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What are they selling, you ask? It's a special Ramadan lantern called a "fanoose." They--along with Christmas-style colored lights--are the main form of Ramadan decoration. People hang them from their apartment balconies, in front of their buildings, some even from their rear view mirrors. There's no real religious significance, and no one knows for sure where the tradition came from, but it definitely adds to the festiveness of the holiday. Even the Coke cans have pictures of a fanoose this time of year.
The typical fanoose might be 18 inches tall, made of tin and colored glass. But they come in all sizes, from small plastic key-chain models to 6-foot-tall ones that are too heavy to hang up. And they're made of really cheap materials like recycled tin cans so everybody needs a new one every year. (Job security rules here).