Traders claim post-Haj sales have dropped considerably because of the fewer pilgrims allowed into Saudi Arabia and government's labor raids.

This was borne out by a recent survey by Umm Al-Qura University in Makkah showing a 31 percent drop in pilgrim spending this year to SR18 billion, compared to about SR26 billion last year.

Businesses selling electronic goods, prayers rugs, textiles and gold have all recorded a slump in sales, they say.

Affected shops include those in the popular Balad shopping district and other city stores. Many expatriate-run shops selling prayer rugs have closed because the workers fear the police will arrest them.

Many merchants also believe that the rising cost of Haj has been a major factor in the reduced spending. They say Asian pilgrims, their main clientele, are no longer buying electronic goods because they can find cheaper Chinese-made products at home.

Pilgrims from the Subcontinent are also not buying new televisions for the same reason. In addition, they are not purchasing emergency lights to deal with the regular power outages back home. Shops in Jeddah are not stocking the gadgets any longer.

Jafer, a salesman at a leading electronic showroom in Balad, said: "In the past we did not even have time to answer the telephone, now we're sitting watching television all day."

Othman Hussain, a salesman at a leading electronic distributor in Balad, said sales of electronic items have dropped because of the fewer pilgrims from Egypt, Turkey and Syria. He said some customers only bought iPods.