2023

[ Business plan and feasability study ]

This report includes business plans and feasibility studies for major projects under the
management of Gulf Union Gate WLL (GUG) that will require an investment.
Table of content:

Project 1: Establishment of an affordable Hospital in Salalah, 2

Oman

Project 2: Establishment of a Spare Part Manufacturing 9

Company in Salalah Free Zone, Oman

Project 3: Bitumen Cold Packing Company in Oman 16

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 Project 1: Establishment of an affordable Hospital in Salalah, Oman

1. Executive Summary:

This business plan outlines the establishment of a hospital in Salalah, Oman,

on a commercial land spanning 10,000 square meters. The plan includes
financial analysis, market analysis, technical analysis, and return on
investment (ROI). The hospital aims to provide quality healthcare services to
the local population. The plan also includes internet links for further reference.

2. Company Overview:

 Name: ima Medical Complex

 Location: Salalah, Oman
 Mission: To provide exceptional healthcare services to the community,
focusing on affordability, accessibility, and quality.
 Vision: To become a leading healthcare provider in Salalah, known for
its commitment to patient care and community well-being.

3. Market Analysis:

The market analysis aims to understand the demand for healthcare services
in Salalah, Oman, by considering the population, healthcare infrastructure,
competitors, and potential patient volume.
 Population:
o Salalah is the second-largest city in Oman, with a population of
approximately 480,000 (as of 2022).
o The population is diverse, consisting of both locals and
expatriates from various nationalities.
o The city has experienced population growth due to economic
development and tourism.
 Healthcare Infrastructure:
o Salalah has a well-developed healthcare infrastructure, with
multiple government and private healthcare facilities.
o The Sultan Qaboos Hospital is the largest government hospital,
providing a wide range of medical services.
o Private hospitals and clinics, such as Starcare Hospital and
Royal Hospital, also contribute to the healthcare sector.
 Competitors:
o Prominent competitors include Sultan Qaboos Hospital,
Starcare Hospital, and Royal Hospital.
 Potential Patient Volume:
o The local population's and expat healthcare needs are high
specially for an affordable healthcare facility due to the middle

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 range salaries and the medical insurance scheme adopted with
the local private and governmental companies.
o The market analysis revealed a high need of common health
conditions, chronic diseases, and the aging population
especially with Salalah being a tourism attraction area in Oman
and expecting over 1,000,000 people during the season period.
 Healthcare Services Gap:
o There will be a focus on offering affordable yet quality
healthcare services to cater to the local, expat and tourist
segment of the population.
 Key Factors Influencing Demand:
o Socioeconomic Factors: Consider the income levels,
employment rates, and insurance coverage of the local
population.
o Cultural Factors: Understand the cultural beliefs and practices
related to healthcare-seeking behavior.
o Tourist Demand: Salalah is a popular tourist destination, so
consider the potential demand for healthcare services from
tourists.
 Links for Reference:
o Ministry of Health, Oman: [https://www.moh.gov.om/]
o Salalah Tourism Portal: [https://www.experienceoman.om/]

Market analysis conclusion:

The market analysis indicates a substantial demand for healthcare services in

Salalah, Oman. The city's growing population, well-developed healthcare
infrastructure, and presence of both government and private healthcare
providers suggest a competitive market. By targeting the affordable
healthcare segment and addressing any gaps in the current services, a new
hospital can attract a significant patient volume. It is crucial to continuously
monitor the market dynamics, adapt to changing patient needs, and
differentiate the hospital's offerings to ensure long-term success.

4. Technical Analysis:

The technical analysis aims to assess the feasibility of establishing a hospital

in Salalah, Oman, on a commercial land. The analysis considers factors such
as land suitability, facility design, and medical equipment requirements, while
ensuring compliance with local regulations and standards.
 Land Suitability:
o The land located within a commercial zone suitable for commercial
business project. The land located on a main highway and within
residential areas suitable for commercial projects such as hospitals.

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 o The chosen location and area does not have any healthcare or
hospital that can be consider as a competitor which an opportunity
to lead the market at this area. The nearest hospital to this area is a
governmental hospital located around 10 Kilometers from the
chosen land.
o The chosen zone for healthcare facilities complies with local
regulations to build a hospital.

