Ramadan 2021 Sets Stage for Recovery of Hajj, Umrah Economies

Experts are predicting significant recovery for Hajj and Umrah businesses during Ramadan 2021, Asharq Al-Awsat
Experts are predicting significant recovery for Hajj and Umrah businesses during Ramadan 2021, Asharq Al-Awsat
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Ramadan 2021 Sets Stage for Recovery of Hajj, Umrah Economies

Experts are predicting significant recovery for Hajj and Umrah businesses during Ramadan 2021, Asharq Al-Awsat
Experts are predicting significant recovery for Hajj and Umrah businesses during Ramadan 2021, Asharq Al-Awsat

A little over a year after the coronavirus pandemic having hit markets around the world, signs of recovery are on the horizon for pilgrimage-centered economies in the Saudi cities of Makkah and Medina.

Experts are predicting a 40% recovery for Hajj and Umrah businesses during this year’s Ramadan season, which will last from mid-April to mid-May.

The number of foreign pilgrims expected to arrive in the Kingdom, which is home to Islam’s holiest sites, has increased substantially in 2021, compared to 2020.

Umrah is an Islamic pilgrimage to Makkah and Medina undertaken any time of the year. The rite attracted 19 million people in 2019.

Saudi Arabia halted the pilgrimage at the start of the pandemic in March 2020 but restarted it in limited numbers later in October.

“Although there are many precautionary measures that will limit the number of pilgrims gathering at holy sites, this Ramadan represents a vital transitional stage and tests how relevant sectors can gradually, but safely, return to working in full capacity,” said Muhammad Burhan, an active council member at the Mecca Chamber of Commerce & Industry (MCCI).

Burhan also noted that recovery in Hajj and Umrah markets is directly proportional to the rate of vaccinations introduced to potential pilgrims worldwide.

While Ramadan will slowly restore market activity in Makkah and Medina to its pre-pandemic rates, Burhan noted that the road towards full recovery will be revealed during the 2021 Hajj season, which starts in July.

Burhan also revealed that placing the pandemic under control and countries vaccinating their citizens will lead to a breakthrough that will inspire Muslims worldwide to make pilgrimage to holy sites in Saudi Arabia.

It is worth noting that the Kingdom launched its vaccine campaign in December and has administered more than four million doses so far.

More than 400 vaccination centers have opened since the nationwide campaign began with citizens and residents able to register for inoculations through the ministry’s Sehhaty app.



Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
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Lebanon Bonds Rally to Fresh Two-year High on Ceasefire Hopes

A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir

Lebanon's deeply distressed sovereign dollar bonds hit a fresh two-year high on Tuesday as investors bet that a potential ceasefire with Israel could improve the country's prospects.

The bonds, which are still trading below 10 cents on the dollar, have gained more than 3% this week. The 2031 maturity was biding at 9.3 cents on the dollar, its highest since May 2022, according to Reuters.

"Some investors are mulling if it is a right time to buy, since a ceasefire is the first step needed to at some point in time restructure bonds," said Bruno Gennari, emerging markets strategist with KNG Securities International.

Israel's cabinet is expected to convene on Tuesday to discuss, and likely approve, a US plan for a ceasefire with the Iran-backed Hezbollah, a senior Israeli official said.

Israeli airstrikes, which continued on Tuesday, have decimated Lebanon's infrastructure and killed thousands.

But the counterintuitive rally, the second since Israel began bombing the country in September, was driven by bets that the deal could jolt Lebanon's fractured political system and revive efforts to pull the country out of default.