Saudi Arabia’s Hajj Economies Prepare for 2021 Pilgrimage Season

Saudi Arabia’s Hajj and Umrah Ministry officially confirmed that the Hajj pilgrimage would be held in 2021, Asharq Al-Awsat
Saudi Arabia’s Hajj and Umrah Ministry officially confirmed that the Hajj pilgrimage would be held in 2021, Asharq Al-Awsat
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Saudi Arabia’s Hajj Economies Prepare for 2021 Pilgrimage Season

Saudi Arabia’s Hajj and Umrah Ministry officially confirmed that the Hajj pilgrimage would be held in 2021, Asharq Al-Awsat
Saudi Arabia’s Hajj and Umrah Ministry officially confirmed that the Hajj pilgrimage would be held in 2021, Asharq Al-Awsat

To optimize the experience of Muslim pilgrims visiting holy sites in Saudi Arabia this year’s Hajj season, local Hajj and Umrah guides have upped their preparation levels in the Kingdom.

On Sunday, the Hajj and Umrah Ministry officially confirmed that the Hajj pilgrimage would be held this year, but under “special conditions” to protect pilgrims against the spread of the coronavirus.

Even though the details of regulatory plans haven’t been announced yet, the decision to hold Hajj will certainly have a positive impact on Hajj-related industries like accommodation, transportation, and retail, local Hajj guides told Asharq Al-Awsat.

After a year-long pause brought about by the coronavirus pandemic, Hajj economies in Saudi Arabia are now on track to revitalization and recovery.

“The mere announcement made by the Hajj and Umrah Ministry sent a glimmer of hope to all Tawafa (Hajj and Umrah guide) institutions,” said Mohamed Maajini, an official guide at the National Tawafa Establishment for Pilgrims of Arabian Countries.

“It constitutes a starting point and a much-needed push for the gradual reviving of Tawafa institutions,” he told Asharq Al-Awsat.

The Hajj and Umrah conductor reaffirmed that Tawafa agencies in Saudi Arabia are “ready to serve any number of pilgrims and have had an early start on making arrangements for all potential scenarios.”

“Tawafa institutions have completed setting general plans that cover all aspects of the pilgrimage,” confirmed Maajini, adding that guides will be updated on the specifics, protocols, and regulatory systems after they are announced by authorities.

As for how hard the coronavirus hit Saudi Arabia’s Hajj and Umrah markets, Maajini emphasized that the Kingdom was successful in employing efficient policies to limit the damage.

“Undoubtedly, the pandemic has left the world in isolation and negatively impacted global economies, but Saudi Arabia managed to stay ahead of time in containing the pandemic and underpinning vulnerable private sector industries,” he said.

It is worth noting that optimism over Hajj 2021 season is not exclusive to guide agencies in the Kingdom. It extends to a host of Hajj commerce players.

“What was announced by the Hajj and Umrah Ministry constitutes good news for all sectors operating in the Hajj sector,” Saudi businessman Mahmoud Mughrabi told Asharq Al-Awsat.

Moreover, he reaffirmed that all Hajj entrepreneurs have total confidence and hope in authorities and Hajj crews reaching and implementing a clear and comprehensive vision that guarantees the safety of pilgrims.

Mughrabi predicted that the all-inclusive plan for Hajj 2021 would be disclosed soon, after Muslims finish celebrating Eid al-Fitr in mid-May.

On that note, Mughrabi asserted that present-day mobility in different areas of the Hajj sector serves the Saudi economy in general and the Hajj and Umrah markets in particular.

“There is mobilization in various fields to serve both the Saudi economy and all workers in Hajj specialized services,” he said.

He pointed out that Tawafa agents will help guide foreign pilgrims by coordinating with government missions and authorities tasked with organizing the Hajj season and safeguarding pilgrims.



Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.