Regulations for the Coordination

Council for Domestic Hajj Companies

and Establishments

Issued by Ministerial Resolution no.

68168, dated 25/5/1434H

Article 1

The following terms and phrases shall have the meanings assigned thereto unless

the context requires otherwise.

Ministry: The Ministry of Hajj and Umrah.

Minister: The Minister of Hajj and Umrah.

Council: The Coordination Council for Domestic Hajj Companies and

Establishments.

Chairman: The Chairman of the Council.

Companies and Establishments: The companies and establishments serving

domestic pilgrims that are licensed to operate by the Ministry of Hajj and Umrah.

General Secretariat: The General Secretariat of the Council.

Secretary General: The Secretary General of the Council.

Pilgrims: Nationals and residents of the Kingdom of Saudi Arabia who have

obtained Hajj permits from the Ministry of Interior.

Article 2

The Coordination Council for Domestic Hajj Companies and Establishments

shall be established, shall enjoy legal personality, and shall be subject to the

supervision of the Ministry.

Article 3

The Council shall undertake the following tasks:

1. coordinate as required with the Ministry and the relevant official and non-

official agencies and between companies and establishments with regard to all

issues that would contribute to promoting the standard of service provided to

pilgrims and facilitate their performance of Hajj rituals;

2. represent companies and establishments with government and other agencies,

with the exception of judicial authorities, within the scope of competence of

the Council, in all matters related to serving domestic pilgrims;

3. represent companies in conferences, seminars and with the media;

4. achieve interdependence and integration between companies and

establishments and strengthen competition thereamong;

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5. seek the assistance of competent agencies and consulting firms to conduct the

necessary research and studies for development of professional work at the

companies and establishments and of services and service provision methods,

and provide advice and guidance thereto to improve the level of performance;

6. propose policies and programs that achieve the Council’s goals and objectives;

7. issue regulations and administrative structures for the Council’s administrative

organs, in coordination with the Ministry;

8. develop and increase the Council’s resources upon conducting the necessary

feasibility studies, in coordination with the Ministry;

9. record the information and data of the Council’s activities and Hajj activities,

as well as the data of the companies and establishments;

10. organize training and awareness-raising courses for workers in the domestic

pilgrims service sector, in coordination with the concerned agencies;

11. establish an advanced automated system to communicate with all companies

and establishments and ensure that information is delivered thereto in a timely

manner, and connect said system to the Hajj and Umrah Service Center at the

Ministry;

12. take part in resolving disputes that may arise between companies and

establishments, or between partners in the same company, without prejudice

to the competencies of other concerned agencies;

13. discuss the Council’s operational plan and estimated budget, to be prepared

by the General Secretariat;

14. carry out all additional tasks assigned thereto by the Ministry within the basic

tasks of the Council; and

15. propose solutions to problems and obstacles that could encounter the

domestic pilgrims service sector.

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Article 4

The permanent headquarters of the Council and its subsidiary organs shall be

based in Makkah, and it shall hold its meetings therein. However, it may, if the

need arises, convene elsewhere with the approval of the Chairman. All the

communications and correspondences of the Council shall be sent to this

permanent address.

Article 5

The Council shall carry out the tasks assigned thereto in Article 3 of these

regulations, with the exception of the tasks assigned to the General Assembly.

The Council’s internal by-law shall specify its working rules and procedures.

Article 6

The organizational structure of the Council shall include a General Assembly

wherein all the establishment owners and general managers of companies shall

be represented; each of these members shall have the right to vote in the General

Assembly, which shall have the competence to carry out the following tasks:

a. approve the fees for services provided by the Council;

b. approve the annual budget and the annual report of the Council;

c. determine the remuneration of the Chairman, Deputy Chairman and Secretary

General.

The General Assembly shall convene pursuant to the following:

1. The General Assembly shall convene at the invitation of the Chairman, at the

request of the Ministry of Hajj and Umrah pursuant to a request from 30% of the

establishment owners and general managers of companies, at the request of the

certified accountant of the Council, or whenever the need arises.

2. The invitation to convene the General Assembly shall be addressed at least 25

days in advance by announcement thereof in a local newspaper, indicating the

place and time of the assembly.

