JUST IN: Saudi Arabia Set new conditions for merger of Umrah companies

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RIYADH — The Ministry of Hajj and Umrah has set six requirements as the criteria for the merger of Umrah service providing companies and establishments. This follows the ministry’s recent initiative to mitigate the economic and financial impacts of the coronavirus pandemic on the Umrah sector.

The initiative included a package of recommendations, the foremost of which is the move to stimulate horizontal mergers and acquisitions of Umrah companies and establishments as well as making investment in these entities.

According to 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 examining the complaints of pilgrims during the merger procedures.

These companies have nort been levied any penalties such as temporary suspension of the license or its cancelation during the merger procedures.

The companies shall submit a bank guarantee of its full amount before starting the merger procedures. Another 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 requirements set forth in the regulations for organizing services to pilgrims and its executive regulations.

Such companies shall attach a letter from the Umrah company or establishment with which it is wishing to merge, duly attested by the chamber of commerce including the document for canceling the license for the services of pilgrims granted to it earlier.

Okaz/Saudi Gazette

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