The spending associated with the fasting month of Ramadan contributes handsomely to expansion of the Saudi economy. The month of fasting, this time spanning from July 20 to August 19, is noted for enticing a large of visitors to the Grand Mosque in Makkah for Ramadan Umrah. In fact, a significant amount of money is projected to be infused into the Saudi economy during the last 10 days of Ramadan, the most common period for pilgrims to visit the holy shrines other than the annual Haj. The period coincides with revelation of the holy Quran.

If any, visitors are complaining of costs relating to the prices of hotels and transportation. On average, prices tend to increase up to 30 per cent in Ramadan compared to Umrah performed at other times of the year. Prices for a 10-day visit range between $9,300 (Dh34,150) to $24,000 largely depending on choice of residence for those insisting on staying at hotels and residences near the Grand Mosque.

Arguably, Haj and Umrah authorities in Saudi Arabia are against the idea of intervening or fixing prices. They rightly contend that the period is high time for business, with investors in Makkah looking forward it to reap maximum profits.

Nowadays, Saudi authorities allow for Umrah at any time except during the annual Haj. There were times when Umrah performance was restricted to seven months in a year. The annual number of visa permits issued stand close to 6 million compared to only 4 million permits a few years ago.

In fact, Saudi authorities cannot be blamed for being receptive these days to Umrah visitors. According to a notable study, the Umrah season alone contributes around $9 billion to the Saudi economy. The figure rises to nearly $30 billion when adding activities related to the annual Haj. The figure covers travelling, accommodation and living expenses, as well as cost of animals for sacrifices.

Still, Makkah is expected to become exceptionally busy around mid-August when the city hosts an emergency summit of the 57-member Organisation of Islamic Cooperation (OIC). In June 2011, the OIC changed its name from the Organisation of Islamic Conference to the current one.

Certainly, a change of attitude towards pilgrims says a great deal about other positive changes in Saudi economy. In a major shift of policy in 2011, Saudi authorities opted for liberalising the domestic aviation market by inviting bids from foreign carriers to operate in the vast kingdom.

Currently, only flag-carrier Saudi Arabia and Nas Air, the domestic low-cost carrier operate flights in the country. Latest statistics put the number of domestic passengers around 23 million per annum. Saudi Arabia boasts a total population of 28 million. Saudis are noted for making frequent flights, domestically and internationally.

Goals of such an extraordinary policy shifts include brining more competition and efficiency in the market. The plan calls for allowing full service and low-cost carriers operating flights in Saudi Arabia. Thus far, interested parties include Qatar Airways, Hainan Airlines of China and Gulf Air of Bahrain.

Other developments confirming steady development of transportation infrastructure relates to recently shortlisting four groups of companies to bid for an electrical subway train network in Riyadh. The forward-looking project intends to offer connections to the airport among other major destinations in the capital, notably the newly-built King Abdullah Financial Centre.

The developments are paying off, with Bloomberg forecasting a notable 4.8 per cent real growth, adjusted for inflation, of Saudi economy in 2012. Only gross national product (GDP) of Qatar outgrows that of Saudi Arabia within the six-nation grouping of the Gulf Cooperation Council.

- Writer is a member of the parliament in Bahrain