Saudi Arabia has shown once again that it is committed to innovation and inclusivity in the field of religious pilgrimage with this ground-breaking move. The fintech startup UmrahCash, situated in Riyadh, has obtained a $500,000 investment from Adaverse Venture Fund. This move is a big step toward modernizing the centuries-old Umrah tradition and helping pilgrims, especially those from developing countries, who struggle financially.
Using technology to improve the traditional Umrah and Hajj industry, UmrahCash, a Jeddah-based company, seeks to address these issues. The platform makes it simple to access Saudi Riyals in Jeddah, Medina, and Mecca. Once they arrive in the Kingdom, pilgrims can pay with Saudi Riyals from their home countries.
An unparalleled increase in foreign Umrah pilgrims visiting Saudi Arabia occurred in 2023. There were 26,856,833 Umrah performers welcomed in total, which is an 8.7% increase from the year before. 13,550,593 of them were foreign pilgrims, a staggering 61.8% increase and a significant increase over the previous record of 8.5 million in 2019. Interestingly, most of these foreign pilgrims are from developing economies.
This significant expansion is in line with Saudi Arabia’s Vision 2030 objectives, which seek to improve pilgrims’ experiences and increase the nation’s ability to receive them. The Kingdom has spent more than $1.3 billion building infrastructure at sacred locations to handle this growth.
The significance of technology in enhancing the Hajj and Umrah experience has been underscored by Saudi Arabia’s Minister of Hajj and Umrah, Dr. Tawfiq Al-Rabiah. He reaffirmed the support of professional services and technology solutions in the industry in January 2024 on behalf of his ministry.
Even with Saudi Arabia’s improvements to the pilgrim experience—such as the introduction of sophisticated financial technologies and the simplification of visa procedures—many pilgrims from developing nations still encounter severe financial difficulties.
Travelers from nations such as Pakistan and Nigeria frequently encounter difficulties obtaining Saudi Riyals or are forced to buy them through unofficial networks at exorbitant prices. The current procedure usually entails traveling with large sums of cash, exchanging local currency for US dollars in their home countries, and then exchanging it again for Saudi Riyals when they arrive. In addition to adding to the expenses, this multi-step process increases the risk of security breaches and unnecessarily stresses out what ought to be a spiritual journey.
Founded in Jeddah, UmrahCash aims to address these issues by transforming the conventional Hajj and Umrah market through the use of technology. Through the platform, pilgrims can pay for their journey in their home countries and receive Saudi Riyals when they arrive in the Kingdom, making access to Saudi Riyals in Mecca, Medina, and Jeddah easier.
