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.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.