Introduction
This guide aims to clarify the conceptual and methodological framework of International Trade in Services Statistics and to simplify the associated key concepts. In addition, it tracks the trade in services between residents and non-residents, covering all related receipts and payments across service categories, in accordance with the Extended Balance of Payments Services Classification (EBOPS 2010) and the Balance of Payments Manual (BPM6). These statistics contribute to covering the main services item in Saudi Arabia’s external accounts. They also provide policymakers and decision-makers with accurate data to measure the volume of international trade in services, as well as to analyze its contribution to the national economy and the growth of Saudi Arabia’s GDP.
1. Overview of International Trade in Services Statistics in the Kingdom of Saudi Arabia
Since 2005, the Saudi Central Bank has been publishing data on Saudi Arabia’s services exports and imports. In 2023, the General Authority for Statistics (GASTAT) adopted this product for the first time in the implementation of the Royal Decree on the governance of trade exchange in service products, which mandates conducting a survey on services trade. Trade in services encompasses the cross-border exchange of activities such as transport, travel, communications, and financial and consulting services. This product represents a qualitative addition, as it covers a vital aspect of international trade that is gaining global significance. Furthermore, it contributes to enhancing transparency and supporting decision-makers in line with international best practices.
2. Domain and coverage of International Trade in Services Statistics
The scope of International Trade in Services Statistics encompasses all economic transactions of services between the residents and non-residents of Saudi Arabia, in accordance with internationally recognized standards and classifications, such as the Extended Balance of Payments Services Classification (EBOPS 2010). These statistics cover the main service categories, including transport, travel, communications, computer and information services, financial services, intellectual property rights, and professional and consulting services, among others. GASTAT relies on a combination of administrative records and field surveys of economic establishments to measure service exports and imports more accurately. This comprehensive scope contributes to the provision of highly reliable data that reflects the true scale of trade in services and supports the needs of policymakers, researchers, and international organizations.
3. Methodology for compiling International Trade in Services Statistics
GASTAT adopts a statistical methodology based on international best practices, in accordance with the Balance of Payments Manual (BPM6) and the EBOPS 2010 classification, to ensure the accuracy and reliability of the results. The methodology includes the following stages:
- Frame and sample design
• A comprehensive sampling frame was designed to encompass all economic establishments.
• A sample was selected, including all large and medium-sized establishments, while small and micro establishments were selected using an international statistical approach to ensure comprehensiveness and representativeness.
- Data collection
• Data are primarily collected through the International Trade in Services field survey, targeting establishments, using computer-assisted telephone interviews (CATI), computer-assisted web interviews (CAWI), and computer-assisted personal interviews (CAPI).
• Some items are supplemented using administrative records, such as travel data and government services data.
- Data quality and processing
• Missing and outlier data are processed using statistical methods such as historical data, the median, and the mean.
• The interquartile range (IQR) method is used to detect outliers and address them using internationally recognized statistical approaches.
• Performing internal coherence checks and linking results to previous time series to ensure coherence over time.
- Data analysis and dissemination
• Key indicators are derived, including the volume of services exports and imports, and the surplus or deficit in the services balance.
• Results are published through quarterly and annual reports to meet the needs of policymakers and researchers.
4. Users of the International Trade in Services Statistics:
International trade in services statistics is used by various individuals and entities both inside and outside Saudi Arabia, including:
- Economists, financial market analysts, researchers, and academics.
- The Saudi Central Bank (SAMA) and the Public Investment Fund (PIF).
- Saudi government entities, such as: The Ministry of Commerce, the Ministry of Investment, the Ministry of Economy and Planning, the Saudi Export Development Authority (SAUDI EXPORTS), and the Saudi General Authority for Foreign Trade (GAFT).
-GDP statistics.
- International organizations, such as the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO).
5. Concepts of International Trade in Services:
5.1 Services:
The production of intangible economic outputs in response to consumer demand.
5.2 International Trade in Services:
The international trade in services product collects information on the value of services exchanged between residents and non-residents in the economy.
5.3 Residence concept:
The residence of an institutional unit is the economic territory with which it has the strongest connection, constituting the center of its main economic activities. Each institutional unit has only one residence, determined by its main center of economic interest.
5.4 Resident:
Any individual, company, or other institution located within the Kingdom of Saudi Arabia, including any Saudi-based subsidiaries, branches, or sales offices. It also includes individuals who reside in or intend to reside in Saudi Arabia for one year or more.
