Monday, September 21, 2020
Saudi Arabia sets criteria for merger of Umrah operators
The Ministry of Hajj and Umrah in Saudi Arabia has set 6 requirements as key criteria for the merger of Umrah service providing companies.
This step comes after the ministry's initiative to reduce the economic and financial impacts of the Covid-19 pandemic on the Umrah sector.
- The initiative includes a package of recommendations, the supreme of which is the move to stimulate horizontal mergers and acquisitions of Umrah companies and establishments as well as making investment in these entities.
- As per the new conditions, companies involved in the merger must have a valid license for Umrah services and there should not be any complaints against their intending merger before the committee probing the complaints of pilgrims during the merger procedures.
- These companies have not been levied any fines such as temporary suspension of the license or its cancellation during the merger procedures.
- The Hajj operators will have to submit a bank guarantee of its full amount before starting the merger procedures. One more condition is related to those merging companies that are not licensed for the time being to provide the services to pilgrims.
- Such companies shall fulfill all the needs set forth in the regulations shall attach a letter from Umrah establishment with which it is going to merge, duly attested by the chamber of commerce including the document for canceling the license for the services of pilgrims granted to it before.
