At the beginning of October, 77 companies were authorized to provide Umrah services in Uzbekistan. However, due to tightened licensing regulations, including a mandatory reserve fund of $1 million, the number of eligible service providers has drastically decreased. Despite this, the committee clarified that other firms meeting the requirements could still apply for licenses.
The 12 successful companies include six based in Tashkent, three in Namangan, and one each in Khorezm, Fergana, and Andijan regions. All licensed firms have deposited $1 million or its equivalent in UZS into a designated reserve fund, ensuring financial stability and service quality.
New licensing conditions
The Committee on Religious Affairs, designated as the licensing authority in October 2024, introduced more stringent conditions to improve the quality of Umrah pilgrimage services. These include:
- Collaborating with airlines with at least two years of experience,
- Prohibiting the organization of services through third countries, and
- Mandating the reserve fund deposit.
Additionally, only licensed firms are authorized to organize Umrah activities, with unlicensed operators facing fines of up to 200 times the baseline calculation amount (BHM).
Committee representatives emphasized that licenses are granted without an expiration date and strictly regulate operational areas. Firms offering unauthorized services or conducting activities outside their approved locations are subject to penalties.
Impact on the industry
The tightened regulations have posed challenges for local tour operators, with many describing the $1 million reserve requirement as a significant financial burden. Kun.uz reports that some tour operators and government officials have expressed concerns about the impact of these measures on small and medium-sized businesses.
These developments follow reforms initiated in late 2022, which partially allowed tourism companies to organize Umrah pilgrimages. However, starting from November 1, 2023, tour operators were required to meet several new conditions, including hiring certified Islamic scholars as group leaders and ensuring compliance with aviation standards.
