Feasibility study for establishing a higher education institution for medical sciences, business administration and artificial intelligence in Sudan
Riyada University
The feasibility study proposes establishing a higher education institution for medical sciences, business administration and artificial intelligence in Sudan, to address the critical gap between supply and demand in Sudan, the region and the Gulf states for highly qualified professionals in the medical, business administration and technology fields. The study estimates the project's total cost at US$12,095,913, and the financial indicators show that the project is largely viable but will only begin generating profits after the sixth year.
- Sector
- Medical education, business administration and technology
- Location
- Sudan
- Project total investment cost
- $12,095,913
- Total required equity (all phases)
- $9,288,661
- Internal rate of return (IRR)
- 13.2%
- Net present value (NPV) at a 9% discount rate
- $2,417,845
- Cumulative cash flow (10 years)
- $17,085,304
Strengths of the Study — I. Market Study
- The market study, through data and figures, demonstrated the significant gap between supply and demand in Sudan, the region and the Gulf states in terms of the pressing need for highly qualified professionals in the medical, business administration and technology fields, particularly in artificial intelligence.
- The figures illustrate the critical gap in doctors, nurses, dentistry and medical laboratories, and also point to the growing demand in the region and the Gulf states for graduates with strong skills in business administration and technology, particularly artificial intelligence.
- Establishing an institution of this kind meets the long-term strategic objectives of economic growth and technological progress.
II. Technical Study
Based on the market study referred to above, the proposal for this higher education institution for medical sciences and technology in Sudan came about, aiming to deliver highly advanced education in medical sciences and business administration in addition to artificial intelligence.
The proposed educational institution will start operating early from leased facilities and will gradually expand into the most modern facilities in its field, in a space purpose-built to meet international standards, to fill the critical gap in higher education and strengthen educational capacity in Sudan, contributing to its economic recovery. (Note: the site area given in the source document appeared as a figure that was not legible due to a text-extraction fault, and has not been included here.)
Institutional Vision
"To be a leading regional hub in medical and technology education in Sudan, Africa and the Gulf, producing innovative, competitive and socially committed talent in healthcare, management and technology"
Economic Feasibility and Pricing Strategy
The economic feasibility of the proposed institute in Sudan rests on the ability to set prices competitively (below Gulf / international private-sector prices) while offering high-quality programmes. For medical/technology programmes, a fee strategy of US$5,000–21,000 per year may be viable, with tiered pricing for regional / affordable access. (Note: the price-range figures in the extracted document appear in reversed order, and the correct order may be US$5,000–21,000, so it has not been included among the numeric indicators.)
Strategic Risks and Risk Management
Competitive risks from existing local public and private universities and foreign branch campuses.
The proposed institute can serve as a regional education hub, supplying highly skilled professionals to these fast-growing markets by aligning its curriculum with demand for skilled professionals in healthcare and technology, and will contribute to both national development and regional integration.
- Differentiation through affordability, academic accreditation, a focus on a mix of medical, technology and business fields, and student recruitment.
- Accreditation and recognition
- Political and economic stability
- Affordability of education costs
Weaknesses of the Study
The high cost of the project ($12,095,913).
The technical aspects of the project represent a high investment cost:
- The academic model
- Faculties and programmes
- Administrative and support services
Key Administrative Units
- Academic Affairs
- Student Services
- Research and Innovation Office
- Information Technology Department
Infrastructure Requirements — Phase One (Leased Buildings, Years 2–3)
During the initial phase, the institute will operate from leased buildings to establish its presence and begin delivering academic programmes. The Phase One infrastructure will include the following key components:
- Lecture halls: 10 lecture halls, each with capacity for 200 to 300 students. These halls will be equipped with modern audio-visual equipment and comfortable seating arrangements to facilitate effective learning.
- Medical and technology laboratories: laboratories for medical subjects (anatomy, microbiology, pathology) and technology-focused courses (artificial intelligence). These laboratories will be equipped with the equipment necessary for practical learning and experimentation.
- Nursing simulation lab: equipped with mannequins and patient simulation devices to provide nursing students with hands-on training in patient care and emergency response.
- Computer labs: at least 100 high-performance workstations for artificial intelligence and related technology programmes. These labs will be essential for running software applications, simulation, and training in data science and AI algorithms.
- Dental training clinic: a clinic with 10–30 chairs for pre-clinical training and early exposure to clinical treatment, where dentistry students can practise under supervision.
- Library and digital centre: a library holding more than 10,000 volumes, including access to digital databases such as PubMed, IEEE and ScienceDirect, providing students with a wealth of academic resources.
