Oil and Gas News from OilGasDaily.Com  
OIL AND GAS
Curtailed hajj compounds Saudi economic woes
By Anuj Chopra with AFP reporter in Mecca
Riyadh (AFP) June 28, 2020

Vacant religious sites. Abandoned pilgrim tents. Lifeless hotels. A stunning emptiness -- and fears of economic ruin -- haunt the usually bustling city of Mecca after Saudi authorities curtailed the hajj pilgrimage over coronavirus.

Islam's holiest city usually hosts millions of pilgrims for the annual rite, but the kingdom has barred overseas visitors from this year's event, scheduled for late July.

The hajj and the lesser umrah pilgrimage together rake in some $12 billion, keeping the economy humming in Mecca, home to two million people and marble-bedecked skyscrapers towering over Islam's most sacred sites.

A construction boom in recent years has added shopping malls, apartments and luxury hotels, some offering spectacular views of the sacred Kaaba, a cube-shaped structure in the Grand Mosque towards which Muslims around the world pray.

But most premises have lain empty since the pandemic reached the kingdom.

The virus, which hit Mecca hard, has also battered pilgrimage-reliant businesses that support hundreds of thousands of jobs, from travel agents to street barbers and souvenir shops.

Many have reported sweeping layoffs, pay cuts or delayed salaries.

"Zero sales, zero income," said Ahmed Attia, a 39-year-old Egyptian who works for a travel agency in the city.

"We're not used to seeing Mecca empty. It feels like a dead city. It's devastating for Mecca."

- 'Photo-op' -

A tsunami of cancellations has also battered overseas hajj operators who organise travel logistics for pilgrims, many of whom invest their life savings in the five-day ritual.

Saudi authorities had already in March suspended the umrah pilgrimage, which can be performed at any time.

Then, in a hugely sensitive but long-awaited decision, they said they would only allow around 1,000 pilgrims already present in the kingdom to perform the hajj.

That is a tiny fraction of the 2.5 million pilgrims who attended last year.

"It will be a symbolic event, a photo-op that allows the kingdom to say 'we didn't cancel the hajj as many expected'," said a South Asian official in contact with hajj authorities.

Saudi Arabia has stressed that the watered-down hajj will be open to people of various nationalities.

But the selection process for the few spots is expected to be hotly contested, as some Mecca residents expect to be given priority over outsiders.

"I have gone to hajj before and hopefully this year, with God's will, I will be among the first pilgrims," said Marwan Abdulrahman, a Saudi living in Mecca.

Many feared the pilgrimage, which packs colossal crowds into small religious sites, could have been a massive source of contagion.

The novel coronavirus has hit the kingdom with the highest number of cases in the Gulf -- more than 178,000 confirmed infections including 1,511 deaths.

But scaling the pilgrimage back will deepen the kingdom's economic slump, analysts say.

The move follows a sharp downturn in oil prices and coronavirus-led losses, which triggered austerity measures including the tripling of a value added tax and cuts to civil servants' allowances.

The hajj decision "does compound Saudi Arabia's economic difficulties", Richard Robinson, a Middle East analyst at Oxford Analytica, told AFP.

On Wednesday, the International Monetary Fund warned the kingdom's GDP will shrink by 6.8 percent this year -- its worst performance since the 1980s oil glut.

- Salary delays -

The Saudi Binladen construction group, a bellwether known for vast mega-projects, has missed salary payments for thousands of workers in recent months, according to a source close to the company and employees complaining on social media.

The Arabic hashtag "Delays in Binladen salaries" has gained traction as the slowdown impacts the firm behind a series of critical projects, including a $15 billion skyscraper hotel complex that towers over Mecca's Grand Mosque.

The company is seeking to charter a number of private jets to send many of its laid-off South Asian labourers home, according to the source.

The company did not respond to a request for comment.

The downturn has also disrupted Riyadh's ambitious plans to build a tourism industry from scratch, a cornerstone of the Vision 2030 reform programme to reduce the kingdom's reliance on oil.

"The government has singled out tourism as a key area for growth under its diversification strategy, and the loss of hajj revenues could set the sector back through lost investment or bankruptcies," said Robinson.

The kingdom began offering tourist visas for the first time last September in moves to open up one of the last frontiers of global tourism.

"While Saudis are looking to diversify tourism revenues beyond religious tourism, their efforts still build from the hajj," said Kristin Diwan of the Arab Gulf States Institute in Washington.

"Not having it at this time of disruption in oil markets is a blow."


Related Links
All About Oil and Gas News at OilGasDaily.com


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


OIL AND GAS
Venezuela calls US warship presence 'a provocation'
Caracas (AFP) June 24, 2020
Venezuela accused the United States on Wednesday of "an act of provocation" after a US warship steamed close to the South American country's territorial waters the day before. "A United States Navy destroyer approached within 30 miles of the coast, in a clear act of provocation. It cannot be termed otherwise....it is a clear defiant act," Defense Minister Vladimir Padrino said during a military ceremony in Venezuela's northern Carabobo state. He warned that if the destroyer carried out "military ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

OIL AND GAS
Efficient laser technique can convert cellulose into biofuel

Efficient indium oxide catalysts designed for CO2 hydrogenation to methanol

Engineers find neat way to turn waste carbon dioxide into useful material

ETW Energietechnik supplies the biomethane upgrading technology for a 45 km biogas grid

OIL AND GAS
New thin-film technology uses sustainable components for solar panels

CS Energy announces completion of the largest landfill solar-plus-storage project in Massachusetts

JinkoSolar to supply 60MW for first industrial hybrid plant in Chile

Canadian Solar Signed Two Corporate PPAs for 274 MWp Solar Power Projects in Brazil

OIL AND GAS
Simulating wind farm development

New system uses wind turbines to defend the national grid from power cuts

US wind plants show relatively low levels of performance decline as they age

Wave, wind and PV: The world's first floating Ocean Hybrid Platform

OIL AND GAS
X-energy Teams with NFI to fuel the High-Temperature Gas-Cooled Reactor in Japan

Framatome signs memorandum of understanding with Rosatom State Corporation

South Africa revives idea of new civilian nuclear program

Framatome completes modernization project at Doel nuclear power plant

OIL AND GAS
French climate council urges referendum on making 'ecocide' a crime

Simba CubeSat to swivel from Earth to Sun to help track climate change

A world redrawn: Worry about climate not COVID, says James 'Gaia' Lovelock

Warmest May on record, Siberia 10C hotter

OIL AND GAS
Amazon drives into robo-taxi field with deal for Zoox

New battery electrolyte developed at Stanford may boost the performance of electric vehicles

Self-driving bus services tested out in Tallinn

CMU method makes more data available for training self-driving cars

OIL AND GAS
New rocket attack in Baghdad, 6th in two weeks

Rockets hit Baghdad's Green Zone

In Iraq, public outrage over austerity stymies reform plan

Rockets hit Iraqi base north of Baghdad: military

OIL AND GAS
One conflict, two museums: how the Korean War still divides the peninsula

Korean War echoes through the South's generations

US, Russia hold arms talks with little sign of accord

Opening nuclear talks with Russia, US may also be ending them









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.