 Facility Design:
o A comprehensive facility design plan that optimizes space
utilization and promotes efficient workflow will be developed.
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 o The hospital's functional areas, such as waiting areas, consultation
rooms, diagnostic laboratories, operating theaters, and patient
rooms will be considered.
o There will be an incorporation to the design elements that enhance
patient comfort, safety, and accessibility, such as ramps, elevators,
and adequate parking facilities.
 Medical Equipment Requirements:
o Conduct a thorough analysis of the medical equipment required to
provide quality healthcare services.
o Identify the necessary equipment for various departments, including
diagnostic imaging, laboratory testing, surgical procedures, and
patient monitoring.
o Consider the equipment's quality, reliability, maintenance
requirements, and compatibility with local power and infrastructure.
 IT and Digital Infrastructure:
o Assess the hospital's digital infrastructure requirements, including
electronic medical records, telemedicine capabilities, and data
security measures.
o Plan for a robust IT network, high-speed internet connectivity, and
communication systems to support seamless operations and
patient care.
 Energy Efficiency and Sustainability:
o Incorporate energy-efficient practices and technologies to reduce
the hospital's carbon footprint.
o Evaluate options for renewable energy sources, such as solar
panels, to minimize energy costs and promote sustainability.
o Consider water conservation measures and waste management
systems to ensure environmental responsibility.
 Collaboration and Integration:
o Foster collaboration with local healthcare providers, clinics,
pharmacies, and laboratories to create a comprehensive healthcare
network.
o Establish partnerships for referrals, specialized services, and
sharing of resources and expertise.
o Explore integration with local healthcare information exchange
systems to facilitate seamless patient information sharing.

Conclusion:

The technical analysis plays a crucial role in assessing the

feasibility of establishing a hospital in Salalah, Oman. By
considering land suitability, facility design, medical equipment
requirements, and compliance with local regulations and standards,
the hospital can ensure a well-designed and functional
infrastructure. Additionally, incorporating IT systems, energy

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 efficiency measures, and collaboration with local healthcare
providers will enhance the hospital's operations and patient care. It
is essential to engage with experts, architects, and contractors to
ensure the successful implementation of the technical aspects of
the hospital project.

5. Financial Analysis:

To evaluate the financial feasibility of the project, the following factors need
to be considered:
- Land Rental Cost: The land will be rented for 15 years at a cost of
USD 350,000 per year. This amounts to a total of USD 5,250,000 over
the rental period.
- Monthly Expenses: The estimated monthly expenses are USD
250,000.
- Building Cost: The estimated building cost is USD 2,500,000.
- Equipment Cost: The estimated equipment cost is USD 1,500,000.
- Expected Revenue: The projected revenue per month is USD 476,000
for the first year, USD 605,000 for the second year, and USD 950,000
onward.

Investment Cost:

The investment cost can be calculated by adding the land rental cost,
building cost, and equipment cost:

Investment Cost = Land Rental Cost + Building Cost + Equipment Cost +

Monthly Expenses for 3 years
Investment Cost = USD 5,250,000 + USD 2,500,000 + USD 1,500,000 +
USD 9,000,000
Investment Cost = USD 18,250,000

Payback Period:

The payback period represents the time required to recoup the initial
investment. It can be calculated by dividing the investment cost by the
monthly net cash flow:

Monthly Net Cash Flow = Revenue - Expenses

For the first year:

Monthly Net Cash Flow = USD 476,000 - USD 250,000
Monthly Net Cash Flow = USD 226,000

Payback Period = Investment Cost / Monthly Net Cash Flow

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Payback Period = USD 18,250,000 / USD 226,000
Payback Period (Based on 1st year Monthly Net Cash Flow) = 80.7 months
Payback Period (Based on 2nd year Monthly Net Cash Flow) = 51.4 months
Payback Period (Based on 3rd year Monthly Net Cash Flow) = 26.1 months

Return on Investment (ROI):

ROI measures the profitability of the investment and is expressed as a

percentage. It can be calculated using the formula:

ROI = (Net Profit / Investment Cost) x 100

After the 3rd Year:

Net Profit = Revenue - Expenses
Net Profit = USD 950,000 - USD 250,000
Net Profit = USD 700,000

ROI = (USD 700,000 / USD 18,250,000) x 100

ROI = 3.8%

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6. Conclusion:

Based on the financial analysis, market analysis, technical analysis, and ROI
calculation, establishing a hospital in Salalah, Oman appears feasible. The
projected revenue indicates potential profitability, although the payback period
of 26.1 months after the 3rd operational year suggests a longer time frame for
recouping the initial investment.

