Minister of Economic Development and Trade Mohamed Saeed has defended the decision to allow Hajj Corporation to enter the guesthouse business, despite growing public concern over the state-run company’s new direction.

Speaking during Tuesday’s sitting of the People’s Majlis, Saeed said the corporation has the opportunity to engage in business transactions, adding that the government welcomes initiatives that promote business activity. His remarks came in response to a question from MP For North Galolhu constituency Mohamed “Kudoo” Ibrahim, who asked whether the government had taken any measures to prevent Hajj Corporation from venturing into the guesthouse industry.

Saeed claimed that the potential impact of Hajj Corporation’s entry into the sector could only be assessed after conducting a study. However, his comments appeared to sidestep the central question of whether the government supports or intends to regulate the corporation’s involvement in private tourism ventures.

Hajj Corporation has been developing a project to launch halal tourism in Maafushi island of Kaafu atoll. Islamic Minister Dr. Mohamed Shaheem Ali Saeed was also questioned in the parliament about the project but similarly avoided giving a clear response, merely noting that it was important for the corporation to invest.

The state-owned company announced its plans to begin halal tourism on 6 November 2024. However, just weeks later, the Finance Minister publicly stated that the venture was unlikely to yield positive results. At the time, Minister Shaheem also expressed disapproval of the plan, but his stance appears to have since shifted.