Forest currently have four loan players in their squad and Davies is reluctant to bring in new faces for the sake of it.
Davies told the Nottingham Evening Post: "[Al Hasawi] has made it clear that, if we need loan signings, they are there for us, they are available.
"But I've made it clear I want to assess the team first.
"Let me see if we can win football matches without taking for taking's sake. The money is there, the option is there, but it is not about that. It is about needs must."
Forest face Bolton Wanderers in the Championship on Saturday afternoon.