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Project 2: Establishment of a Spare Part Manufacturing Company in Salalah
Free Zone, Oman

1. Executive Summary:

This business plan outlines the establishment of a spare part manufacturing

company in Salalah Free Zone, Oman, on an industrial land spanning 10,000
square meters. The plan includes financial analysis, market analysis,
technical analysis, and return on investment (ROI). The company aims to
produce high-quality spare parts for various industries. The plan also includes
internet links for further reference.

2. Company Overview:

 Name: Upstream Global for Technical Solutions

 Location: Salalah Free Zone, Oman
 Mission: To be a leading manufacturer of high-quality spare parts,
catering to the needs of diverse industries.
 Vision: To contribute to the growth and development of the local
economy by providing reliable and cost-effective spare part solutions.

3. Market Analysis:

The market analysis aims to understand the demand for spare parts in Salalah,
Oman, and the surrounding regions. This analysis will consider the industries that
require spare parts, competition, and potential customer volume.

 Industries Requiring Spare Parts:

It was identified through the market study and survey that the key
industries in Salalah and the surrounding regions relied on spare
parts. Some industries that commonly require spare parts include:
o Automotive: The automotive industry, including car dealerships,
repair shops, and transportation companies, requires spare
parts for vehicles.
o Construction: The construction industry relies on spare parts
for heavy machinery, construction equipment, and building
materials.
o Manufacturing: Various manufacturing sectors, such as
electronics, textiles, and food processing, require spare parts
for machinery and production lines.
o Oil and Gas: The oil and gas industry in Salalah and
neighboring regions requires spare parts for drilling equipment,
pipelines, and refining processes.

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 o Shipping and Logistics: The shipping and logistics industry
requires spare parts for vessels, cargo handling equipment,
and transportation infrastructure.
o Agriculture: The agriculture sector relies on spare parts for
farming machinery and equipment.
 Competition Analysis:

The market was studied and survived to identify the existing

competitors in the spare parts market in Salalah, Oman, and the
surrounding regions. Consider the following aspects:
o Market Share: Assess the market share of each competitor and
their dominance in specific industries.
o Product Range: Analyze the types of spare parts offered by
competitors and their quality.
o Pricing Strategy: Understand the pricing strategies followed by
competitors and evaluate their affordability and
competitiveness.
o Reputation and Customer Satisfaction: Consider the reputation
of competitors and their customer satisfaction levels.
o Distribution Channels: Identify the distribution channels used
by competitors to reach their customers.

The survey revealed that there isn’t a spare part manufacturing

facility and all the existing are either care dealer suppliers or
shops importing spare parts. Especially for the Oil and Gas
companies tools such as the drill bets, liners, pistons and other
parts.

 Links for Reference:

o Salalah Free Zone: [https://www.salalahfreezone.com/]
o Oman Chamber of Commerce and Industry:
[https://www.chamberoman.com/]

Market analysis Conclusion:

The market analysis suggests a significant demand for spare parts in Salalah,
Oman, and the surrounding regions. The automotive, construction,
manufacturing, oil and gas, shipping and logistics, and agriculture industries
are major consumers of spare parts. By assessing the competition,
understanding customer volume, and identifying potential growth areas, a
spare part manufacturing company can position itself to meet the market
demand. It is essential to continuously monitor the market dynamics, stay
updated with industry trends, and establish strong relationships with
customers and suppliers to ensure long-term success.

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4. Technical Analysis:

The technical analysis aims to assess the feasibility of establishing a spar

part manufacturing facility in Salalah free zone, Oman, on an industrial land.
The analysis considers factors such as land suitability, facility design, and
workshop equipment requirements, while ensuring compliance with local
regulations and standards.

 Land Suitability:
o The land located within an industrial free zone suitable for
commercial and industrial business project. The land linked to the
local infrastructure and within an area surrounded by various
industries and port.
o The chosen location and area does not have any spare part
manufacturing facility that can be consider as a competitor which
an opportunity to lead the market at this area.
o The chosen free zone for industrial business facilities complies with
local regulations.

