Saudi Arabia’s new draft law for domestic pilgrims stipulates business license, competitiveness

Grand Mosque in Makkah

Saudi Arabia’s new draft law governing the affairs of domestic Hajj pilgrims stipulates that service providers should obtain a license from the Ministry of Hajj and Umrah to engage in serving domestic pilgrims and that activities should be performed on a competitive basis.

The new draft law, which will be unveiled soon, stipulates that service providers should provide these services directly and may offer these services via authorized parties in line with the ministry’s relevant criteria.

Under the new draft law, the ministry will prepare a quantitative and qualitative service classification, including services and prices, hospitality services, service insurance and financial guarantees.

In addition, service providers should conclude a contract through the platform approved by the ministry, and the contract must include details such as standard levels of service; duration of time for the provision of service; prices for each level; services provided under each service level; service provider data, and the contracting mechanism between pilgrims and the service provider.

However, service providers are banned from concluding Hajj service contract with those wishing to perform Hajj from outside the Kingdom or providing service to them without the approval of the ministry. A maximum fine of SAR 500,000 will be slapped on violators of these regulations.