Continuous efforts to improve services for pilgrims
In a strategic move aimed at enhancing services for pilgrims, the Ministry of Hajj and Umrah has unveiled a draft amendment to the executive regulations governing service providers for pilgrims from abroad. This initiative reflects the Kingdom of Saudi Arabia's longstanding commitment to facilitating the Hajj and Umrah pilgrimages, aligning directly with the objectives of the "Guests of God Service Program," a key component of the Kingdom's Vision 2030. This program aims to transform the Hajj and Umrah experience, ultimately hosting 30 million pilgrims annually, while providing the highest quality services that reflect the wise leadership's profound care for the Two Holy Mosques and their visitors.
Localization of leadership positions in Hajj hospitality companies
The new draft regulations establish a decisive principle: restricting leadership positions and board memberships in Hajj hospitality companies exclusively to Saudi citizens. This includes executive directors and all those holding sensitive positions. To ensure compliance, the regulations stipulate the invalidity of any sale or trading of these companies' shares to non-Saudis in any form. Furthermore, they require existing foreign shareholders to exit their positions by selling their shares to their respective subsidiaries at fair market value.
Regarding the death of a non-Saudi shareholder, the amendments clarify that Saudi heirs inherit their shares as normal, while non-Saudi heirs have the option of selling their shares to Saudi citizens or to the company in question. If the foreign shareholder has no heirs, the company will dispose of their shares in accordance with the regulations in force in the Kingdom.
Governance and classification of services to ensure quality
The regulations clarified the Ministry of Hajj and Umrah's responsibility for full oversight of service providers, including licensing, training their staff, and conducting periodic performance evaluations and measuring pilgrim satisfaction. The scope of service providers' authority was defined within three main categories:
- Providing basic services such as housing, food, and transportation.
- Meet and greet services at land, sea and air ports.
- Support services for basic service companies outside the Holy Capital.
The ministry also indicated the issuance of a qualitative and quantitative classification of services, which includes basic standards, contracting and pricing mechanisms, and the components of service packages, in order to ensure the highest levels of quality and transparency.
Strict licensing requirements and rapid intervention
To obtain a license, the regulations stipulated that the establishment must be wholly Saudi-owned, possess a valid commercial registration, have the necessary operational capabilities, and not have had a previous final license revoked. Operating the service in the Holy Sites was prohibited without obtaining seasonal approval based on operational capacity. Companies were required to submit license renewal applications at least 60 days before their expiration, along with paying all fines and fees.
To ensure the comfort of pilgrims, the regulations grant the Ministry the right to intervene swiftly in the event of any service provider's failure, allowing for the immediate assignment of a replacement and the recovery of costs from the offending company through the liquidation of its bank guarantee. Furthermore, the formation of an independent five-member committee was announced to review violations and impose deterrent penalties, which may include suspending or revoking the license if a service provider fails to operate for two consecutive seasons or three non-consecutive seasons without a valid excuse.
Expected economic and regulatory impact
This regulatory approach carries significant economic and organizational dimensions. Domestically, restricting leadership to Saudis will empower national talent, create new leadership opportunities, and ensure that economic returns remain within the national economy. Regionally and internationally, this rigorous governance and exclusive reliance on approved electronic contracting platforms will enhance the confidence of pilgrims from abroad, eliminate randomness, and guarantee a safe and accessible spiritual experience.
The draft concluded by allowing the establishment of one or more coordinating councils for providers of services to pilgrims from abroad to improve performance, provided that the regulation is effective from the date of its approval to replace all previous regulations, thus establishing a new phase of institutional excellence in the Hajj and Umrah sector.