5.5 Non-resident:
Any individual, company, or other institution located outside Saudi Arabia, including any subsidiaries, branches, or sales offices abroad. It also includes individuals who reside or intend to reside outside Saudi Arabia for one year or more.
5.6 Receipts:
Fees received for services provided to non-residents.
5.7 Payments:
Fees paid for services provided by non-residents.
6. Service categories, examples, and explanations:
This section of the guide provides details on the terms used in this product.
6,1 Manufacturing services:
Includes processing, assembly, labeling, and packaging activities for establishments that do not own the goods, such as oil refining, gas liquefaction, electronics assembly, and clothing. This excludes the assembly of prefabricated constructions (included under Construction) and incidental labeling and packing for transport (included under Transport services).
6,2 Maintenance and repair services:
Maintenance and repair work performed by residents on goods owned by non-residents, and vice versa.
Maintenance and repair work includes: the repair of vessels, aircraft, and other transport equipment.
6,3 Transport services:
The transport of people and objects from one location to another, along with related supporting and auxiliary services, and the rental of carriers with crews. This category also includes postal and courier services for letters and parcels. Service providers may subcontract to utilize the services of other operators in delivering part of the final service. These services are recorded based on the total value. For example, a courier may subcontract with one or more operators to provide the service.
Maritime transport:
Includes all goods and passenger transport services carried out by sea vessels.
Air transport:
Includes all air transport services for goods and passengers carried out by aircraft.
Road transport:
Includes international goods transport by trucks and international passenger transport by buses. Passenger transport services include all services provided by residents to non-residents regarding international transport carried out by non-residents for residents (imports), as well as passenger services provided within the economy by non-residents (i.e., domestic trips). It also includes fares and other expenses related to passenger transport, including any taxes levied on passenger transport services, such as Sales Tax or VAT. This covers charges paid as part of package tour costs, such as excess baggage, vehicles, and personal effects accompanied by the passenger, food, beverages, and other items purchased on board. Furthermore, it includes fees paid by carriers to travel agencies and other ticket service providers, as well as rentals paid by residents to non-residents, or vice versa, for the chartering of vessels, aircraft, buses, or other commercial vehicles with crew for limited periods (e.g., a single trip) for the purpose of passenger transport.
Other means of transport:
It includes space transport, railway transport, pipeline transport, electricity transmission, and other supporting and auxiliary transport services.
Postal and courier services:
These services include the pickup, transport, and delivery of letters, newspapers, magazines, brochures, other printed materials, parcels, and packages. They also cover postal office services, such as the sale of stamps and mailbox rental services.
6,4 Travel services:
Refers to a range of goods and services consumed by non-residents in the country they are visiting.
Business purposes:
Transport crew members who stop over or stay overnight during their journey, employees of international organizations on official missions, self-employed individuals, or travelers on business trips.
Personal purposes:
Such as spending holidays, participating in recreational and cultural activities, visiting friends or relatives, or performing Hajj.
Health-related purposes:
Expenditures on medical and other health-related services, as well as accommodation and local transport incurred by travelers for medical treatment purposes.
Education-related purposes:
Expenditures on tuition, food, accommodation, local transport, and health services incurred by non-resident students.
6,5 Construction services:
This category includes the construction, management, renovation, repair, or expansion of fixed assets in the form of buildings, engineering improvements to land, and other structures such as roads, bridges, and dams. It also includes installation, assembly, site preparation, general construction-related work, and specialized services such as painting, plumbing, and demolition. Construction abroad includes construction for non-residents carried out by enterprises resident in the compiling economy (exports), as well as the goods and services purchased by those enterprises from residents of the host economy (imports). Whereas construction in the compiling economy refers to construction carried out for residents of the compiling economy by non-resident construction enterprises (imports), while the goods and services they purchase within the compiling economy from its residents are treated as (exports). These two sub-components of construction include work performed by the enterprises' employees on construction projects at sites located outside the enterprises' economic territory. Payments for goods and services in the host economy include expenditures by the construction enterprise on locally supplied items, goods, and services, as well as those imported into that economy, provided that such goods and services are intended for use at the construction site. Goods and services purchased in the economy where the construction work takes place are recorded under construction services. International transactions arise when a building owned by an embassy, consulate, military base, or international organization is sold to or purchased by a resident entity in the economy where the building is physically located. Construction transactions for structures in areas under shared jurisdiction between the two economies are conducted. Data are collected for construction abroad and construction in the Kingdom of Saudi Arabia.