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The Council shall on the same date invite the establishment owners and general

managers of companies via registered letters to their addresses entered in the

Council records, and the invitation shall include the agenda. A copy of the

invitation and agenda shall be sent to the Ministry at the same time it is sent to

the aforementioned parties.

3. The Ministry may delegate one or more representatives to attend the General

Assembly of the Council as observers; one of these delegates shall serve as the

secretary of the Assembly meeting.

4. Every establishment owner or general manager of a company who is a Council

member shall have the right to attend the General Assembly; he may also

delegate in writing an establishment owner or general manager of a company

other than the Council members pursuant to a power of attorney. Said agent may

represent himself and his principal.

5. Every establishment owner or general manager of a company may delegate

any person whom he deems appropriate pursuant to a power of attorney to attend

the General Assembly meeting.

6. The General Assembly shall discuss and approve the final accounts of the

preceding fiscal year, and shall vote on any issues raised by the Council that

require the approval of the General Assembly.

7. The General Assembly shall convene at least once every year within six

months of the end of the fiscal year and approval thereof by the Ministry. The

General Assembly may be called to convene whenever the need arises.

8. The Council shall issue a budget for each fiscal year of the Council as well as

a detailed report on the Council’s activities and financial position. The Chairman

shall sign the aforementioned documents, and copies thereof shall be deposited at

the Council’s headquarters to be at the disposal of the establishment owners and

general managers of companies for review only within the period starting from

the date of announcement of the General Assembly meeting up to the date of

convening thereof. The Chairman shall send copies of these documents to the

Ministry at least 25 days prior to the date of the General Assembly meeting.

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9. Establishment owners and general managers of companies willing to attend the

General Assembly, whether in person or by proxy, shall register their names with

the Council up to the time of the meeting. A list of the names and number of the

attendees and representatives, whether in person or by proxy, shall be drawn up

at the Assembly meeting, and each attendee may review said list.

10. The General Assembly meeting shall only be deemed valid if attended by a

number of establishment owners and general managers of companies, both in

person and by proxy, representing 51% of the total number of licensed

establishments and companies. If the quorum is not present at the first meeting,

an invitation shall be issued for a second meeting to be held within 30 days

following the previous meeting in the same manner stipulated in Paragraph (3)

hereabove. The second meeting shall be deemed valid regardless of the number

of attending establishment owners and general managers of companies. The

General Assembly decisions shall be passed by the absolute majority of the

attending members represented in the meeting, whether in person or by proxy.

11. The members of the Council may not participate in voting on General

Assembly decisions related to discharging them of responsibility for their

management.

12. Every establishment owner or general manager of a company may discuss the

topics listed on the agenda of the Assembly and to direct questions with regard

thereto to the Council members or the certified accountant. Said questions and

inquiries shall be answered to such an extent that does not prejudice the interests

of the Council. Should an establishment owner or general manager of a company

find the reply unconvincing, he may have recourse to the Ministry, whose

decision in this respect shall be enforceable.

13. Each establishment owner or general manager of a company shall comply

with the decisions issued by the General Assembly in accordance with the

provisions of these regulations and other applicable regulations, whether in his

presence or absence, and whether he agrees or objects to said decisions.

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14. The General Assembly meeting shall be presided over by the Chairman or his

deputy in the event of his absence. The Chairman of the Council or his designee

shall open the meeting session and shall read a summary of the Council’s report.

He shall also organize the discussions, direct questions, and set a mechanism to

be used for secret and open voting, and he may delegate any person he deems fit

to organize same. The Chairman shall, at the beginning of the session, select one

or more persons from among the establishment owners and general managers of

companies to serve as the secretary of the General Assembly in addition to the

Ministry representative.

15. The final accounts or any other issues put by the Council for voting and

announced in the agenda shall, after the end of discussions, be voted on by secret

ballot method. The establishment owners and general managers of companies

present at the session shall cast their votes for approval, rejection or abstention

on the voting forms distributed to them by the Council upon registering their

names and signing in to attend the meeting. The votes that are not cast on the

forms distributed to the members shall not be counted.

