Saudi Arabia approves major overhaul to foreign pilgrim services law

Riyadh: Saudi Arabia has approved major amendments to the Foreign Pilgrim Service Providers Law, abolishing the long-standing tawafa bodies and replacing them with a new system of Haj hospitality companies.

Under the changes, approved by the Council of Ministers, 21 articles of the existing law have been amended and a new article (19 bis) added, restructuring the sector and redefining service responsibilities, Arabic daily Okaz reported.

Key classifications

The amended law establishes four categories of licensed Haj hospitality companies:

• Companies serving pilgrims in Makkah and the holy sites
• Companies providing water to pilgrims in their residences within Makkah
• Companies responsible for receiving and transporting pilgrims at the Kingdom’s entry points and managing their return
• Companies serving visitors to the Prophet’s Mosque in Madinah.

Operational changes

Under the amendments:

• Companies licensed to operate in Makkah, the holy sites, and those serving visitors to the Prophet’s. Mosque cannot provide services directly and must form specialised subsidiaries
• Companies licensed for water supply, reception, and transport may establish service companies
• No new hospitality companies may be created
• Ownership and management of hospitality companies are limited to Saudi citizens
• Inheritance of shares follows the Personal Status Law, with procedures defined for non-Saudi heirs.

Contracting and regulation

Pilgrims or their representatives must contract directly with licensed service providers. The regulations emphasise expanding participation in hospitality and service companies and attracting qualified Saudi professionals to improve service levels.

The Ministry of Haj and Umrah is empowered to ensure service continuity by contracting alternative licensed companies if any provider fails its obligations. It may also establish coordinating councils for international service providers.

Penalties

Violations of the regulations, bylaws, or executive decisions may lead to:

• Suspension of companies for up to three years
• Removal of board members or dismissal of employees
• Prohibiting individuals from working in the sector for up to five years

Sector development

A Haj services specialist described the amendments as a major step towards strengthening governance, improving service quality, and aligning operations with a year-round hospitality model. He said the restructuring supports clearer classifications, competitive improvement, and the development of specialised programmes tailored to pilgrims’ needs.