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DUBAI: Three years after the COVID-19 pandemic forced Saudi Arabia to impose strict travel restrictions, this year’s Hajj has given a palpable boost to the regional economy, with an estimated 1.6 million Muslims from around the world converging on Islam’s holiest sites.
The annual pilgrimage began on Sunday with the ritual of Tawaf Al-Qudum, when pilgrims dressed in white robes walk in a circle around the Kaaba, the stone structure at the center of Masjid Al-Haram, or the Grand Mosque, the most important mosque and holiest site in Islam.
With pandemic restrictions imposed in 2020 fully lifted, a very large number of people were able to participate in Hajj this year, creating increased business opportunities for travel agencies, airlines and the hospitality industry in the Kingdom and the wider Gulf region.
The number of pilgrims is significantly higher this year compared with the period during the pandemic. Only 10,000 people were permitted to participate in 2020, and about 59,000 in 2021, because of social-distancing rules.
Last year capacity was greatly increased but still capped at 1 million pilgrims. During that time authorities also imposed an age cap of 65 to protect older people, who were considered more vulnerable to the most severe symptoms associated with COVID-19.
Now, thanks to the success of the vaccines developed to combat the coronavirus and the lifting of travel bans and other restrictions, the annual pilgrimage is essentially back to normal and the Hajj economy is enjoying something of a post-pandemic rebound.
Through the combined efforts of the Kingdom’s flag carrier, Saudia, and budget airline flyadeal, more than 600,000 pilgrims were transported from domestic terminals to Hajj sites, Saudia Group said.
The firm, which also operates Saudia Private Aviation in addition to Saudia and flyadeal, said it provided more than 1.2 million seats on its fleet of 164 aircraft, transporting pilgrims to and from more than 100 regular and 14 seasonal destinations, including Jeddah, Riyadh, Dammam, Madinah, Taif and Yanbu.
Just before Eid Al-Adha, the UAE’s flag carrier, Emirates, also added extra flights to cater to an increase in travelers. Ten flights to and from Jeddah, all operated using Boeing 777 aircraft, were added to accommodate Hajj pilgrims until July 7.
These extra Hajj flights were in addition to Emirates’ existing scheduled services to Saudi Arabia and were available to all travelers holding a valid Hajj visa. All passengers over the age of 12 were required to be vaccinated against COVID-19.
Emirates said there had been an increase in bookings for Hajj travel from Pakistan, India, Bangladesh, Indonesia, Thailand, Senegal, Ivory Coast, Mauritius and South Africa. The airline also added 34 flights to popular vacation destinations during the six-day Eid Al-Adha holiday.
Meanwhile, hotels in Makkah were fully booked as hundreds of thousands of Muslims descended on the holy city for Hajj.
“The hotel occupancy rates in Makkah have reached 100 percent, such as at the Novotel Thakher Makkah Hotel,” Abdul Aziz Al-Aboudi, the CEO of Thakher Development Company, a real estate firm that focuses on the hospitality sector, told Arab News.
“This substantial increase in occupancy comes in contrast to the 80 percent rate observed during the last Ramadan.”
In 2022, the occupancy rate was 60 percent, he added.
According to global property consultancy CBRE, occupancy levels in Makkah and Madinah increased by 21.2 percent and 18.5 percent respectively during the first quarter of 2023 compared with the same period the previous year. It attributed this increase to the lifting of travel restrictions and the beginning of Ramadan.
Al-Aboudi said the increase in visitor numbers had generated new business opportunities for the construction and real estate industries. His own company recently opened the Park Inn by Radisson and has obtained the necessary Hajj license for its operation, he added.
The annual pilgrimage is also a source of income for smaller businesses, including those who provide lodgings, transport and gifts. The increased footfall this year has meant higher prices.
10,000 Pilgrims permitted to perform Hajj under pandemic rules in 2020.
59,000 Number of pilgrims permitted in 2021 after easing of travel bans.
1 million Cap on the number of pilgrims performing Hajj in 2022.
1.6 million Estimated turnout for the Hajj pilgrimage in 2023.
According to official data for 2019, the Kingdom generated approximately $12 billion in income from the 2.5 million pilgrims who came to Makkah and Madinah for Hajj that year, and the 19 million who visited for Umrah, another Islamic pilgrimage that can be undertaken at any time of the year.
“Religious tourism is the backbone of Saudi Arabia’s tourism and it will play a wider role in the future as well,” Turab Saleem, head of hospitality, tourism and leisure consultancy at Knight Frank, told Arab News.
“Madinah is increasing its inventory from 18,000 hotel rooms at present to 125,000 by 2030. Makkah as well is increasing its occupancy. Makkah will have more rooms than any other city in the entire Middle East, including Dubai. Both Makkah and Madinah will also play a key role in elevating religious tourism to a new level.”
Hajj, underlines Saleem, plays a key role in Saudi Arabia’s tourism market.
