The annual Haj season is beneficial to the Saudi economy, and possibly more so in the current environment of low oil prices. In fact, a positive spillover effect forms an integral part of the Saudi Vision 2030.

The plan, released earlier in the year, calls for tripling the number of people performing Umrah, which takes place anytime except during the annual Haj. Currently, some 8 million Muslims perform Umrah, or the “little Haj”, throughout the year.

Interestingly enough, other economies — notably Dubai and Bahrain — profit from Saudi visitors during the Haj. Some nationals get extended days off during the season.

Flights from different Saudi cities to Dubai are full during the Haj holidays, as Saudi nationals enjoy the many leisure and entertainment options offered in the emirate. Likewise, Bahrain receives an influx of Saudi visitors during the long Haj festivities.

Not surprisingly, Saudis outspend nationals from other Arab countries in foreign travel. The kingdom boasts the largest population, size, and economy within the Gulf. A recent report put the spending abroad at $25 billion, while Emiratis come second with $17.7 billion.

Concerning the Haj, four cities in western Saudi Arabia benefit substantially, namely Mecca, Madinah, Jeddah and Taif. Jeddah with its King Abdul Aziz Airport serves as the gateway to Mecca.

Chances are that the aviation sector in the kingdom could further cement the benefits derived from visitors to the Holy Places in Mecca and Medina in the years to come. Saudi officials are contemplating a plan to privatise the airports.

The proposal fits Vision 2030, which places emphasis on strengthening the role played by private investors in the local economy. This is vital in the light of challenges posed by the phenomenon of low prices and the need to streamline public spending where possible.

The budget is under pressure, having suffered a deficit of $98 billion in 2015. For comparison purposes, fiscal years 2014 and 2013 ended with surpluses of $14 billion and $53 billion, respectively.

The Haj serves as an opportunity for Saudi businesses to launch new consumer products. The notion of supply creating its own demand, though disputed, is at least partially true during Haj. Businesses not capable of selling to a captive consumer base have only themselves to blame.

In addition, the season provides employment opportunities for a number of Saudi nationals. Thousands of Saudis sell foodstuff and prayer beads. Still, others, including foreign residents, use their private vehicles to transport pilgrims. Some of these activities are not recorded properly reflecting an absence of an oversight regime.

According to a report produced by the World Economic Forum, youth unemployment stands at slightly above 20 per cent in Saudi Arabia. According to official statistics, total unemployment is at 11.6 per cent, relatively high by GCC standards. Saudi authorities are noted for updating jobless figures on a regular basis.

However, actual joblessness should be less as some locals find ways to rent services including properties and vehicles during Haj.

Hopefully, the tourism receipts would be enhanced as officials opt to open up the kingdom to wealthy Muslim pilgrims.

The Haj season complements other economic activities, and somehow compensates for the consequences attached with low-oil prices.

The writer is a Member of Parliament in Bahrain.