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 Facility Design:
o A comprehensive facility design plan that optimizes space
utilization and promotes efficient workflow will be developed.
o The manufacturing facility’s functional areas, such as waiting areas,
laboratory, workshops, loading and unloading areas, and offices will
be considered.
o There will be an incorporation to the design elements that enhance
safety, and accessibility, such as ramps, elevators, and adequate
parking facilities.
 Workshop and Manufacturing Equipment Requirements:
o Conduct a thorough analysis of the workshop machining equipment
required to provide quality manufacturing services.
o Identify the necessary equipment for various industry.
o Consider the equipment's quality, reliability, maintenance
requirements, and compatibility with local power and infrastructure.
 Energy Efficiency and Sustainability:
o Incorporate energy-efficient practices and technologies to reduce
the facility's carbon footprint.
o Evaluate options for renewable energy sources, such as solar
panels, to minimize energy costs and promote sustainability.
o Consider water conservation measures and waste management
systems to ensure environmental responsibility.

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 Technical Analysis Conclusion:

The technical analysis plays a crucial role in assessing the

feasibility of establishing a spare parts manufacturing facility in
Salalah free, Oman. By considering land suitability, facility design,
machining equipment requirements, and compliance with local
regulations and standards, the facility can ensure a well-designed
and functional infrastructure. Additionally, incorporating energy
efficiency measures and collaboration with local authority and
service providers will enhance the facility's operations and client’s
satisfaction. It is essential to engage with experts, architects, and
contractors to ensure the successful implementation of the
technical aspects of the spare part manufacturing project.

5. Financial Analysis:

To evaluate the financial feasibility of the project, the following factors need
to be considered:
- Land Lease Cost: The land will be rented for 10 years at a cost of
USD 207,000 per year. This amounts to a total of USD 2,070,000 over
the lease period.
- Monthly Expenses: The estimated monthly expenses are USD
300,000.
- Building Cost: The estimated building cost is USD 1,950,000.
- Equipment Cost: The estimated equipment cost is USD 5,150,000.
- Expected Revenue: The projected revenue per month is USD 575,000
for the first year, USD 766,200 for the second year, and USD
1,021,600 onward.

Investment Cost:

The investment cost can be calculated by adding the land rental cost,
building cost, and equipment cost:

Investment Cost = Land Lease Cost + Building Cost + Equipment Cost +

Monthly Expenses for 1st year
Investment Cost = USD 2,070,000 + USD 1,950,000 + USD 5,150,000 +
USD 3,600,000
Investment Cost = USD 12,770,000

Payback Period:

The payback period represents the time required to recoup the initial
investment. It can be calculated by dividing the investment cost by the
monthly net cash flow after the 3rd year:

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Monthly Net Cash Flow = Revenue - Expenses

For the 3rd year:

Monthly Net Cash Flow = USD 1,021,600 - USD 300,000
Monthly Net Cash Flow = USD 721,000

Payback Period = Investment Cost / Monthly Net Cash Flow

Payback Period = USD 12,770,000 / USD 721,000
Payback Period (Based on 1st year Monthly Net Cash Flow) = 18 months

Return on Investment (ROI):

ROI measures the profitability of the investment and is expressed as a

percentage. It can be calculated using the formula:

ROI = (Net Profit / Investment Cost) x 100

based on 3rd Year revenue:

Net Profit = Revenue - Expenses
Net Profit = USD 1,021,600 - USD 300,000
Net Profit = USD 721,000

ROI = (USD 721,000 / USD 12,770,000) x 100

ROI = 5.6%

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6. Conclusion:

Based on the financial analysis, market analysis, technical analysis, and ROI
calculation, establishing a spare part manufacturing company in Salalah Free
Zone, Oman appears feasible. The projected revenue indicates potential
profitability and a short payback period of 18 months once the 1st three
operational startup period is over for recouping the initial investment.
Accordingly, the payback including the 1st two years will be 42 months which is
short period for similar industrial business.

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 Project 3: Bitumen Cold Packing Company in Oman

1. Executive Summary:

We present a comprehensive business plan for establishing a bitumen cold

packing company in Oman. The company will operate on a leased industrial
land measuring 20,000 square meters for a period of 15 years, with an annual
lease cost of USD 96,000. The facility building cost is estimated at USD
2,000,000, and the equipment cost is estimated at USD 5,000,000. Monthly
expenses are projected to be USD 40,000. The expected monthly revenues
for the first year are USD 2,500,000, increasing to USD 4,300,000 in the
second year, and USD 7,600,000 thereafter.