He also points out how the economy for an increase in hotel rooms is not as challenging is the need to enhance the infrastructure to cater to the increase in Hajj pilgrims and expansion this year of the Hajj economy.
“Saudi is also observing how religious tourism can convert into leisure tourism,” he added.
“If someone or a family comes for a short tour then they can also take a trip to the Red Sea, AlUla or Riyadh.”
Airlines will also play a big role, adds Saleem. The new airline Saudi Arabia is launching, Riyadh Air will travel to over 212 destinations globally.
“It will do wonders for the country in terms of tourism, both religious and leisure,” he said.
According to TV news channel Al Arabiya, in the weeks prior to Eid Al-Adha, Saudi authorities unveiled their largest-ever operational plan for Hajj season, for which they employed a record-breaking 14,000 staff and more than 8,000 volunteers, who were deployed on the ground to provide assistance for pilgrims.
Abdulrahman Al-Sudais, president of the General Presidency for the Affairs of the Two Holy Mosques, said: “The operational plan for this year’s Hajj season is the largest in the history of the presidency, after the end of the coronavirus pandemic and the announcement of the return of Hajj pilgrims in the millions, as per an integrated system of services prepared by the wise leadership.”
Since Vision 2030, the Kingdom’s development and diversification plan, was launched by Crown Prince Mohammed bin Salman in 2016, Saudi authorities have spent billions of dollars on efforts to make Hajj, the world’s biggest religious gathering, more secure, more accessible, and an easier and more streamlined experience.
Another aim of Vision 2030 is to increase Hajj and Umrah capacity to 30 million pilgrims each year, to the benefit not only of the local economy but to international businesses operating in Saudi Arabia.
Performing Hajj can cost upward of $5,000 a person. It is one of the Five Pillars of Islam and every Muslim who is physically able and can afford it is obliged to participate at least once in their life.
RIYADH: State-owned Saudia, formerly Saudi Arabian Airlines, announced on Thursday that it would allocate over 7.4 million seats to domestic and international flights in July and August, a 10 percent increase over the same period last year.
According to a press statement, the national carrier will operate over 32,400 flights during this period, up 4 percent from the same time last year.
These measures aim to meet high demand during peak seasons and ensure smooth operations, efficient reservations for scheduled and seasonal destinations, and streamlined airport processes, the statement said.
The airline will provide over 4.2 million seats on its international routes, a 16 percent rise over July and August last year.
It will also introduce over 14,800 flights during the period, a 15 percent climb over last year.
The statement added that over 3.2 million seats will be available on domestic routes through 17,600 flights.
Captain Ibrahim Koshy, CEO of SAUDIA, emphasized the airline’s extensive experience managing operations throughout the year, especially during peak seasons.
The plan includes increasing flights and seat capacity and introducing seasonal destinations to meet guests’ needs while providing excellent services.
The airline has implemented comprehensive procedures and prepared the necessary facilities to ensure a successful summer season and Hajj pilgrimage.
The company relies on its young fleet and dedicated team from Saudia Aerospace Engineering Industries to maintain on-time aircraft performance.
Earlier this year, Saudia Group announced the addition of 25 new international destinations, expanding its network to over 100 destinations.
This expansion aims to give travelers more options and connect the world with the Kingdom. As part of the global SkyTeam alliance, guests can access 1,000 destinations in 170 countries and enjoy over 790 first-class and business-class lounges worldwide.
RIYADH: A Saudi delegation of top ministers, government officials and business leaders will take part at the UN High-level Political Forum next week as representatives from over 100 countries gather in New York to assess the progress of the Sustainable Development Goals.
The forum will be held from July 10-19 and focus on accelerating the recovery from the coronavirus disease and fully implementing the 2030 Agenda for Sustainable Development, aimed at ending poverty in all forms.
It will discuss the effective and inclusive recovery measures to address the impacts of the COVID-19 pandemic on the SDGs and explore actionable policy guidance for the full implementation of the 2030 agenda and the SDGs at all levels, according to its website.
Saudi Minister of Economy and Planning Faisal Alibrahim will lead the delegation, comprising representatives from 22 government entities, private sector companies and nonprofit organizations.
According to a press statement, Saudi Arabia will submit its second Voluntary National Review report on progress in its commitment to SDGs at the forum.
The VNR is a mechanism established by the UN for countries to voluntarily report on their progress in implementing the SDGs.
During the VNR, countries are expected to share their experiences, including successes, challenges and lessons learned, to accelerate the implementation of the 2030 Agenda.
The Saudi delegation will also include Minister of Energy Prince Abdulaziz bin Salman, Minister of Foreign Affairs Prince Faisal bin Farhan, Minister of Environment, Water and Agriculture Abdulrahman Al-Fadley and Minister of Tourism Ahmed Al-Khateeb.
Launched in 2015, the event will host panel discussions and exhibitions of various Saudi entities, including the Public Investment Fund, the Saudi Arabian Oil Co., Saudi Basic Industries Corp. and NEOM.
