MAKKAH: A number of dealers in the money exchange sector in Makkah have urged the Saudi Arabian Monetary Agency (SAMA) to expedite giving licenses to interested citizens to open money exchange offices as the Umrah season is rapidly approaching and the holy city only has five of these offices at present.
"The current foreign exchange offices will not be able to cope with the demand, which is expected to rise significantly in view of the ongoing expansion and development projects in Makkah that will lure more visitors and Umrah pilgrims," Al-Eqtisadiah reported Wednesday. The local daily was quoting bankers in the holy city.
Adil Maltani, chief of the exchange dealers, said it had become an urgent necessity to grant licenses to citizens to establish foreign exchange offices, as the Umrah season is only 20 days away. "With the recent closure of 10 foreign exchange offices for lack of formal licenses, Makkah now has only five of these offices," he said.
According to Maltani, Makkah is the largest foreign exchange market in the Kingdom due to the large number of people who come from outside for Umrah and Haj. "The lack of a sufficient number of money exchange offices will open wide doors for the black market in malls and shopping centers," he said, warning that the foreign workers might tamper with the rates, as many of the people coming from outside may not have any idea about the prices.
Maltani proposed to reopen the exchange offices that were closed for a temporary period of six months, during which they should correct their situation. "This is one way of preventing the appearance of a black market," he said.
He asked SAMA to be more flexible in its conditions, which included a feasibility study and long years of experience.
SAMA revealed about a week ago that the Council of Ministers had issued a decision to facilitate the granting of licenses for the opening of more money exchange offices and said this was in response to the increasing requests by interested citizens, especially from Makkah and Madinah.
A number of money dealers and investors have welcomed the council's decision saying it would organize the money exchange business and give a further boost to the investment and tourist activities benefiting more than four million people who come to the Kingdom for Umrah or Haj every year.
Licenses for the opening of money exchange offices were halted about 40 years ago.
© Arab News 2012
