Shakeel: Hajj Corporation's Yearly Loss Stands at MVR 40 Million, Aiming for Profitability
The Hajj Corporation Managing Director Mohamed Shakeel has revealed that the organization is operating at an annual loss of MVR 40 million.
Efforts to Improve Financial Situation
He expressed optimism that new initiatives aimed at increasing revenue could turn the corporation profitable in the near future.
During a program on State TV, Shakeel noted that the corporation has been running at a loss for the past eleven years.
He highlighted that the current government is making efforts to rectify the situation.
Redefining the Corporation's Role
Shakeel explained that the corporation had previously been managed contrary to its foundational principles.
He emphasized that the corporation's primary role is to ensure that citizens can perform their Hajj pilgrimage at reasonable costs while exploring revenue-generating options through payments made by pilgrims to further lower costs for future attendees.
In contrast, he stated that the corporation had operated as merely an agent organizing Hajj and Umrah trips, resulting in the accumulation of significant debts.
Financial Challenges and Initiatives
The annual losses have ranged between MVR 30 to 40 million, according to Shakeel.
He further revealed that the current pilgrimage prices were set years ago, while taxes imposed by the Saudi government have increased, airline ticket costs have risen, and accommodation expenses have also surged.
"However, when I assumed leadership, none of these factors seemed to be taken into account," Shakeel remarked.
Despite the corporation's historical dependence on state funding, he asserted that ongoing efforts aim to alter this dependency.
Upon his appointment, President Dr. Mohamed Muizzu had urged Shakeel to transform the corporation into a profitable and financially stable entity.
Real Estate Ventures
Shakeel believes that improved management is essential for the corporation to provide optimal Hajj services.
This is why they are currently exploring opportunities in the real estate sector, he explained.
Recently, the corporation announced plans to develop a housing project in Hulhumale', with design work assigned to Fahi Dhiriulhun Corporation.
In May, Hajj Corporation purchased two plots of land in Hulhumale'. One plot is designated for the housing project, while the other will host a nine-story office complex.