The Kingdom has been participating in the event since 2018. It will share its experiences and achievements in sustainable development, including various efforts it takes to achieve its net-zero target of 2060.
Achieving sustainability is a key agenda in Saudi Arabia’s Vision 2030 goals, as the Kingdom aims to increase its domestic generation capacity from renewable energy to 50 percent by the end of this decade.
RIYADH: Saudi Arabia’s King Abdullah Petroleum Studies and Research Center received two awards from the secretariat of the Organization of the Petroleum Exporting Countries in recognition of its work on energy issues.
KAPSARC received the “Best Energy Research Institute Award” during the 8th OPEC International Seminar held in Vienna.
It also picked up the “OPEC Award for the Best Energy Research Paper” for its analysis of the stability of the oil market.
The awards recognize researchers who have made exceptional contributions to advancing knowledge in the energy industry, and in complimenting the institution OPEC Secretary-General Haitham Al-Ghais said: “The Center and the research paper’s authors are fully deserving of these two awards against some extremely stiff competition.”
“KAPSARC is today a globally renowned center of research excellence for energy and sustainability issues, and a partner for many other research institutes and policy organizations worldwide.”
He added: “It is the embodiment of high quality, innovative, collaborative and objective analysis aimed at finding solutions to our global energy challenges.”
KAPSARC President Fahad Alajlan said his center worked hard to combine industry and academic expertise with a Middle Eastern perspective to tackle global energy and sustainability challenges
He added: “These accolades highlight our position as an advisory think tank that provides evidence-based research to the international community and policy advice for Saudi decision makers.”
In June, KAPSARC saw its position in the global discourse around global ecological governance grow after the UN granted it a key role in its environmental activities.
The think tank now participates in global energy, climate and environment dialogues after being handed a place in the UN Environment Program.
Building on its accreditation by the UN Framework Convention on Climate Change, KAPSARC’s new status means it can deliver evidence-based reporting and policy recommendations, particularly in this crucial phase of climate change conversations.
KAPSARC has already embraced its commitment to the UNEP by participating in the second session of the Intergovernmental Negotiating Committee in Paris from May 29 to June 2.
The discussion focused on developing an international framework to address plastic pollution, and KAPSARC highlighted the value of a circular plastic economy, including reduction, reuse, recycling and removal strategies.
RIYADH: Affirming its commitment to supporting the fintech sector, the Saudi Central Bank has granted buy-now-pay-later platform Tamara a permit to pursue postpaid payment activity.
With this move, there are now four authorized companies offering BNPL solutions, accelerating the Kingdom’s plans to become a regional fintech hub.
The bank, also known as SAMA, is expecting to draw a new group of investors and companies to Saudi Arabia that can bring added value to the sector and the economy.
The central bank is also working on using technology in financial services to support the Kingdom’s broader goals as it pushes ahead with the Vision 2030 economic diversification strategy.
Under the Ministry of Finance’s national fintech strategy, the number of firms in the sector is expected to increase from 82 in 2022 to 230 by 2025.
The plan also seeks to increase the fintech sector’s contribution to the gross domestic product to SR4.5 billion ($1.2 billion) and create nearly 6,000 jobs by 2025, besides increasing the share of digital transactions to 70 percent of all financial dealings.In May,
SAMA granted permits to Spotii and Madfu to provide consumer finance through the BNPL platforms, which will also attract a new segment of investors and value-added firms to achieve more efficient operations.
A permit was also given to MIS Forward in March to implement a BNPL solution, allowing customers to make purchases from merchants without having to pay term-financing fees.
Speaking to Arab News in July last year, SAMA’s Deputy Governor for Development and Technology Ziad Al-Yousef said that the bank is planning to make Saudi Arabia a regional financial technology hub as part of its strategy to implement the Financial Sector Development Program envisaged in the Kingdom’s Vision 2030 blueprint.
He added that the central bank is developing regulations to address new business models to assist and guide entrepreneurs in the payments, investments and financing sector.
“We have issued 11 new regulations in the last two years to support new fintech ideas and business models. This is a continuous journey, and we are going to accelerate this now with the approval of the national fintech strategy that is now part of vision 2030,” Al-Yousef said at the time.
RIYADH: Egyptian President Abdel Fattah El-Sisi has approved a $307.68 million loan from the Japanese International Cooperation Agency to implement the first phase of Cairo Metro’s fourth line, according to the country’s State Information Service.
The decree was published in the Official Gazette on Thursday.
The agreement was signed on Dec. 26, 2022, and the parliament approved the loan agreement in April 2023.
According to JICA, the loan will be repaid at a 0.1 percent annual interest rate over 30 years with a 10-year grace period.
The first phase of the fourth line will stretch over 19 km and include 16 stations, connecting Cairo’s downtown district to Giza Pyramids and the Grand Egyptian Museum, the press statement added.
The stretch is scheduled to start operating in February 2028.