The Saudi Ministry of Hajj and Umrah has released a detailed set of seven new conditions for Umrah Operators licensing companies that offer Umrah services to international pilgrims. The proposed rules were shared on the official “Istitlaa” consultation platform. These rules will apply to all companies seeking authorization to operate Umrah services in the Kingdom. Each license will be valid for five years and can be renewed upon meeting all ministry requirements.
Full Saudi Ownership and Minimum Capital Requirement
According to the new regulations, companies providing Umrah services must be 100% Saudi-owned. They can register as either a sole proprietorship or a company and must hold a valid commercial registration specifically mentioning Umrah and Madinah visitor services.
Each operator must also maintain a minimum capital of 500,000 Saudi riyals (approximately Rs. 37.5 million).
Mandatory Bank Guarantee of 2 Million Riyals
To ensure financial stability and accountability, every licensed Umrah operator is required to submit an unconditional bank guarantee of 2 million Saudi riyals (about Rs. 150 million). This guarantee must be issued by a Saudi Central Bank-approved institution, remain valid throughout the license duration, and renew automatically unless canceled with ministry approval.
All applicants must present a comprehensive operational plan clearly defining their target markets to avoid overlap with other service providers. They must also prove financial and administrative independence, employ separate staff, and submit audited financial statements.
Additionally, any change in company management or key executives must be promptly reported to the ministry.
If an Umrah Operators company violates any of the prescribed rules, its license may be temporarily suspended. The operator will have 30 days to address the issue. Failure to comply may lead to permanent license revocation.
The license will be automatically terminated if the owner of a sole establishment passes away, loses legal eligibility, or if the company is dissolved or declared bankrupt. In such events, heirs or liquidators must inform the Ministry of Hajj and Umrah within 30 days.
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The Minister of Hajj and Umrah holds the power to revoke a license if a company transfers, leases, or fails to begin operations within a year after obtaining it. Licenses may also be canceled if the company no longer fulfills any key regulatory requirements.
These reforms aim to enhance the quality, transparency, and safety of Umrah services. Ensuring a more organized and reliable experience for pilgrims worldwide.
