Anyone searching for the cost of building an app in Saudi Arabia usually lands on development quotes, and each quote answers one question: how much will it cost to build? That figure matters, but it is only half of the equation. The question that decides the investment is whether the app will cover its costs, and when. That is the role of a feasibility study for a mobile app, an online platform or an AI tool, before the first line of code is written.
This article explains the stages Googan follows when preparing a feasibility study for a technology project, and why a development quote alone is not enough to decide.
Build cost and operating cost are two different numbers
- Technical set-up fees: paid once to turn the idea into a working product, such as design, development, testing and launch.
- Annual technical fees: recurring every year to keep the product running, such as hosting, technical subscriptions, maintenance and updates.
The study then adds costs that no development quote shows: establishment costs, general and administrative expenses, and team costs. Together they form the real investment cost list, compared against expected revenue.
Before cost: is there enough demand?
- Project scope, launch cities and geographic rollout.
- Market size estimate.
- Supply and demand in each target segment.
- Target customer analysis.
- Internal and external drivers of demand.
- Market gap analysis.
From idea to a scope that can be priced
- How the platform works: the user journey from sign-up to completed service.
- An initial concept of the main screens.
- Functional requirements.
- Scope of work (SOW), development phases and timelines.
- Testing period and user acceptance testing (UAT).
With these documents, development quotes become comparable on one basis.
Business model: where does revenue come from?
The strategic analysis uses PESTLE, Porter's industry attractiveness, VRIO, SWOT and the Business Model Canvas, leading to a launch and expansion plan.
The numbers that decide
- Annual revenue and costs under stated assumptions.
- Projected financial statements with notes.
- Financial and investment-valuation indicators.
- Break-even point.
- Sensitivity analysis: what happens if users are fewer than expected or costs rise.
Mobile app, online platform or AI tool?
The method is the same; the focus differs. A two-sided platform needs demand estimated on both sides. An AI tool may carry operating costs that vary with usage, so they must appear in annual technical fees and in the sensitivity analysis.
How Googan can help
Googan has prepared feasibility studies for the Saudi market since 1996, has had an investment presence in the Kingdom since 2013, holds ISO 9001:2015 certification, commercial registration 7036270002, and is based in Al-Masif, Riyadh. The study fee is set in the quotation according to project scope. To request a quotation, contact us on WhatsApp.
Note: a feasibility study is a decision tool and does not guarantee specific returns or the success of the app.