Cost of the Leased Building and Land Acquisition Phase
The total cost of this phase is $2,007,503. Note that during the three years comprising this phase the project incurs losses as follows, respectively: ($243,418), ($243,418), ($417,581), and a cash-flow deficit in the first three years according to the study's cash-flow table as follows: ($110,258), ($186,548), ($360,710). (Note: the ordering of these three values across the years may have been affected by bidirectional text extraction, so we have not attributed them to specific years in the numeric indicators.)
Financing
Given its scale, the project cannot be implemented in a fragmented manner, and it must begin with all six faculties as set out in the technical study.
Phases 1 and 2 will be financed by the founders, while Phase 3 will be financed from student fees and completed by the founders. Provided the founders have the financial capacity shown in the following table, there is no problem.
Phase One: $2,007,503. Phase Two: $5,451,011. Final Phase: $1,830,147.
In addition to bearing the losses incurred in the project's first three years and the cash-flow deficit in years three, four and five.
Bank financing may not be available for a project of this size that incurs losses in three consecutive years from the start of implementation, and if available, it would only be granted against collateral and mortgages on onerous terms.
Financial Indicators
The project, at its current scale, is largely viable but will only begin generating profits after the sixth year. Its success depends on the founders' financial capacity to fund the project.
Sensitivity Analysis
The financial study's parameters represent the worst-case scenario. In addition, a detailed analysis was conducted of changes in operating revenue and total investment cost.
The financial study's indicators can withstand an increase of up to 30% in investment cost or a decrease of 25% in projected revenue while maintaining sound financial indicators.
Cost of the Leased Building and Land Acquisition Phase
| Item | Value ($) |
|---|---|
| Fixed Assets | $1,326,508 |
| Pre Operational Cost | $110,000 |
| Initial working Capital (Six Months) | $475,400 |
| Contingency 5% of above | $95,595 |
| Total | $2,007,503 |
Financing: Required Equity by Year (@ 3600 $/SDG)
| Year | Required Equity ($) | Amount in SDG |
|---|---|---|
| Y1 | $2,007,503 | 7,227,010,350 |
| Y2 | $2,725,505 | 9,811,819,634 |
| Y3 | $2,725,505 | 9,811,819,634 |
| Y4 | $1,830,147 | 6,588,530,507 |
| Total | $9,288,661 | 33,439,180,126 |
Financial Indicators of the Project
| Item | Value ($) | Value (SDG) |
|---|---|---|
| Project Total Investment Costs | $12,095,913 | 43,545,287,034 |
| Rented Building + Land Acquisition Phase — Required Equity Cash | $2,007,503 | 7,227,010,350 |
| Campus Part 1 Phase — Required Equity Cash | $5,451,011 | 19,623,639,269 |
| Building Part 2 Phase — Required Equity Cash | $1,830,147 | |
| Cumulative Cash Flow (10 Years) | $17,085,304 | 61,507,092,916 |
| IRR | 13.2% | |
| NPV (9%) | $2,417,845 | 8,704,240,800 |
Selected work
Industrial manufacturing (steel bars, tubes, screws & nails)
Konoz Complex for Steel Shaping & Production
Konoz Complex is a steel bars, tubes, screws and nails factory established in 2019 on a 64,000 square-metre site in the Safola industrial area of Khartoum. Novel Consultancy & Training assessed the capital required to build and operate the complex's three production plants and modelled five years of revenue, profit and cash flow. The study found the project generates a positive NPV, a high internal rate of return, and pays back its investment in roughly two years.
Higher education
Al Nahda College
Al Nahda College, established in 2014 in Khartoum, offers Medicine, Engineering, Humanitarian and Information Technology programs and is working toward full university recognition. Novel Consultancy & Training assessed phase one of the College's 2023-2027 strategic plan, covering the capital needed for new buildings, equipment and staff, and forecasting five years of revenue, profit, cash flow and breakeven enrollment. The study found the expansion is feasible, with a positive NPV and payback in a little over three years.
Education and training
Novel Consultancy & Training Co. Ltd.
Novel Consultancy & Training Co. Ltd. was established in 2014 with the vision of becoming a strategic Centre of Excellence in education, research, and training. Since 2015 the centre has trained and provided internationally accredited professional certificates in accounting and finance to over 500 participants from government and private commercial bodies, as an approved centre for ICBC, CIMC and Edexcel BTEC (Pearson). This study sets out the capital, revenue and profitability case for resuming normal operations: a total capital requirement of US$141,302 is projected to generate US$131,500 in first-year revenue and US$86,121 in net profit, growing 15% annually over a five-year plan, with a positive NPV of US$202,532, an IRR of 47%, and a payback period of two years and seven months.