The Ministry of Economy and Commerce launches new initiative to regulate street vendors’ businesses

November 23, 2016


 The initiative creates a stimulating investment environment for the private sector and entrepreneurs which will positively impact the national economy.Street vendors practice their business without the need for a shop or a commercial license.The initiative specified the general licensing conditions which stipulate that the applicant should be least 18 years old, obtain a written approval from the employer in case he is a foreigner, have a health certificate from the Ministry of Public Health, and a certificate of good conduct (clean criminal record), in addition to the approval of competent authorities depending on the business activityThe same license applies for both the street vendor and the trolley for the sale of goods, craftwork, fruits and vegetables, canned food, hot and cold food and beverages, and services The street vendor’s activity should be restricted to a specific geographical area in case of using a vendor trolley.The annual licensing fee for the vendor is fixed at QR500 and at QR1,000 for the trolley.The vendor using small trolleys should not obstruct the flow of traffic or movement of pedestrians.The trolleys should meet the health and environment specifications.The trolleys should be kept away from the entrances of schools, hospitals and places of worships and other areas specified by the ministry.The licensed vendor is required to show his ID and commercial licence on request from competent authorities.
 
Within the framework of its efforts to regulate the business environment and create a stimulating investment environment for the private sector and entrepreneurs and based on decision No 243 for 2016 of the Minister of Economy and Commerce on the regulations and conditions for the licencing of street vendors, the Ministry of Economy and Commerce has launched a new initiative to regulate the work of street vendors by specifying permissible activities, requirements and standards and conditions for issuing a licence.
The initiative aims to regulate the practice of commercial activities, improve the quality of services offered to the public and guarantee compliance with laws and regulations governing the various commercial activities in the country.
The initiative outlined the general description of a street vendor, defining him as a person who engages in a commercial activity and does not require a shop or an office to obtain a licence. Street vendors are classified into two categories. The first category includes individual street vendors who sell items such as flowers, newspapers, gifts, books, craftwork and other things, or offer services such as a plumber, electrician, watch repairer and similar jobs. The other category comprises those who use small trolleys such as non-automated bicycles to sell goods as well as vegetables and fruits, packed foods, beverages, and hot and cold meals at passageways, public roads, or various areas.
A single licence is enough for the vendor as well as the trolley, according to licensing rules, to practice commercial activities which comprise selling goods, craftwork, fruits and vegetables, canned food, hot and cold food and beverages, and services
Qualifications for street vendors to obtain a license
The Ministry of Economy and Commerce specified the qualifications for street vendors to obtain a license. To obtain a licence, the applicant should be at least 18 years, obtain a written approval from the employer in case of expatriates, and have a health certificate from the Ministry of Public Health, and a certificate of good conduct (clean criminal record), in addition to the necessary approvals from the department concerned with the required activity.
General Regulations for street vendor’s license
Additionally, the initiative comprised general regulations for street vendor’s license. The street vendor is allowed to practice a single activity that is limited only to a certain area. Street vendors who are using trolleys should not obstruct traffic or pedestrian movement. Additionally, the trolleys and all utilized equipment should meet the health and environment specifications and should be kept away from the entrance of schools, hospitals and places of worships and other areas specified by the ministry. Street vendor should adhere to the specific conditions and regulations according to the type of license required to practice his commercial activity. Furthermore, the licensed vendor is required to show his ID and commercial licence whenever requested from the competent authority. Licensed street vendors should report to the authorities in case they lose their licence which should also be returned in case of expiry or cancellation.
Street Vendor’s Obligations
The ministry specified the standards that shall be considered while deciding on the location and the trolley. Street vendors should maintain the cleanliness and tidiness of their operation areas, avoid intersections and pedestrian passes, and maintain an adequate distance from the entry and exit points of buildings. Additionally, the designated location for a street vendor should be at a 20m distance from commercial outlets practicing the same activity. Further, in case of using a private property, a prior written approval from the owner has to be obtained. The annul licensing fee for the vendor is fixed at QR500 and QR1,000 for a small trolley.
The ministry calls all stakeholders from the private sector and entrepreneurs to adhere to the regulations and conditions regulating commercial activities practiced by street vendors and encourages them to provide a variety of innovative products and services through the initiative which will add commercial and positive value in the region.