The holy city of Makkah in Saudi Arabia enjoys a host of characteristics that qualify it for long-term investments, economic growth and the development of a sustainable future. Located west of the kingdom, Makkah offers big and diverse investment opportunities.
Vice-Chairperson of the Council of Saudi Chambers (CSC) and Chairperson of the Makkah Chamber of Commerce & Industry (MCCI) Hisham Kaaki, in an interview with Asharq Al-Awsat, reaffirmed that the metropolis is home to one of the kingdom’s promising permanent markets that is supported by a year-long influx of visitors.
There are plans for building 60 international hotels in Makkah to service an estimated 100 million visitors expected to visit the kingdom by 2030, Kaaki revealed, adding that investment opportunities are available across several fields including infrastructure development, education and healthcare.
Makkah's economy, according to Kaaki, was hardly hit by the coronavirus pandemic. Around 80% of the income of institutions in the city was sharply reduced.
The number of visitors that would usually flock to Makkah, which is considered Islam’s holiest city, during the religious seasons of Ramadan, Umrah and Hajj dropped significantly during the pandemic.
Nevertheless, meticulous planning and government support under the leadership of King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman will continue in helping fulfill the goal of transforming Makkah into a global economic hub.
MCCI’s Strategy
MCCI relies on 4 main axes to implement its strategy for achieving institutional excellence, realizing financial sustainability, and enhancing Makkah's position as a meeting place for business locally and globally.
The chamber’s strategy encompasses 40 diverse initiatives aimed at establishing practical frameworks needed for transformation, aligning performance with the objectives of Vision 2030, and harnessing private sector potential to create an attractive investment environment.
Transforming Makkah into a global attraction for minds and businesses lies at the heart of the strategy which also focuses on raising the level of local, national and regional economies. It chiefly aims to increase the size of the national economy, private sector and SME participation, foreign investment and the number of Hajj and Umrah pilgrims.
A Global Economic Hub
Kaaki went on to stress that Makkah, which receives a great deal of government attention, is ready to become a global economic hub. The city occupies a spiritual and holy status to Muslims worldwide and possesses a large economy.
MCCI, in cooperation with its partners, is persistently working to overcome difficulties and achieve economic prosperity.
In 2019, Makkah made over SR82 million in actual revenues.
On reaching sustainability, Kaaki said that many approaches have been adopted. They include a shift towards digitization.
During the pandemic, MCCI invested human and financial capital in promoting a digital transformation.
In the early days of lockdowns, the chamber held a series of virtual meetings and webinars. It launched an around-the-clock “live chat” service available to beneficiaries.
MCCI and Pandemic Upshot
The outbreak of the coronavirus pandemic drove MCCI to move its services, events and work onto e-platforms.
Kaaki pointed out that an e-portal for digital consultation was established for businesses.
MCCI also offers a comprehensive e-portal that includes affiliate services, economic opportunities, training, and jobs. Another platform is dedicated to displaying articles on the field of knowledge enrichment in the business industry.
Additionally, MCCI developed a digital training platform which is specialized in distance training and provides a number of online courses and diplomas.
The number of beneficiaries subscribed to the training platform has surpassed 8,000, Kaaki noted, adding that they have joined several programs that span across different fields.
On economic challenges inflicted by the pandemic on Makkah's economy, Kaaki expressed optimism towards the city overcoming them, saying that “there are many promising things that will be presented in the coming period.”
Acknowledging that Makkah is passing through unprecedented times, Kaaki called for solidarity and support for the city which registered some of the highest infection rates in the kingdom.
Kaaki, however, expressed confidence in the packages that were presented and that will be presented in the coming period to overcome difficulties.
Family Businesses
Kaaki underlined the importance of applying governance and controlling regulations for family businesses in Makkah, and Saudi Arabia in general.
Family businesses represent about 90% of the total companies operating in the kingdom and contribute about 60% to the GDP.
But the coronavirus pandemic had hit family businesses worldwide, with Kaaki estimating that around 15% of global family businesses had shut down. The Middle East was among the most impacted regions as droves of people lost their jobs and businesses.
Nevertheless, family companies have been able to continue operating under demanding circumstances and strenuous fluctuations, displaying outstanding flexibility.
For that reason, Kaaki said it was important to develop a corporate governance framework that addresses issues of risk management, crisis management and decision-making.
Made in Makkah
“We look forward to Makkah becoming an economic and industrial center,” said Kaaki, adding that the holy city is visited by millions of Muslims, pilgrims and delegations every year.
These millions, according to Kaaki, make up an entire market that is open to local and national industries and investment.
Kaaki also talked about how Makkah visitors are keen on purchasing local products because of the great spiritual value they attach to the holy city.
He stressed that the industrial sector has demonstrated a tremendous ability to deal with crises and meet demand. Food and pharmaceutical industries have provided an exceptional performance, Kaaki emphasized.
Work is underway to enhance the relative and competitive value of Makkah, Kaaki reaffirmed, adding that there will be focus on investment in industries related to Hajj and Umrah.
