Saudi Arabia: A scientific model for regulating street vendors and supporting the economy

The street vendor sector in Saudi Arabia witnessed an unprecedented strategic transformation in 2025, as the Ministry of Municipalities and Housing spearheaded a regulatory initiative that moved this issue from temporary solutions and individual efforts to a more sustainable, institutional framework. This step comes as a culmination of concerted efforts aimed at integrating the informal economy into the national economic system, thereby guaranteeing the rights of vendors and preserving the urban landscape.

From randomness to institutional organization

The issue of street vendors has long posed a developmental challenge in many cities, previously associated with notions of disorder and visual pollution. However, a new initiative, under the direct supervision of Her Royal Highness Princess Najoud bint Hathloul bin Abdulaziz, has fundamentally changed this stereotype. This activity has been integrated into the formal economic fabric, contributing to increased compliance with municipal and health regulations, and supporting the most vulnerable groups in ways that preserve their dignity and ensure the sustainability of their income sources, in line with the objectives of the Kingdom's Vision 2030 and the Quality of Life Program.

Strategic partnership with universities and research centers

In a first-of-its-kind initiative, the ministry went beyond traditional administrative solutions and instead developed a national, scientific model for sector development. This model was based on broad strategic partnerships with universities and specialized research centers to study the realities and actual needs of cities and ensure that regulatory solutions align with the demographic and urban characteristics of each area. This framework included a comprehensive overhaul of legislative and regulatory aspects to provide a safe and organized working environment.

Municipal incubators: Smart solutions to visual pollution

One of the most significant outcomes of this transformation is the launch of pilot projects for what are known as "municipal incubators." These incubators represent a qualitative leap in addressing visual pollution , providing kiosks and spaces designed according to modern engineering and aesthetic standards. This eliminates haphazard street vending and adds aesthetic value to the urban landscape. These models have been implemented in several cities as a pilot phase, proving successful in providing stable operating environments for vendors.

Sustainable economic and social impact

The initiative went beyond the organizational aspect to create a tangible economic and social impact, represented by:

• Building accurate databases: This helped direct government support to those who actually deserve it and increased the efficiency of future planning.
• Economic empowerment: Transforming vendors from practitioners of unregulated activity into small entrepreneurs who contribute to the commercial movement.
• Strengthening partnerships: Integrating the non-profit and investment sectors to finance and operate these incubators, thus ensuring their sustainability.

Princess Najoud bint Hathloul affirmed that the achievements of 2025 lay the foundation for a new phase of “sustainable organization,” noting that the coming period will witness an expansion of these successful models in cooperation with the municipalities in various regions, to ensure the continuity of the developmental impact and to transform previous challenges into promising investment opportunities that serve the national economy.