Lembaga Tabung Haji has to lease properties either for a short term or a long term in Mecca and Medina as foreigners cannot own real estate in the holy cities, said its group managing director and chief executive officer, Ismee Ismail.

He said hence, Tabung Haji was always looking for opportunities to lease properties to accommodate Malaysian pilgrims in Mecca and Medina during the haj pilgrimage.

Tabung Haji signed long-term lease deals (up to 25 years) of two properties in Medina and another in Mecca in 2008 and 2009 respectively as well as renting several buildings during the pilgrimage, he added.

“The properties acquired can also be used by umrah pilgrims during the haj off-season,” he said, adding that under the Saudi Arabian law, those who signed long-team lease deals were owners of the properties.

He said previously, Tabung Haji leased properties only during the haj season for the pilgrims.

Ismee said the long-term lease deals would not only ensure a pleasant stay for pilgrims, but also could reduce the cost of the Malaysian haj pilgrimage which was the lowest in South-East Asia.

He said Tabung Haji strived to ensure Malaysian pilgrims could stay closer to Masjidil Haram in Mecca, but the hotel rate would cost more it gets closer to the Grand Mosque.

“The Tabung Haji investment department is always studying Saudi Arabia’s legislation and regulations to find new opportunities for the benefit of pilgrims in years to come,” he said.

Rapid development taking place in Mecca since 2007 has doubled the accommodation cost in Mecca from what Tabung Haji used to pay in 2007 and 2008, he said, adding that however, rental of properties in Medina was quite stable.

He said in Medina, Malaysian pilgrims would be placed 150 metres from the Nabawi Mosque while in Mecca, they would stay between 600 metres and 950 metres from the Grand Mosque.

“We’ll try to avoid pilgrims from staying more than one km away from the Masjidil Haram.

“Despite massive development in Mecca with many hotels and buildings being demolished, we are still able to get haj accommodations within 950 meters from the Grand Mosque,” he said.

- Bernama