The Saudi Ministry of Hajj and Umrah has outlined seven key conditions for obtaining a license to provide Hajj/Umrah services to international pilgrims. The proposed regulations were published on the “Istitlaa” consultation platform, with each license valid for five years, renewable upon meeting the ministry’s criteria.
Full Saudi Ownership and Minimum Capital Requirement
According to the proposed rules, the service provider must be 100% Saudi-owned, registered either as a sole proprietorship or a company. The entity must hold a commercial registration with a minimum capital of 500,000 Saudi riyals (around Rs. 37.5 million), explicitly including the activity of serving Umrah pilgrims and visitors to Madinah.
Mandatory Bank Guarantee of 2 Million Saudi Riyal
Each company must submit an unconditional final bank guarantee worth at least 2 million Saudi riyals (Rs. 150 million) in favor of the Ministry of Hajj and Umrah. The guarantee must be issued by a local bank approved by the Saudi Central Bank, remain valid throughout the license period, renew automatically, and cannot be canceled without written approval from the ministry.
Operational Plan and Independent Management
Applicants are also required to submit an approved operational plan outlining the markets where the company operates to prevent overlap. Additionally, firms must provide a declaration of financial and administrative independence, employ separate staff from other companies, and furnish audited financial statements. Detailed information about company executives must be submitted and updated whenever changes occur.
Suspension or Revocation of License for Violations
The ministry clarified that if a company violates any of the listed conditions, its license may be temporarily suspended until the issue is resolved within 30 days. Failure to rectify the violation could result in permanent revocation of the license.
Automatic License Cancellation
The license will be automatically voided 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 notify the ministry within 30 days of the event.
Minister’s Authority to Revoke License
The Minister of Hajj and Umrah reserves the right to cancel a license if it is found that the holder transferred, leased, or failed to operate the business within a year of obtaining the license, or if any essential licensing requirements are no longer met.
