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$3bn Umrah spend prompts focus on local products

JEDDAH, July 20, 2015

A total of 5.8 million Umrah pilgrims spent about SR12 billion ($3.2 billion) in the last nine months in Saudi Arabia, a report said, citing experts who stressed the need for more home-manufactured goods to boost the economy.

The majority of the pilgrims’ spend was on foreign-made products, highlighting the need to set up small-scale and large-scale industries in the kingdom, which will also generate employment for nationals, the Arab News report added.

The “early grouping” programme led to an increase in the number of pilgrims and ensured there was no logjam during Ramadan, Abdulaziz Al-Daghstani, an economist, was quoted as saying by the paper.

“This increase in the number of pilgrims resulted in healthy business,” he said.

The volume of expenditure of each pilgrim in terms of buying presents is at least between SR1,500 and SR2,000, Al-Daghstani said, adding that these are not high in the light of increasing prices.

Pilgrims focus on buying clothes, prayer mats, prayer beads and gold, according to Economic Society member Essam Khalifa.

“There is a need to hold a conference to discuss how Saudis can benefit further from the Umrah returns. Factories must be established in Saudi Arabia to produce goods as most of those sold here are imported,” Khalifa said.




Tags: Saudi Arabia | pilgrims | Umrah |

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