Signing of a memorandum of understanding between Assas Company and the Indonesian Hajj Fund in Mecca
Strategic partnership to enhance the Hajj and Umrah sector
In a strategic move reflecting the depth of bilateral relations between the Kingdom of Saudi Arabia and the Republic of Indonesia, Assas Company signed a significant memorandum of understanding with the Indonesian Hajj Fund (BPKH), the official body responsible for managing and investing Hajj funds in Indonesia. This signing took place during the activities of the “Markaz Al-Balad Al-Amin” event in Makkah, a leading platform that brings together prominent leaders and investors to foster effective partnerships in the Hajj and Umrah sectors.
The signing ceremony for the memorandum of understanding was held in the presence of His Excellency the Mayor of the Holy City of Mecca, Mr. Musaed Al-Dawood. Representing Assas Company at the event was Mr. Ahmed Al-Qahtani, Group CEO, while the Indonesian Hajj Fund (BPKH) was represented by Dr. Indra Gunawan, Executive Board Member and Head of Investment. Several senior officials and representatives from both entities were also in attendance.
General context and historical background of cooperation
This agreement comes against a backdrop of strong historical and economic ties between Riyadh and Jakarta. The Republic of Indonesia is home to the world's largest Muslim population and is the leading country in terms of the number of pilgrims performing Hajj and Umrah annually. The Indonesian government, through the BPKH Fund, which manages billions of dollars in pilgrim savings, has long sought safe and profitable investment channels that comply with Islamic law. In turn, the Kingdom welcomes high-quality foreign investments that serve the pilgrims, making Makkah a fertile and attractive environment for such strategic partnerships.
Partnership objectives and details of the memorandum of understanding
The memorandum of understanding primarily aims to explore and develop investment partnership opportunities in Makkah. Joint efforts will focus on launching Sharia-compliant investment projects that seek to achieve sustainable financial returns. The collaboration also places great emphasis on initiatives that directly contribute to improving and enhancing the experience of pilgrims and expanding the capacity of accommodation and service facilities. This aligns perfectly with the goals of the Kingdom's Vision 2030, which aims to host 30 million Umrah pilgrims annually and strengthen the Kingdom's position as an attractive global investment destination.
In this context, Mr. Abdullah Al-Majed, Chairman of the Board of Directors of “Asas” Company, stated: “This memorandum represents an important and vital step in strengthening Saudi-Indonesian cooperation in the Hajj and Umrah sector. Through our partnership with the (BPKH) Fund, we strive to develop Sharia-compliant investment assets that contribute to attracting more investments to the Kingdom, serve the pilgrims, and achieve sustainable economic value in the long term.”.
For his part, Dr. Indra Gunawan, Executive Board Member and Chief Investment Officer of BPKH, affirmed: “This partnership supports the Fund’s strategy of investing prudently in Sharia-compliant Islamic products within the Kingdom of Saudi Arabia. This approach not only delivers competitive returns but also contributes to improving the quality of services provided to Indonesian pilgrims. This investment aligns with our new strategy, which focuses on a stable and sustainable investment framework, and we look forward to a fruitful and long-term collaboration with Assas Company.”.
The importance and expected impact of the partnership
Domestically, this partnership is expected to attract foreign direct investment to the Makkah economy, creating new jobs and supporting the construction, hospitality, and logistics sectors. Regionally and internationally, this alliance represents a model for economic cooperation among Islamic countries, linking foreign Islamic capital with investment opportunities in the holiest of places.
In conclusion, this memorandum comes to crown the ambitious strategy of “Asas” Company to expand its network of international partnerships, and attract strategic investments that would develop quality projects that support the rapid growth in the Hajj and Umrah sector, and improve the quality of services provided to millions of Muslims heading to Makkah.