16. The Chairman of the General Assembly shall form a committee during the

Assembly meeting to collect voting forms from the establishment owners,

general managers of companies or their attending agents as soon as the voting

process is completed. No person other than the committee members may collect

any forms from the attendees.

17. Votes shall be counted and recorded by the committee formed during the

Assembly meeting with the participation of the Ministry delegate. All votes that

are found to be inconsistent with the laws and instructions shall be excluded.

Once the counting process is completed, the results shall be submitted to the

chairman of the session, who shall recite the voting results, which shall then be

approved by the Assembly. The Assembly decisions shall be passed by the

absolute majority of the number of votes after excluding the forms of owners

who abstained from voting.

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18. Minutes shall be drawn up at the Assembly meeting including the names of

the establishment owners and general managers of companies attending in person

or by proxy, the decisions made, the number of votes for or against same, and a

full summary of the discussions that took place in the meeting. Said minutes shall

be drawn up on a regular basis after each meeting in a special record to be signed

by the Chairman of the Assembly.

19. Without prejudice to the rights of bona fide third parties, every decision

issued by the General Assembly in violation of the provisions of these

regulations and other regulations in force shall be nullified. Every establishment

owner or general manager of a company or their agents may object to said

decision in the minutes of the meeting.

Article 7

The Council may form specialized committees and subsidiary units to be

entrusted with specific technical, advisory and executive tasks and duties as per

the Council’s needs and to achieve its goals and objectives. The Council shall

have authority over all these units and committees.

Article 8

All 12 members of the Council, including the Chairman and his deputy, shall be

appointed by the Ministry from among the establishment owners and general

managers of companies in the first session of the Council for a period of four

years in accordance with Article (15) of these regulations.

Article 9

The formation of the Council for the following sessions shall be made pursuant

to the following:

1. The Council shall be composed of 12 members, and the Minister may increase

said number as need be.

2. Two-thirds of the Council members shall be elected by the companies and

establishments, and the Minister shall appoint the remaining members from

among the establishment owners and general managers of companies.

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3. Nomination for Council membership shall be in accordance with the election

regulations approved by a decision of the Minister.

Article 10

Every establishment owner or general manager of a company may run for

Council membership whenever he meets the following conditions:

1. No decision to suspend the establishment or company from service shall have

been issued for the last five years of operation.

2. The Ministry evaluation score of the establishment or company shall not be

less than 75% on a cumulative basis for the last five years.

3. He shall not have been convicted in a crime involving moral turpitude or

dishonesty unless he has been rehabilitated.

4. He shall not be more than 65 years old.

5. He shall be physically fit and healthy.

6. He shall have exercised the relevant service for a period of no less than five

years.

7. He shall hold at least an intermediate certificate or its equivalent.

The Minister may issue an exception to one or more of the above-mentioned

requirements whenever he deems it appropriate.

Article 11

The Council formed in accordance with Article (9) hereof shall elect one of its

members to act as the Chairman. Said Chairman may choose a deputy to assist

him in the performance of his duties and responsibilities, and to assume same in

the absence of the Chairman. The Minister may, if required, select a Council

member to act as Chairman of the Council.

Article 12

Membership of the Council shall terminate in any of the following cases:

1. Expiry of the election term of the Council specified in Article (15) of these

regulations.

2. Dissolution of the Council as stipulated in Article (14) of these regulations.

3. Death of the member.

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4. The member’s inability to carry out the tasks assigned to him.

5. The member's loss of his position in the company management.

6. A final decision has been made to revoke the domestic pilgrims service license

granted to the establishment run or owned by the member.

7. Absence from attending three consecutive ordinary or extraordinary meetings

of the Council or five separate meetings without a convincing excuse.

8. Non-renewal of the license of the establishment run or owned by the member.

9. The member’s resignation and the Minister’s acceptance thereof.

10. A judicial sentence has been rendered against the member in a crime

involving moral turpitude or dishonesty.

11. A decision by the Minister to revoke the membership.

Article 13

If the position of a member becomes vacant due to loss of membership pursuant

to the reasons and conditions set forth in Article 12, the Minister may appoint a

replacement for him, in which case the term of office of the replacement member

shall continue up to the expiry of his predecessor's term.

