation and production of all kinds of
vegetables and grasses preferred in the market by using modern farming
system in greenhouses in order to maintain sustainable production along
the year and that there are no gaps in the production and distribution of
current and potential customers in the future. We also examine the export
of herbs like mint and basil, and others to Europe. Some shipment have
been already exported .
2. Production and Flowers landscape s Unit :
This unit is working on the production of seasonal flowers and decorations
for all uses of public projects ,parks, home gardens whether with
government or private sector . The unit design and landscape the public
and private gardens and manage them in form in which that achieve the
requested purpose.

A great success has achieved in this field, where flowers production and
ground covers exceeded during the

past year more than eight million

seedlings annually in the range of two million seedlings in addition to some

types of cut flowers and indoor plants.
2.

vegetables package and marketing s unit:

This unit receive all types of farm products from vegetables and grasses ,
sorted , cleaned , packaged and then transported for delivery to points of
sale or distribution.
Marketing study for the project:
Based on the results of the marketing study and field survey conducted on
estimating

the

development

of

shopping

centers

and

marketing

of

vegetables and fruits that showed a steady increase in the open marketing
complexes and markets in different parts of the country, as well as
residential complexes and the continued increase in the population and thus
high purchasing power which enhances and confirms the importance of the
project set up at this time in spite of the economic situation in the world and
the lack of financial resources for many of the Gulf countries, including Qatar

Financial feasibility study

The study examines the project according to its unit,
namely:

I-

Unity of vegetables and herbs produced in

greenhouses:

The proposed space: 20,000 square meters

Cost / QR

Item
The costs of establishment and the

No.
1

creation greenhouses:
5,690,000
500,000
500,000
595,000
7,285,000

- The cost of greenhouses

- The cost of transport and deportation
- Installation and construction
- Running costs for a year
- Total of Establishment costs

Annual operating cost:

273,000
60,000
22,630
300,000
51,018
300,000
120,000
56,332
1,182,980

- Labor
-Seeds
- Irrigation Water
- Fertilizer
- Electricity
- initial operating expenses
- Transportation
- Miscellaneous expenses 5%

8,467,980

- Total operating costs

Total Unit cost

II- Flowers and landscaping Unit

Cost / QR

Item

No.

The construction of the greenhouse 1

4,900,000
690,000
500,000
500,000
293,750
6,168,750

costs:
- The supply of greenhouse
-

Installation

and

creation

of

the

greenhouse
- Transportation and deportation
- Ongoing expenses
- Other 5%
- The total construction costs
Annual operating cost:

273,000
51,018
22,630
120,000
60,000
30,000
556,648

- Man power
- Electricity
- Water
- Transportation and deportation
-Publicity and announcement
-Other services

6,725,398

- Total operating costs

Total Unit cost

III- Cost of the packaging and marketings unit:

1. Initial incorporation costs :

A - Infrastructure and buildings costs: QR 500,000
B - Machinery and equipment costs:
No Item
.
1
2
3
4
5
6
7
8

QR cost

Vegetable Processing Machine

682,732

Cleaning vegetables machine

61,750

Metal detection device for vegetables

58,220

Dual-packing machine
Mixing and blending vegetables machine

162,316
59,860

stand alone machine

125,501

Dropout prevention device

125,501

onion Peeling machine

446,511

Total Costs

1,722,391

1.Annual operating costs

No Item
.
1
2
3

QR cost

Man power :
- Supervisor 1 8,000 12
- worker: 8 2,000 12
Deportation 10,000 12

96,000
192,000
120,000

Service expenses 15,000 12

180,000

-Cost of the packaging and marketings unit:

Item
Establishment cost
Operating cost
Total

QR Cost
2,222,391
492,000
2,714,391

Total of project charges

Vegetables Unit

QR 8,467,980

Flowers Production Unit

Vegetable

packaging

unit
Total

6,725,398QR
QR 2,714,391

QR 17,907,769

Expected revenue from the project

Expected Revenue

for the project consists of:

A- income of vegetables unit production in

greenhouses:
Productive power of vegetables during the year

360,000 kg

Damaged 10%

36,000 kg

Net production after deducting the damaged

324.000 kg

The price rate at the farm gate

QR 15

The total expected income during the year 324,000 15

QR 4.869.000

b- A- income of Flowers unit production:

Productive power of vegetables during

10.000.00

the year

Seedlings

Damaged 10%

1.000.000

Net production after deducting the

seedlings

damaged

9.000.000

The price rate per seedling

seedlings

The total expected income during the

QR 75

year 9.000.000 75
QR 6.750.000

c- Income of vegetables packaging and marketing

unit
Productive power per day
1.000 KG
Sales Price rate for Kg per QR 18
day
Total
1.000x18x30x12
year

income QR 6.480.000
during

Total expected income for the project during year

QR6,480,000
QR 4,860,000
QR6,750,000

Income of Vegetable
packaging unit

QR 18,090,000 Income of Vegetable

Production unit
Income of Flowers unit
Total

Income Costs / 18,090,000-17,907,769=QR 182,231

Cash flow for the integrated project

Integrated Services during useful life (5) years
(Qatari Riyals)
Total in QR
32,400,000
24,300,000
33,750,000

6,480,000
4,860,000
6,750,000

6,480,000
4,860,000
6,750,000

6,480,000
4,860,000
6,750,000

6,480,000
4,860,000
6,750,000

6,460,00
0
4,860,00
0
6,750,00

90,450,000

18,090,000

18,090,000

18,090,000

18,090,000

0
18,090,

Item
: Incomes
Packaging vegetables
Vegetable Production
flowers Production

Total Income

000
: Charges and costs
15,676,141
2,460,000
5,914,900
2,783,240

26,834,281

0
492,000
1,182,980
556,648

2,231,628

0
492,000
1,182,980
556,648

2,231,628

0
492,000
1,182,980
556,648

2,231,628

0
492,000
1,182,980
556,648

2,231,628

15,676,1
41
492,000
1,182,98
0
556,648
17,907,
769

Establishment
Package operating
Vegetable operating
Flowers operating
Total charges

63,615,719
6,541,571
1,635,392
9,812,359
45,626,397

15,858,372
1,630,837
407,709
2,446,256
11,373,570

15,858,372
1,630,837
407,709
2,446,256
11,373,570

15,858,372
1,630,837
407,709
2,446,256
11,373,570

15,858,372
1,630,837
407,709
2,446,256
11,373,570

182,231
18,223
4,556
27,335
132,117

Marginal profits
Depreciations (-10%)
Rakatt (4/10)
Taxation (-15%)
Total Incomes

financial assessment of Integrated the project for Integrated

Services:
According to the criteria of economic and financial assessment of projects, you can use the following
criteria to ascertain the extent of the economic feasibility of the project
Criteria :
1. The capital payback period:
For calculating payback period, we can adopt the following equation:
Payback Period = total investment net annual cash flow
17,907,769

11.373.570= 1.57

This means that the project unable to recover its invested money, during (1) year and (6)
months, a period

less than a half-life of the project and a very short time compared to project

life: (5) years, enabling the project to benefit from the remaining period of the project life as net
profits which can be introduced in other productive projects. Accordingly, the project in
accordance with this standard is acceptable in economic terms.

2. Proof of project business profitability

To calculate the business profitability proof of the project, we can use the following equation:
Profitability = total cash inflows total investment.
18,090,000 17,907,769 = 1.010 % 1.010%

This means that the project could cover all the costs invested in it and achieved a net return of 10% of the
share capital, to be equivalent to QR (1,790,776) QR. According to this standard, the project is considered
acceptable from the economic point of view.