The Economics of Hajj International Hajj Conference 27

The Economics of Hajj International Hajj Conference 27 October 2020 Mohamed Hedi Mejai Director of Investments

Challenges and Opportunities Expansion of Haramain Challenges Crowd Management Public Health Challenges Expansion of Hotel capacities Language Barrier Development of apps and tools to overcome language and awareness barrier Awareness Raising Service Offering Transportation Accommodation Capacity Development of visa system Expansion and development of public transport system Development of a comprehensive religious tourism growth strategy Entry and Exit 2

Opportunities Seized So Far Expansion of Makkah Haram Expansion of Medinah Haramain High-Speed Railway Jabal Omar Development Project 3 Relaxation of Visa Measures e. Visas Vision 2030 Tourism Growth Strategy

Opportunities Seized So Far Increase of Hajj Quotas Much Improved Health Care Provision Development of Critical ICT Infrastructure Expansion of SAUDIA Fleet and Flights 4

Opportunities Seized So Far - “Smart Hajj” Initiative § Smart Hajj initiative apps provide pilgrims with important applications as a gift from the kingdom of Saudi Arabia, with a view to serving them by delivering unique digital services during the hajj and umrah journey. the services cover all the holy places and include locating and navigating them, defining rites, detecting qibla (Kaaba) direction, and sending notifications of rush hours to avoid them. § It also furnishes technical guidelines/manuals and health apps. It groups several government apps that benefit pilgrims in the two holy cities of Makkah and Madinah in a modern technical style. Report Health Services Holy Sites • Applications • Apps that allow facilitate all provide info pilgrims to procedures services such on historic report safety and as barber sites around violations, seller therapeutic booking, Haramain and violations, services for postal provide cleanliness pilgrims services, historic info violations, fire Telecoms Transport Delivery incidents, weather on Haramain • An initiative to • Apps that updates, • Apps that themselves establish Internet damages and Quality of Experience losses, etc. facilitate inter laundry, etc. provide Measurement and intragrocery Platform in order to provide internet holy cities delivery users in Saudi Arabia transportatio services, take with reliable and accurate data n out delivery concerning services, broadband mobile internet goods services. transportatio 5 n services, etc.

Opportunities Seized So Far – Improving Service Offering through ADAHI Project PROBLEM: Sacrificing animals/livestock SOLUTION: The Kingdom of Saudi Arabia Project For Utilization Of Hady & Adahi Managed by Islamic Development Bank, established in 1983. (Odhiya) during Hajj season leads to huge hygienic issues around the holy sites; burning of unused livestock leftovers after slaughter; difficulty of matching pilgrims with slaughterers. PROCESS TARGET To serve pilgrims by easing the process of providing livestock that meets all Shariah and health requirements and by ensuring the cleanliness of the environment around the holy sites. BENEFICIARIES The project takes the responsibility of carrying out the ritual of Odhiya on people’s behalf, from the very beginning until the distribution of meat to eligible beneficiaries 6 Meat is distributed among the poor at the Grand Mosque and holy sites, charity organizations in Saudi Arabia, and beneficiaries in 27 Muslim countries throughout the world. These countries include Arab countries such as Jordan, Palestine, Syria and Iraq as well as countries in Africa and Asia such as Mali, Ghana, Senegal, Bangladesh and Azerbaijan.

Opportunities Seized So Far – Improving Service Offering through ADAHI Project WORKERS During the Hajj season, more than 40, 000 people work, including butchers, judiciaries, supporting labor, transportation, food supply, medical care, administration veterinarians, supervisors and a large logistics team. SACRIFICE OFFERING Over one million sheep are slaughtered, dressed, cut, packed and frozen in just 48 hours. All animals are subject to lawful and veterinary check-ups. The sacrificial offerings are performed in the permitted time during the pilgrimage season, while the rest, such as ransom, charity, will, and the Sunnah of Aqeeqah, are performed throughout the year. ELECTRONIC PATH PROFIT It is a charity, a non-profit project. In 2017, the project announced the launch of the “Electronic Path” managed by the Saudi Ministry of Hajj, which allows Umrah visitors and pilgrims to use the services provided by ADAHI. In 2018, the project has expanded its offices, use of technology and communication with pilgrim campaigns and companies around the world. Beneficiaries of the electrical path system can buy rites coupons online through the website www. adahi. org using a credit card, via money transfer or by accessing the Saudi Ministry of Hajj’s website. Coupons are also available with collaborating entities such as Al-Rajhi, Mobily, Hadyat Al-Hajj Wal Moatamer Secure Services Company, as well as with Saudi Posts’ outlets throughout the Kingdom. 7

Opportunities to be Seized: Fintech § Use Fintech to improve the service offering to Hajj and Omrah in: Geolocation services to locate people Use Biometrics… to store personal info (health, identity etc. ) for payment and to share information 8

Opportunities to be Seized: Fintech § Use Fintech to improve the service offering to Hajj and Omrah in: providing insurance services Providing payment methods instead of taking cash providing savings plans for Hajj and Omrah to reduce risk of loss to increase demand for Hajj and Omrah 9

Takeaway Points § The magnitude and complexity of the economy of Hajj has presented considerable challenges to the host country; challenges out of which several opportunities have arisen. § Many of these opportunities have already been seized, e. g. expansion of Haramain, evisas, Haramain high-speed railway; health care provision improvement; development of critical ICT infrastructure; “Smart Hajj” Initiative; and ADAHI. § Several opportunities remain to be seized, including using fintech to improve service offering in Hajj and Omrah. 10

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