Hajj Committee Proposes Transforming Arbab Al-Tawaif Firms to Shareholder Companies

Muslim pilgrims pray around the holy Kaaba at the Grand Mosque ahead of the annual Hajj pilgrimage in Makkah on September 21, 2015. (Reuters)
Muslim pilgrims pray around the holy Kaaba at the Grand Mosque ahead of the annual Hajj pilgrimage in Makkah on September 21, 2015. (Reuters)
TT

Hajj Committee Proposes Transforming Arbab Al-Tawaif Firms to Shareholder Companies

Muslim pilgrims pray around the holy Kaaba at the Grand Mosque ahead of the annual Hajj pilgrimage in Makkah on September 21, 2015. (Reuters)
Muslim pilgrims pray around the holy Kaaba at the Grand Mosque ahead of the annual Hajj pilgrimage in Makkah on September 21, 2015. (Reuters)

Vice President of National Committee for Hajj and Umrah Abdullah Omar Kadi said that transforming Arbab Al-Tawaif Establishments to shareholder companies would enhance services provided to pilgrims and ensure shareholder rights.

This step would achieve social integration of beneficiaries and shareholders, Kadi added, noting that pilgrims would receive quality services and privileges.

He stressed that the committee’s role was no longer restricted to the Umrah and Hajj companies of internal pilgrims, but another special committee will be formed to cater to external pilgrims.

These firms will be partners in this decision, he affirmed.

Meanwhile, Hajj and Umrah Committee member Mansour Abu Khanjar spoke about the importance of developing the internal pilgrims sector.

He stressed the need for more flexibility when it comes to transferring visas and the lending system and shifting them to a completely electronic platform.

He also highlighted the role foreign companies have played, in cooperation with Saudi firms, in providing cooling services at pilgrims’ camps.

He added that the coming period will witness reinforcing the privacy of every pilgrim by providing them with their own private chambers, each boasting a television that would broadcast pilgrimage guides and emergency alerts.



S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
TT

S&P Expects Saudi Issuances to Continue Domestically, Internationally Driven by Vision 2030

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

S&P Global Ratings anticipates that Saudi issuers will continue to tap local and international capital markets to finance projects under Saudi Arabia’s Vision 2030. The agency expects debt levels to remain manageable, with private sector debt-to-GDP ratios staying below 100% over the next 12 to 24 months.

According to S&P’s report, “Saudi Capital Market Overview: Rising Issuance Levels Are Just the Start”, Saudi companies have dominated issuance activity in recent years. Over the past five years, Saudi entities, including government-related entities, have accounted for roughly two-thirds of non-governmental US dollar-denominated issuances. However, the report predicted that banks will play an increasingly significant role in the future.

The report noted that Saudi issuers have raised over $130 billion in US dollar-denominated issuances over the last five years. This adds to $144 billion raised domestically in Saudi riyals during the same period, driven by Vision 2030 initiatives.

While the government accounts for about 60% of these issuances, the Kingdom’s Vision 2030 has created expansive opportunities in the non-oil economy and banking system, paving the way for future growth, the report underlined.

S&P highlighted the development of Saudi Arabia’s mortgage-backed securities market as a key factor to watch over the next two years. As of the end of September 2024, Saudi banks held more than $175 billion in mortgage financing, most of which carried fixed interest rates but were funded through short-term resources, primarily local deposits.

With declining interest rates, some of these mortgages could re-enter circulation, enabling banks to sell them in the secondary market without incurring losses. This would allow banks to offload mortgage financing from their balance sheets, provided legal challenges surrounding the mortgage-backed securities issuance are resolved or mitigated sufficiently to attract local and international investor interest.

According to the report, developing the mortgage-backed securities market could significantly enhance banks’ financial capacity, enabling them to better support the implementation of Vision 2030. This could occur through existing infrastructure, such as the Saudi Real Estate Refinance Company, or via direct issuances in the capital markets.