Expected Recovery of Accommodation, Support Services Sector in Medinah, Makkah

FILE PHOTO: Pilgrims, keeping a safe social distance, perform Umrah at the Grand Mosque, in the holy city of Makkah, Saudi Arabia, October 4, 2020. (Reuters)
FILE PHOTO: Pilgrims, keeping a safe social distance, perform Umrah at the Grand Mosque, in the holy city of Makkah, Saudi Arabia, October 4, 2020. (Reuters)
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Expected Recovery of Accommodation, Support Services Sector in Medinah, Makkah

FILE PHOTO: Pilgrims, keeping a safe social distance, perform Umrah at the Grand Mosque, in the holy city of Makkah, Saudi Arabia, October 4, 2020. (Reuters)
FILE PHOTO: Pilgrims, keeping a safe social distance, perform Umrah at the Grand Mosque, in the holy city of Makkah, Saudi Arabia, October 4, 2020. (Reuters)

Experts have identified several factors that will contribute to the recovery of the accommodation and support services sector in the two holy cities of Makkah and Madinah with the coming month of Ramadan.

The operation of the Haramain Train is among the main factors that will contribute to the revitalization of travel to and from the two cities, in addition to the rapid vaccination campaign, with more than 3 million people inoculated so far, according to recent figures published by the Saudi Health Ministry.

Hotels in Makkah and Madinah constitute 75 percent of the total hotels operating in Saudi Arabia, with 1,151 licensed hotels in Makkah having around 450,000 rooms, and about 75,000 rooms in Madinah. These businesses are greatly relied on to revive other economic sectors, especially in light of the recession that was caused by the total and partial lockdown in the Kingdom.

According to experts, transportation, restaurants, and retail outlets will see some improvement in the two cities during the holy month of Ramadan, as occupancy rates are expected to increase and reach their peak in the last ten days of the month.

This optimism comes a few days after the Saudi government presented a package of initiatives to support investors and economic establishments operating in the Hajj and Umrah sector.
Economic Expert Marwan Al-Sharif noted that the operation of the Haramain train would constitute an important factor in reviving the economy in the two cities, with the increase in the number of pilgrims.

He also pointed to the importance of precautionary measures that the train administration would take to ensure the safety of passengers and to prevent the spread of the virus.



Gold Prices Climb on Safe-Haven Demand; US Payrolls Data in Focus

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Prices Climb on Safe-Haven Demand; US Payrolls Data in Focus

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices climbed on Friday, supported by safe-haven demand arising from the Middle East conflict, while spotlight shifted towards US payrolls report to gauge the trajectory of the Federal Reserve's policy path.
Spot gold was up 0.3% at $2,662.50 per ounce, as of 0325 GMT, after climbing to an all-time high of $2,685.42 on Sept. 26. Bullion has gained 0.2 for the week.
US gold futures edged 0.1% higher to $2,682.10.
The dollar eased 0.1%, pulling back from over a one-month high, making greenback-priced bullion less expensive for other currency holders, reported Reuters.
Geopolitical tensions, particularly concerning Israel and Iran, are supporting gold prices and unless these risks subside, prices are likely to remain near record levels, said Ajay Kedia, director at Kedia Commodities, Mumbai.
The US is discussing strikes on Iran's oil facilities as retaliation for Tehran's missile attack on Israel, President Joe Biden said, while Israel's military hit Beirut with new air strikes in its battle against Lebanese armed group Hezbollah.
Bullion is considered a safe investment during times of political and financial uncertainty, and thrives in a low-rate environment.
The US nonfarm payroll data is due at 1230 GMT. New York Fed President John Williams and Chicago Fed President Austan are also scheduled to speak later in the day.
If the NFP report comes in strong, it will be positive for the dollar and then gold prices will see some profit-booking, Kedia added.
Traders see a 69% chance of a 25-basis-point Fed rate cut in November, according to CME FedWatch Tool.
BMI said in a note it expects gold prices to trade within the range of $2,500 to $2,800 in the coming months.
Spot silver rose 0.4% to $32.17 per ounce and has gained about 1.8% so far this week.
Platinum climbed 1.1% to $1,001.79 and palladium advanced 1.4% to $1,013.46.