MAKKAH: The Saudi Ministry of Hajj and Umrah has introduced seven key regulations for companies seeking to provide Hajj and Umrah services to international pilgrims. These new rules, published on the “Istitlaa” consultation platform, outline the requirements for obtaining a license, which will be valid for five years and renewable upon meeting the ministry’s criteria.
The new regulations mandate that service providers must be fully Saudi-owned, registered as either a sole proprietorship or a company. Additionally, companies must hold a commercial registration with a minimum capital of 500,000 Saudi riyals (approximately Rs. 37.5 million), specifically for serving Umrah pilgrims and visitors to Madinah.
Each company will be required to submit an unconditional final bank guarantee of at least 2 million Saudi riyals (Rs. 150 million) in favor of the Ministry of Hajj and Umrah. This guarantee must be issued by an approved local bank and remain valid throughout the license period. It will renew automatically and cannot be canceled without the ministry’s written approval.
Applicants must provide an approved operational plan detailing the markets in which they operate to avoid overlap with other companies. Additionally, companies must submit a declaration of financial and administrative independence, employ separate staff from other businesses, and provide audited financial statements. Detailed information about the company’s executives must also be submitted and updated whenever changes occur.
The ministry has stated that if any company violates these conditions, their license may be temporarily suspended until the issue is resolved within 30 days. If the violation is not rectified, the license could be permanently revoked.
The license will be automatically canceled if the owner of an individual establishment passes away, loses legal capacity, or if the company is liquidated or declared bankrupt. In such cases, the heirs or liquidators must inform the ministry within 30 days of the event.
The Minister of Hajj and Umrah has the authority to revoke a company’s license if it is found that the holder has transferred or leased the license, failed to operate the business within one year of obtaining the license, or if any essential licensing requirements are no longer met.