6,6 Insurance and pension services:
Insurance services include the provision of various types of insurance by resident insurance companies to non-residents, and by non-resident insurance companies to residents. Insurance services are classified into direct insurance, reinsurance, supplementary insurance, retirement insurance, and standardized insurance services. Direct insurance includes life insurance, property insurance, and other forms of insurance. Pension and standardized guarantee services are classified separately under pensions and standardized guarantees. Transactions carried out by insurance companies include receiving subscription premiums, paying compensation, and investing funds. They also include receiving contributions, paying benefits, and investing funds. Cross-border insurance transactions are particularly prevalent in specialized markets such as reinsurance and in the coverage of high-value insured assets, such as ships and aircraft. Non-life insurance includes accident insurance, health insurance, term life insurance, marine insurance, aviation insurance, other transport-related insurance, fire and other property damage insurance, theft insurance, general liability insurance, and credit insurance. Goods insurance services include insurance on goods being exported or imported. It also provides coverage against theft, damage, or loss of goods. Ancillary insurance services include agency and broker commissions, agency services, insurance and pension advisory services, claims assessment and settlement services, actuarial services, salvage management services, regulatory services, and monitoring services related to claims and recoveries. As for standardized guarantee services, they represent a set of identical financial guarantees, issued in large numbers, typically in small amounts, such as export credits and student loans.
6.7 Financial services:
Financial services include financial intermediation and auxiliary services. These services typically comprise those provided by banks, other financial intermediaries, and supporting services. They also include services provided in the context of transactions in financial instruments, as well as other services related to financial activities. These include deposits and lending, letters of credit, credit card services, fees and expenses related to financial leasing and factoring, debt guarantees, and payment settlement services. In addition to financial advisory services, the deposit of financial assets or bullion, financial asset management, monitoring and facilitation services, liquidity provision services, non-insurance risk-bearing services, merger and acquisition (M&A) services, loan rating, stock exchange services, and credit services.
6.8 Intellectual property services:
Intellectual property services include payments for the use of intellectual property rights, such as patents, trademarks, copyrights, designs, industrial models, trade secrets, and franchises. They also cover payments for licenses to produce or distribute products derived from original or authorized copies, such as printed books and pamphlets, computer software, films, sound recordings, and related rights, such as live performance rights for concerts and television programs, as well as cable or satellite broadcasting services.
6.9 Communications, computer, and information services:
Computer and communications services are defined by their use rather than by the mode of delivery. Communication services include broadcasting or transmission of voice, images, data, and other information via telephone, telex, telegraph, radio, television networks through cable and satellite, email, and fax. They also include hosting meetings via computer networks, as well as providing support services.
This category also includes mobile communication services, network maintenance services, and network access services, including internet connection services.
Computer services are classified into software and other computer services. Computer software includes the purchase and sale of originals and proprietary rights of software systems and applications. It also includes the sale of customized software and related usage licenses, as well as the development, production, supply, and documentation of on-demand software, including operating systems manufactured according to user specifications. Furthermore, it includes general-purpose software made available for download or through electronic means, either for a one-time license fee or for periodic licensing fees, as well as licenses for general-purpose software provided on a storage medium, such as CD-ROMs, which also involve periodic usage fees. This category also includes collaborative productivity software for businesses and computer game applications.
Other computer services include advisory and operational services for computer hardware and software. This includes computer service management under contracts, hardware and software installation, including mainframe computers and central processing units, maintenance and repair of computers and related equipment. It also covers data recovery services, advisory and support services, data processing and hosting services, system maintenance, and other support services within the framework of other computer services.
As for information services, they are divided into news agency services, which include providing news, photographs, and articles on specific topics, and other information services. They include database services such as database design, data and database storage and dissemination, including directories and mailing lists, whether online or via magnetic, optical, or printed media, as well as providing search portals, including search engines that index online content. This category also covers paid direct subscriptions to newspapers and magazines, whether delivered by mail, electronically, or by other means. Content downloaded from a computer is not considered computer software, audio, visual, or a related product.
6.10 Other business services:
Other business services are classified into three sub-components: research and development services, professional and management advisory services, technical and trade-related services, and other business services.
Research and development services include basic and applied research, as well as experimental development of new products and processes. They include activities in the natural sciences, social sciences, and humanities, and the provision of either specialized or general research and development services.
