The United Arab Emirates has become a major international center of business activity and established itself at the heart of major trade routes between the East and the West. Many new companies were being floated and projects initiated by existing companies as a part of related or unrelated diversification. However, due to the global economic crisis and the crisis of confidence that has emanated, liquidity has dried up. Many project sponsors are now finding it difficult to bring the requisite share of their equity funding in the project as originally envisaged in the funding plan which ultimately results into cost and time overruns, thereby having negative impact on project viability. It becomes imperative for banks, financial institutions and equity investors to carry out an exhaustive credit appraisal of these projects prior to funding.
At D&B we understand the nuances of such projects is vital for both the project sponsors and the banks/funding agencies. Based on its experience in carrying out Project Appraisal Services, D&B has developed an assessment methodology and process to evaluate projects. The methodology achieves a fine balance between information availability and the comprehensiveness of the risk factors to viability in ascertaining the project quality.