Article 14

The Council shall be dissolved in the following cases:

1. Expiry of the membership terms of more than half of the Council’s members.

2. In the event that the Council is unable to carry out the tasks entrusted thereto

it.

3. In the event that the Minister deems that the public interest so requires.

The Minister may, in the aforementioned cases, issue a decision assigning

whomever he deems appropriate to carry out the duties of the Council until the

members thereof are re-elected.

Article 15

The term of Council membership shall be four years; members whose term has

expired may be re-elected or appoint for one or more other terms.

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Article 16

The Ministry shall supervise and monitor the periodic elections of the Council.

The Council shall, in coordination with the Ministry, issue the election

regulations to determine the elections date and place, and the mechanism for

approval of results thereof at least six months prior to the end of the first session

of the Council. The Ministry shall take all the necessary measures to ensure that

these elections are carried out with integrity and transparency and in a free

electoral environment.

Article 17

The Council shall convene at least once a month upon an invitation from the

Chairman including the meeting agenda. The Council may hold extraordinary

meetings if requested by any member and endorsed by at least half of the

members. The periodic meetings of the Council shall only be deemed valid if

attended by at least two thirds of the members, including the Chairman or his

deputy. Extraordinary meetings shall be deemed valid only with the attendance

of at least half of the members, excluding the Chairman or his deputy. No

Council member may delegate a third party or anther Council member to attend

the meetings of the Council.

Article 18

Council decisions shall be made by the majority of the attending members. In

case of a tie, the Chairman or his deputy shall have the casting vote. Said

decisions shall be made by means of public voting. Council decisions shall be

deemed final and binding and shall be effective after the lapse of 30 days from

the date of their notification to the Ministry without any objection or comments

being made thereon.

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Article 19

The Council shall have a legal corporate personality pursuant to which it shall be

entrusted to deal with third parties in its name and for its account and entitled to

acquire rights and bear obligations. The Council shall be represented by its

Chairman or his designee against third parties and in litigation, pleading and

making defenses in the name of the Council before the various types and degrees

of judicial authorities. The Chairman or his designee shall also be entrusted to

represent the Council before the relevant official and private agencies.

Article 20

Each Council member shall be paid a remuneration not exceeding SAR 2,000 per

month for attending the ordinary and extraordinary Council meetings and

performing the tasks entrusted to him by the Council, pursuant to specific

controls under the internal regulatory rules organizing the duties of the Council;

said rules shall be issued by a decision of the Council Secretariat.

Article 21

The Council shall appoint a Secretary General.

Article 22

The Secretary-General shall assume all the administrative and financial affairs of

the Council. Any nominee for this position shall enjoy efficiency and experience

and shall be approved by the Minister.

Article 23

The General Secretariat of the Council shall be in charge of the following tasks

and duties:

1. prepare the Council's meeting agenda, make arrangements for Council

meetings, and draft meeting minutes;

2. prepare draft decisions and recommendations to be issued by the Council and

provide the Council members with copies thereof;

3. coordinate between the various units and committees of the Council and

distribute duties and correspondence pursuant to the competent agency of the

Council;

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4. prepare all correspondences of the Council with companies and

establishments, the Ministry of Hajj and Umrah, and official and non-official

agencies;

5. prepare for the Council’s participation in events, exhibitions, symposia,

official events and the like;

6. prepare the annual report on the Council’s activities to be approved by the

Council;

7. prepare the Council's operational plan;

8. supervise the Council’s administrative and financial work and the performance

of employees on a daily basis;

9. carry out reports and studies assigned to the Secretary-General by the Council;

10. prepare contracts for appointing employees and follow up on their benefits

and remunerations;

11. represent the Council in matters that the Council or the Chairman deems it

appropriate to entrust thereto;

12. follow up the implementation and application of the decisions issued by the

Council;

13. carry out all the tasks assigned to the Secretariat by the Council within the

scope of its competencies.