Professional and management consulting services are divided into legal, accounting, management advisory, and public relations services, as well as advertising, market research, and public opinion polling services. They include legal advisory services, representation in any statutory, legal, or judicial proceedings, and the drafting of legal documents and instruments. They also include accounting and auditing services, bookkeeping and tax advisory, as well as recording of commercial transactions for companies through examination of accounting records, alongside management advisory, and public relations. In addition to business and comprehensive planning, organizational structuring and control, management accounting operations, market and human resource management, production management and project management consulting, as well as other services related to enhancing client image and relations with public institutions and others.
As for other technical and trade-related business services, they are divided into the following five sub-categories:
• Architectural, engineering, scientific, and other technical services.
• Waste management and remediation services, as well as agricultural and mining services.
• Rental and leasing services.
• Trade-related services.
• Other business services not classified elsewhere.
6.11 Personal, cultural, and entertainment services:
Personal, cultural, and entertainment services include the following:
Audiovisual and related services, such as audiovisual activities (films, music, radio, and television) and services related to performing arts. Audiovisual services include the production of animated films (films, video tapes, and films recorded on electronic media), live and recorded radio and television programs, music recordings, as well as live performances included under audiovisual services. They also cover receipts or payments for the rental of audiovisual and related materials. Furthermore, they cover costs associated with access to encrypted television channels (such as cable or satellite channels). Performing or related artistic services include those provided by performers, authors, composers, and sculptors.
Other personal, cultural, and recreational services, classified into:
• Health services.
• Education services.
• Heritage and entertainment services.
• Other personal services.
Health services include general and specialized human health services provided by hospitals, doctors, nurses, medical technicians, and similar professionals, as well as laboratory technicians and similar services, whether provided remotely (through telemedicine or remote diagnosis) or on-site. Diagnostic imaging services, pharmaceutical services, radiology services, and rehabilitation services are included in health services. Health services provided to non-residents in the service provider's territory (as they fall under travel services) and veterinary services (as they are part of services related to agriculture, forestry, and fishing) are excluded.
Educational services include services related to all levels of education, whether delivered through correspondence, television, the internet, or provided by teachers and others who deliver services directly in the host economy. Education services provided to non-residents in the territory of the service provider are excluded, as they are classified under travel services.
Heritage and entertainment services include services related to museums and other cultural, sports, and entertainment activities, excluding activities that involve individuals outside their residence economy, as these are classified under travel services. Other personal services include membership fees for professional unions, domestic services, etc.
6.12 Government services:
Government services include all products and services provided to and consumed by embassies, consulates, official missions, and government entities, both within and outside the Kingdom of Saudi Arabia. They also cover goods and services produced or provided by government entities and public institutions, in addition to goods and services provided to government employees and their family members. Government goods and services can be divided into two categories: Goods and services provided to foreign government entities, official missions, and military bases, as well as government goods and services supplied to other foreign entities not classified elsewhere, such as embassies and international organizations located within the Kingdom of Saudi Arabia. This category also includes exports of government goods and services, such as products and services provided by Saudi embassies, missions, military bases, defense agencies, and other Saudi government entities located outside the Kingdom of Saudi Arabia. It also includes imports of government goods and services not classified elsewhere, which cover the purchase of goods and services by foreign embassies and missions located in the Kingdom of Saudi Arabia or from other regions. Government services also include goods and services provided to public sector employees, military personnel, and their family members, and cover all payments made by the government for goods or services received by workers in the government economy, such as education, health, and social services. They also include other government services, such as aid provided to international organizations, and the issuance of licenses, permits, and visas by official authorities, provided that the transaction occurs between a resident and a non-resident in accordance with the Balance of Payments concepts (BPM6).
7. User access
One of GASTAT's objectives is to better meet client needs by providing the publication results immediately once the International Trade in Services Statistics Survey is released on an annual and quarterly basis.
Customer questions and inquiries regarding the publication and its results are also received through various communication channels, such as:
• GASTAT official website: www.stats.gov.sa
• GASTAT official email address: info@stats.gov.sa
• Client support e-mail address: info@stats.gov.sa
• Official visits to GASTAT’s official head office in Riyadh or one of its branches in Saudi Arabia.
• Official letters.
• Statistical telephone: (199009).
8. References
The Manual on Statistics of International Trade in Services (MSITS) issued by the United Nations
https://unstats.un.org/unsd/tradeserv/tfsits/msits2010/docs/MSITS%202010%20M86%20(A)%20web.pdf
The Balance of Payments and International Investment Position Manual (BPM6) issued by the International Monetary Fund
https://www.imf.org/~/media/Websites/IMF/imported-publications-loe-pdfs/external/arabic/pubs/ft/bop/2007/bopman6a.ashx