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Kaaki to Asharq Al-Awsat: Makkah Poised to Become a Global Economic Hub

The Makkah Chamber of Commerce & Industry (MCCI) launches a strategy to develop Islam’s holiest city, Asharq Al-Awsat
The Makkah Chamber of Commerce & Industry (MCCI) launches a strategy to develop Islam’s holiest city, Asharq Al-Awsat
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Kaaki to Asharq Al-Awsat: Makkah Poised to Become a Global Economic Hub

The Makkah Chamber of Commerce & Industry (MCCI) launches a strategy to develop Islam’s holiest city, Asharq Al-Awsat
The Makkah Chamber of Commerce & Industry (MCCI) launches a strategy to develop Islam’s holiest city, Asharq Al-Awsat

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.

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UN Deputy Special Coordinator to Asharq Al-Awsat: Humanitarian Situation in Lebanon is ‘Catastrophic’

Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
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UN Deputy Special Coordinator to Asharq Al-Awsat: Humanitarian Situation in Lebanon is ‘Catastrophic’

Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)

One of the UN’s top humanitarian officials in Lebanon, Imran Riza, has warned that the situation will worsen if the conflict continues, calling for an immediate ceasefire between Israel and Hezbollah.

He stressed that the ongoing war is placing immense strain on both the UN and the Lebanese government, as over a million people have been displaced. He said current needs exceed $400 million, but only 12% of that amount has been raised so far.

Worsening Crisis

Riza, who is the UN Deputy Special Coordinator for Lebanon, UN Resident, and Humanitarian Coordinator for Lebanon, spoke to Asharq Al-Awsat. He described the past two weeks as “catastrophic” for civilians, with the crisis growing over the last year.

More than 600,000 people have been displaced and over a million affected, with 300,000 crossing the border, according to Riza.

Many of these people have been displaced more than once in search of safety. Riza emphasized that the war has severely impacted civilians, with more than a quarter of Lebanon's population affected.

The UN has been working to address the crisis, but Riza said resources are limited.

He stressed that the UN has been saying all year that it doesn’t have enough funds, even when there were only 110,000 displaced people.

Last week, the UN launched a $426 million appeal for urgent humanitarian aid, with 12% of the funding already secured.

Riza said more support is expected, with donor countries pledging additional help.

He also expressed gratitude for contributions from the Gulf Cooperation Council (GCC), which provided medical and relief supplies, and said the UN hopes to see more international assistance soon.

Working with the Government

The UN is working closely with the Lebanese government every day to provide shelter, food, healthcare, and water to those in need.

Cooperation with the government has been excellent, said Riza.

However, he acknowledged that the government’s capacity is weakened after five years of ongoing crises, which have also severely impacted the population.

People are less resilient than they were during the 2006 war, and the government and its institutions are weaker, affirmed Riza.

The UN is helping the government respond effectively, ensuring transparency and accountability, so that aid reaches those who need it, he added.

The UN is also collaborating with local and international NGOs that have gained experience from Lebanon’s recent crises, helping to ensure a more effective response. Shelters are also being monitored to prevent any abuse.

A Different Reality from 2006

The current situation in Lebanon is very different from the 2006 war. Politically, the country now has a caretaker government and no president, with much less international presence.

Back then, other countries were more involved, said Riza.

The 2006 war lasted only 33 days, but this conflict has dragged on for a year, he noted.

During recent visits to southern border areas, Riza said locals were asking when the war would end, as the situation has worsened significantly in the past two weeks.

Riza noted that, in the first week of the crisis, it was extremely difficult to respond, and even now, many displaced people remain without shelter.

The UN is working with the government to provide shelter, food, and healthcare, but it’s not easy, he noted.

Displacement Crisis

With winter approaching, Riza stressed the need to properly house displaced people, saying that people can’t be left without shelter.

There are also concerns over a lack of housing, clean water, and sanitation, as well as the risk of disease outbreaks. Despite these challenges, Riza praised the close cooperation between the UN, international organizations, and partners.

Many agencies are responding, he asserted.

Riza rejected any claims of discrimination between displaced groups, noting that both Lebanese and Syrians are currently staying in UNRWA schools. He added that talks with the government about sheltering displaced Syrians have been positive.

Riza also expressed concern about the school year and children’s education.

Prolonged Conflict

The United Nations sees no immediate solution to the humanitarian and military crisis in Lebanon, with Riza stressing that the solution must be political and diplomatic, but first, a ceasefire is needed.

While there is little optimism for an end to the conflict, Riza said, the UN is encouraged by the support from its partners, which helps the organization assist the displaced.

He mentioned the recent evacuation of 1,000 people from Ain Ebel and aid distribution in Tyre, emphasizing the need to ensure that they reach those in need.

Riza called on all sides to respect international and humanitarian laws, allowing safe access for aid workers.

He condemned violations, including the deaths of firefighters, health workers, civil defense staff, and UN personnel, adding that the toll on civilian and health infrastructure is growing.