The Banking Executive Magazine - May 2026 Issue - New

COMFAR 4 Strengthening Sustainable Investment Decision-Making IN ARAB BANKS USING COMFAR 4 The global financial landscape is un- dergoing a profound transformation, characterized by rising economic un- certainty, geopolitical fragmentation, technological disruption, and accel- erating sustainability challenges. Ac- cording to the World Economic Forum’s Global Risks Report 2026, geoeconomic confrontation, eco- nomic volatility, debt sustainability concerns, and asset bubble risks are among the most significant threats to global financial stability. These risks directly affect banks, influencing credit quality, investment perform- ance, and long-term financial re- silience. At the same time, developing coun- tries face an annual sustainable de- velopment investment gap estimated at approximately $4 trillion, high- lighting the need for efficient capital allocation and high-quality project evaluation . In this evolving environment, the quality of feasibility studies has be- come an essential component of sound banking decision-making, risk management, and investment sus- tainability. ALIGNING FEASIBILITY ANALYSIS WITH SUSTAINABLE DEVELOPMENT ECONOMIC TRANSFORMATION Arab banks are playing an increas- ingly critical role in financing eco- nomic transformation across the region. As Arab economies acceler- ate their transition toward diversifi- cation, renewable energy, industrial development, and digital transforma- tion, financial institutions must evaluate complex investment oppor- tunities while managing financial risks and ensuring long-term sustain- ability. In this evolving environment, the quality and efficiency of feasibil- ity analysis have become essential to sound banking decision-making. In this evolving environment, robust feasibility analysis has become es- sential to strengthening investment decision-making and managing fi- nancial risk. The need for enhanced investment analysis capabilities is reinforced by recent global and regional assess- ments. According to the Arab Region SDG Index and Dashboards 2026, the Arab region has achieved an overall Sustainable Development Goal (SDG) score of 60.6, reflecting moderate progress but significant gaps in achieving sustainable devel- opment targets . This indicates that substantial investment is still re- quired across key sectors such as in- frastructure, renewable energy, water management, and industrial devel- opment. The report also highlights that approximately 85% of SDG in- dicators across the Arab region show major or significant challenges, par- ticularly in areas related to economic diversification, employment, and sustainable infrastructure. These find- ings underscore the strategic impor- tance of Arab banks in mobilizing capital efficiently and directing fi- nancing toward economically viable and sustainable projects Meanwhile, global evidence under- scores the importance of feasibility analysis in improving investment outcomes. Studies indicate that ap- proximately 25% of investment proj- ects fail due to deficiencies in feasibility studies, while more than 71% of stalled projects were imple- mented without proper feasibility as- sessment. These findings highlight the critical importance of structured feasibility analysis tools in reducing financial risk, improving investment success rates, and strengthening credit evaluation processes, particu- larly for banks financing large-scale infrastructure, industrial, and energy projects. For more than 4 decades, UNIDO’s Computer Model for Fea- sibility Analysis and Reporting – known globally as COMFAR and as the only United Nations-licensed ap- plication for investment and financial feasibility evaluation represents a standardized and credible methodol- ogy used to support investment deci- sion-making worldwide. COMFAR has helped institutions transform project ideas into bankable, invest- ment-ready proposals. With the launch of COMFAR 4, UNIDO intro- duces a new generation application web-based platform designed to sup- port public and private sectors, in- cluding the banking sector in navigating complex investment envi- ronments while aligning with sus- tainability and risk management priorities. At the same time, UNIDO’s Digital Investment Promotion Services (DIPS) platform highlights the critical role of digital tools and structured methodologies in enhancing invest- ment preparation, evaluation, and fi- nancing readiness. It also reinforces the need for market specific ap- proaches, as generalized FDI promo- tion strategies are no longer sufficient. Tailored strategies for GCC and Arab investors are essential to the BANKING EXECUTIVE 16 ISSUE 209 MAY 2026 by Arbana Gjoni / United Nations Industrial Development Organization