Pilgrims pray on Mount Arafat near Makkah. Photo: Saudi Ministry of Media
Pilgrims pray on Mount Arafat near Makkah. Photo: Saudi Ministry of Media
Pilgrims pray on Mount Arafat near Makkah. Photo: Saudi Ministry of Media
Pilgrims pray on Mount Arafat near Makkah. Photo: Saudi Ministry of Media

Saudi Arabia to allow women over 45 to perform Umrah without a male guardian


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Saudi Arabia's Ministry of Hajj and Umrah has announced that women over the age of 45 will be allowed to perform Umrah without being accompanied by a male guardian, known as a mahram.

The announcement on Tuesday was the first time the kingdom has opened up to Muslim women around the world who want to perform Umrah at the Grand Mosque in Makkah.

"So far women were only allowed to come in groups of women to perform Umrah or Hajj, or with a mahram," a travel agent in Jeddah said.

"The rules of the kingdom are now changing as it is opening up and this is going to make a lot of Muslim women happy because it is easing the rules and pressure on them coming here."

The change will also save money for many families, said Donna Mohammed, an Indonesian citizen who lives in Saudi Arabia.

"Usually they would have to bring a son, or brother if they are widowed or if their husbands can't travel," she said.

"That's women paying out of their pockets just so a male member of the family can accompany them – doubling costs of travel and spending money because you're paying for the mahram too.

"I think this is great for older women especially who don't necessarily have the means or availability of mahram."

In a similar move, last year's Hajj was made easier for women. Saudi authorities announced that women would be allowed to conduct the pilgrimage without a male relative.

In June last year, the country announced that Saudi women "can now live on their own without requiring the consent" of a mahram, after a new legal amendment by the kingdom.

Saudi Arabia has eased restrictions and opened up its borders to unvaccinated pilgrims to perform Umrah and pray in the two holy mosques, if they are not infected with Covid-19 and have now been in contact with a person who has the disease.

Pilgrims can now book their Umrah slots on the Eatmarna app before travelling to the kingdom.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: March 30, 2022, 3:33 PM