Article 24

The Council shall have an independent financial liability that is separate from

that of the of companies and establishments. Accordingly, it shall be entitled to

acquire rights and bear financial obligations in its name separately from its

members. The Council shall issue a budget and a report on the financial position

on an annual basis.

Article 25

The Council shall have an auditor to be nominated by the Council and appointed

upon the approval of the Minister from among certified accountants licensed to

operate in the Kingdom of Saudi Arabia. Said auditor shall be in charge of

auditing the Council’s accounts, balance sheet, profit and loss account,

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inventories and final accounts, and shall submit an annual report with the final

budget, and shall notify the Ministry thereof.

Article 26

The Council resources shall consist of the following items:

1. Financial consideration for the services provided by the Council;

2. Fees for the services that it provides directly;

3. Gifts, grants and subsidies received by the Council.

Pilgrim shall not incur any additional amounts for the fees to be paid by the

companies and establishments serving domestic pilgrims to the Council.

Article 27

The Council may make disbursements from its revenues to perform its duties in

accordance with the accounting principles and regulatory financial instructions.

Article 28

The fiscal year of the Council shall start on the first day of Rabi’ I of every Hijri

year and shall end with the last day of Safar of every Hijri year.

Article 29

The Council shall abide by the recognized financial rules, instructions, and

accounting models, and its books shall be kept in accordance with commercial

principles. The Council shall also deposit its funds in its name with one or more

local banks to be selected by the Council.

Article 30

The Council shall issue its own internal by-law, in coordination with the

Ministry.

Article 31

The Council shall comply with the following financial controls:

1. no amount may be disbursed from the Council’s fund, nor a check withdrawn

on the Council’s bank account except pursuant to a payment voucher signed

by the Chairman or his designee, and by the supervisor of the financial

division or his designee. No amount shall be withdrawn or permitted to be

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disbursed except with dual signatures. The signatures of the two authorized

representatives referred to hereabove shall be approved by the bank with

which the Council’s account is opened, pursuant to a decision issued by the

Chairman.

2. The finance division shall prepare a monthly budget review to be approved by

the Secretary General of the Council, and to be submitted to the Council at its

periodic meeting for approval.

3. Disbursements from the Council’s funds shall be made pursuant to the above

procedures by a bank check from the Council’s account. This shall include

disbursement of the salaries of the Council employees and workers and the

remuneration of the Council members and specialized committees.

4. A permanent cash advance up to a maximum of SAR 30,000 may, by a

decision of the Council, be allocated and disbursed to the treasurer for petty

and emergency expenses. The Council shall delegate the Secretary General of

the Council to approve any disbursement therefrom. Disbursement shall be

made under the signature of the Secretary General of the Council and the

supervisor of the finance division or his designee, provided that the said

advance be settled by the end of the Council’s fiscal year.

5. All the Council’s needs shall be provided on the basis of actual need, with the

appropriate quality and price, and pursuant to certified invoices or records

within the limits of the delegated powers.

Article 32

The Council members shall be held jointly accountable for any violation of the

provisions of these regulations. All Council members shall be held accountable if

the error arises from a decision made by their unanimous vote. Members who

objected to decisions made by the majority shall not be held accountable if they

have explicitly recorded their objection thereto in the meeting minutes.

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Absence from attending the meeting wherein the decision was made shall not be

deemed as an acceptable reason to exempt a member from liability unless it is

established that the absent member has not been acquainted with the decision.

The Minister may suspend the implementation of any decision issued by the

Council if violates the provisions of the regulations or the decisions issued

thereunder or if it exceeds the prescribed objectives of the Council.

Article 33

The Council shall organizationally be subject to the control and supervision of

the Minister or his designee.

Article 34

The Minister may interpret the provisions of these regulations, and his

interpretation shall be binding in the event of any dispute pertaining to any of the

articles of these regulations.

Article 35

The Ministry of Hajj and Umrah may amend these regulations, in coordination

with the Ministry of Interior and the Ministry of Commerce and Industry,

pursuant to a proposal from the Council, or if the need arises.

Article 36

These regulations shall repeal all previous decisions or committees inconsistent

therewith.

Article 37

These regulations shall be effective as of the date of issuance thereof.

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