Saudi Arabia has announced a number of incentive initiatives aimed at limiting the financial and economic impacts of the global Covid-19 pandemic on businesses linked to the Hajj and Umrah sectors in the kingdom.
Six measures have been approved by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, designed to support those most impacted in the sectors, according to a report by the state-run Saudi News Agency.
This includes exempting accommodation facilities based in Makkah and Madinah from annual fees levied on licenses for municipal commercial activities for one year. Private sector enterprises operating in the Hajj and Umrah sectors will also be exempt from paying fees imposed on employed expatriates for a period of six months.
Renewing Ministry of Tourism licenses for accommodation facilities in Makkah and Madinah will be free for a year, which can be extended; while the collection of residency (Iqama) renewal fees for expatriates working in activities related to the Hajj and Umrah sector will be postponed for six months, with the amount to be paid in instalments over one year.
The validity of traffic licenses for buses working with transport pilgrims facilities will be extended for one year and will be free of charge. And finally, the collection of customs duties on new buses scheduled to operate during the forthcoming Hajj season will be postponed for three months, with the amount to be paid in instalments over four months, starting from the due date.
Only up to 10,000 Muslims took part in the Hajj last year, a far cry from the 2.5 million who took part in the five-day annual pilgrimage in 2019. It was the smallest in modern history as Saudi authorities sought to prevent a coronavirus outbreak.
While Minister of Hajj and Umrah, Muhammad Saleh Benten announced last month that Saudi Arabia had received around 100,000 pilgrims from abroad after the resumption of Umrah services for foreign pilgrims since November 1, last year.
He added at the time that the ministry was working on operational plans to welcome the month of Ramadan and currently studying with the concerned authorities the developments related to the next Hajj season.
The Saudi Government has launched more than 150 initiatives, worth over SR180 billion, aimed at addressing the repercussions of the Covid-19 pandemic and mitigating its effects on individuals, the private sector and investors.