New regulations for street vendors in Saudi Arabia: Everything you need to know

A step towards organizing the urban landscape and supporting entrepreneurs

In a significant regulatory step aimed at improving the urban landscape and supporting the small business sector, the Saudi Minister of Municipal and Rural Affairs and Housing, Majid bin Abdullah Al-Hogail, issued a decision approving the “Requirements for Street Vendors and Mobile Traders.” This decision establishes a clear regulatory framework for this vital sector, granting existing establishments a 180-day grace period to comply with the new requirements.

General context: Within the framework of the Kingdom's Vision 2030

This decision falls within the broader initiatives adopted by the Kingdom of Saudi Arabia to achieve the goals of Vision 2030, specifically the Quality of Life Program, which aims to improve the urban environment in Saudi cities and make them more attractive to residents and visitors. Street vendors have long been part of the informal economy, and with the move towards regulating all sectors, the Ministry seeks, through these regulations, to address visual pollution, ensure public safety, and provide a safe and organized commercial environment that supports Saudi entrepreneurs and opens new horizons for them to operate within the formal sector.

The importance of the decision and its expected impact

The decision is expected to have multiple positive impacts on both the local and economic levels. Locally, regulation will help curb haphazard practices that could negatively affect traffic flow and pedestrian safety. It will also raise the quality of products and services offered, particularly in the food sector, by imposing strict health standards. Economically, the decision represents a step towards integrating this sector into the formal economy, enhancing transparency, supporting small and medium-sized enterprises (SMEs), and creating new job opportunities in a structured and sustainable manner.

Key features of the new requirements

The new regulations cover multiple aspects to ensure comprehensive organization of the activity, including the following:

• Determining permitted and prohibited locations: The regulations allowed the activity to take place in public squares, parks, event venues, and investment sites, while prohibiting presence at road intersections, in front of traffic lights, government and security facilities, and disabled parking spaces to ensure that movement and services are not obstructed.
• Site and space requirements: The regulations stipulated that the available distance for pedestrians should not be less than 1.8 meters, with specific areas for entrances and vehicles to ensure that public spaces are not encroached upon.
• Visual identity and licensing: The ministry has obligated vendors to place clear commercial signs that include the name of the outlet owner and its activity, in addition to providing a unified electronic code (QR Code) to display licensing data instantly.
• Health and safety standards: The regulations imposed strict standards, particularly for food establishments, such as the use of rust-resistant surfaces, the provision of sinks connected to drainage tanks, and the prohibition of selling uncooked products like poultry and meat, as well as medicines and tobacco. They also emphasized the need for adequate refrigeration units and adherence to expiration dates.
• Mandatory equipment: The requirements stipulated the provision of electronic payment methods, a first aid kit, and foot-operated waste containers, along with adherence to general hygiene and insect control.

Corrective grace period and strict monitoring

The decision stipulates that existing establishments will be given a 180-day grace period from the date of its publication to rectify their situations and fully comply with the new requirements. Municipalities and local authorities across the Kingdom will be responsible for monitoring the implementation of these provisions and imposing penalties on violators in accordance with applicable regulations and bylaws, ensuring the achievement of the objectives of this regulation and the creation of an organized and safe urban environment for all.