2. Company Overview:

 Name: PolySkin
 Location: Oman
 Mission: To be a leading supplier of high-quality bitumen product,
catering to the needs of diverse industries.
 Vision: To contribute to the growth and development of the local
economy by providing reliable and cost-effective solutions.

3. Strategic Location:

Oman is strategically situated and well connected to our primary markets in

Asia, Middle East and Africa. Our project requires two strategic points; a
refinery that produces bitumen which is available in Oman & near container
ports that can serve our markets which the Bitumen commodity is required
heavily in Asia, Middle East and Africa.

4. Market Analysis:

To ensure the success of our bitumen cold packing company, we have

conducted a comprehensive market analysis in Oman. The analysis reveals a
growing demand for bitumen products due to extensive infrastructure projects
and construction activities in the area. The strategic location of refineries in
Oman further enhances the potential for business growth, as it offers easy
access to regional markets and international shipping routes.

5. Technical Analysis:

Our technical analysis focuses on the operational aspects of the bitumen cold
packing process. We have identified the necessary equipment and machinery
required for efficient production, packaging, and storage of bitumen products.

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 Additionally, we have assessed the infrastructure requirements, including
power supply, water availability, and waste management, ensuring a smooth
and sustainable operation.

6. Financial Analysis:

Investment Cost:
 Facility Building Cost: USD 2,000,000
 Equipment Cost: USD 5,000,000
 Land Lease Cost (15 years): USD 1,440,000 (USD 96,000 per year *
15 years)

Total Investment Cost: USD 8,440,000

Monthly Expenses: USD 40,000

Annual Expenses: USD 480,000 (USD 40,000 * 12 months)

Payback Period Calculation:

Payback Period = Total Investment Cost / Monthly Net Cash Flow
Payback Period = USD 8,440,000 / (USD 2,500,000 - USD 40,000)
Payback Period = 3.52 years (rounded to nearest decimal place)

Return on Investment (ROI) Calculation:

ROI = (Net Profit / Total Investment Cost) * 100

Based on 1st year revenue on market price for the bitumen (average of
USD 420 per MT) and an expected production of 1 Million MT during the
1st year:
Net Profit = Revenue - Expenses
Net Profit = (USD 420 X 20,000 MT) - USD 480,000
Net Profit = USD 7,920,000

ROI = (7,920,000 / USD 8,440,000) * 100

ROI = 93%

7. Assumption:

Our JV partner has over 20 years of experience trading Bitumen and

dealing with clients especially in the Cold Packed solutions (Drums &
Jumbo Bags). Throughout the years we have been experiencing with all
the issues that comes with the delivery of the Bitumen. Meltable
packaging is the OPTIMUM solution for all the issues and hurdles of
Bitumen supply and delivery as its design and functionality provide all the
needed factors for the best solution to the industry.

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 Meltable packaging is a pioneer product ideal for the bitumen market
needs. The first (and still the industry's best) fully meltable package with
unique, patented technology.

Meltable packaging saves time on the job, eliminates the hassle of waste,
and delivers stable, weatherproof storage and durable. Its quickly
dissolving, polymer bead construction eliminates the messy clogs and
tangles common with the plastic liners and wrappers used in other
meltable packaging solutions.

Competitive Edges:

- Sizing of Packages / Production efficiency (10-20 kg.)

- Melting Capability / Efficiency Zero Residues, Totally Meltable
- Cost of Packaging
- Durable
- Stability in Transportation
- Faster & Safer
- Easiest Handling introduced to Bitumen

8. Assumption:
a. A continuous supply of bitumen by local partner
b. Using the current buyer of bitumen within our network
c. Agreeing the location of the land next to a refinery and
Import/Export loading port

9. Product Design:

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10. Conclusion:

The establishment of a bitumen cold packing company in Oman presents a

promising business opportunity. With a growing market demand, strategic
location, and comprehensive financial and technical analysis, we project a
favorable return on investment. The projected payback period of 3.52 years
indicates a reasonable time frame for recovering the initial investment. We are
confident that with proper execution and efficient operations, our company will
thrive in the bitumen industry.

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