Muslim pilgrims have begun arriving in Makkah two weeks before the annual Hajj as Saudi authorities put their preparations into high gear.
The holy city on Saudi Arabia’s west coast opened its doors to 935,966 pilgrims from abroad who travelled by air, land and sea as of Monday, according to the General Directorate of Passports.
Saudi Arabia said it will allow up to two million pilgrims from abroad this year and has expanded capacity several years after the coronavirus pandemic limited access to the holy sites. Last year, nearly 1.8 million Muslims from around the world performed the Hajj.
The Hajj, one of the five pillars of Islam, must be undertaken by all Muslims who have the means at least once in their lives. It is usually one of the world's largest religious gatherings.
Return of pilgrims from Syria
Among the faithful to arrive in Makkah were some of the 17,500 Syrian pilgrims flying from Damascus on the first direct air services to Saudi Arabia in almost 12 years, the Syrian Ministry of Transport said.
The development is part of a thaw in relations between Damascus and Riyadh, which last week appointed Saudi Arabia's first ambassador to war-torn Syria since 2012.
Syria was readmitted to the 22-member Arab League in 2023, after it had been suspended from the group for more than a decade over President Bashar Al Assad’s crackdown on anti-government protesters in 2011. Most countries in the Arab world have since restored diplomatic ties with Damascus.
Early preparations
Earlier this week, the Saudi Ministry of Interior began its practice of allowing only those with permits to perform the Hajj pilgrimage into the holy sites in Makkah. Breaking the decree between June 2 and June 20 risks fines of 10,000 Saudi riyals ($2,666).
Ahead of the pilgrimage, Saudi authorities said they have expanded resources to ensure the smooth transition for the 2.5 million pilgrims who will take part this year.
This year, the Hajj is scheduled to begin on the evening of June 14.
“One hundred and twenty-three bridges in Makkah and 20 bridges at other holy sites underwent maintenance, and 58 tunnels – 48 for vehicles and 10 for pedestrians – spanning 34,000 metres have been completed,” the Holy Makkah Municipality said in a statement carried by the Saudi Press Agency.
The Saudi Transport Authority also confirmed that more than 27,000 buses will take pilgrims from various regions to Makkah, whether at King Abdulaziz Airport in Jeddah or other ports of entry. More than 5,000 taxis are ready to carry pilgrims from Saudi cities towards holy sites.
Authorities in Makkah have also reviewed the readiness levels of 18 hospitals and 126 health centres in Makkah and the holy sites.
“All capabilities have been harnessed to train personnel and provide the required needs to ensure the continuation of work in all outpatient clinics in all hospitals and centres, as 3,944 beds were allocated in various health facilities, including 654 beds for intensive care,” said the Makkah Health Cluster authority.
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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