A strategic shift in regulating street vendors
In a strategic move aimed at restructuring one of the most important sectors of the informal economy, the Ministry of Municipalities and Housing announced the launch of a national, scientific, and sustainable model for regulating street vendors in various cities across the Kingdom. This initiative, overseen by Her Royal Highness Princess Najoud bint Hathloul bin Abdulaziz, aims to move this sector from a realm of individual efforts and temporary solutions to a structured institutional framework that guarantees and supports vendors' rights, while simultaneously enhancing the quality of life and the urban landscape of Saudi cities.
Historical background and past challenges
Street vendors have long been an integral part of the social and economic fabric of Saudi cities, providing a vital source of income for many families and offering goods and services at affordable prices. However, the lack of clear regulatory frameworks has led to numerous challenges over the years. A major one is the proliferation of unregulated street vending, which disrupts traffic flow and obstructs pedestrians. Furthermore, the absence of oversight has sometimes raised concerns about public health and product safety, contributing to the phenomenon of "visual pollution," which the Kingdom is working to address comprehensively within its Vision 2030 quality-of-life programs.
The importance of the initiative and its developmental dimensions
The significance of this national model lies in its reliance on a scientific methodology developed in partnership with universities and specialized research centers. This collaboration ensures that the proposed solutions are based on realistic studies of urban needs and the nature of vendors' work, thus guaranteeing their sustainability and effectiveness. The Ministry has developed an integrated system that includes updating legislation and simplifying regulatory procedures, with the aim of creating a safe and organized work environment. A key feature of the initiative is the launch of pilot projects for organized "municipal incubators" in several cities. These are dedicated and equipped sites that provide vendors with a modern and stable work environment, eliminating haphazard practices.
Expected economic and social impact
This initiative is expected to have wide-ranging positive impacts. Economically, integrating street vendors into the formal economy will enhance transparency, enable them to access financial and insurance services, and open new avenues for the growth of their small businesses. Socially, regulating the sector provides social protection for this group, strengthens their sense of stability and job security, and particularly supports the most vulnerable members of society. Furthermore, building accurate databases of vendors will help target government support programs more efficiently and effectively, ensuring that aid reaches those who need it most.
Alignment with the Kingdom's Vision 2030
The goals of this initiative directly align with the objectives of Saudi Vision 2030. It contributes to improving the quality of life by enhancing the urban landscape of Saudi cities, making them more attractive and organized. It also supports the pillar of a "thriving economy" by empowering small and medium-sized enterprises (SMEs), encouraging entrepreneurship, and transforming informal economic activities into productive sectors that contribute to the GDP. Princess Najoud bint Hathloul emphasized that these efforts are laying the foundation for a new phase of sustainable economic empowerment, with future plans to expand successful models across all regions of the Kingdom to ensure the continuity of their developmental impact.
