Methodology and Quality Update

Latest Update on Methodology and Quality

17\09\2025

Statistical Presentation

Data description

The Foreign Direct Investment Survey presents data on foreign investment flows in the Kingdom of Saudi Arabia.
Foreign Direct Investment Survey is a survey conducted to collect data on the basic characteristics as follows:
•    Total foreign flows (in flow and out flow).
•    Net FDI flows.
•    Charts and analytical reports
•    Displays in tables.

Classifications

The following classifications are applied in Foreign Direct Investment Survey: 
The National Classification for Economic Activities(ISIC4)
It is a statistical classification based on the International Standard Industrial Classification of All Economic Activities (ISIC4), used to describe the productive activities of an establishment. 
National Code of Countries and Nationalities (3166 ISO – codes Country):
A statistical classification based on the international standard  (ISO 3166_Country codes), which is a standard issued by the International Organization for Standardization (ISO of the UN), and this classification gives numeric and literal codes for the world’s (248) countries, based on the classification of countries.  
The classification in the Foreign Direct Investment Survey is used to categorize individuals into Saudis and non-Saudis.
Metadata are collected through interviews, so that outputs can be produces in accordance with all relevant classifications.
Classifications are available on GASTAT website:  www.stats.gov.sa

Statistical concepts and definitions

 Terminology and concepts for Foreign Direct Investment Statistics:
•    Country:
The enterprise's legal affiliation in terms of belonging to Saudi Arabia's economy.
•    Enterprise:
An institutional unit that works in the field of production. This definition might include the investment funds and other companies that bear assets and liabilities on behalf of groups of owners even if they operate in minimal or no production areas. The enterprise may be a non-profit or unlimited individual enterprise.
•    Investment:
Expenditure on capital assets over a period of time. This is made to achieve a net increase in the real capital of Saudi economy. Investment can be carried out either by individuals or companies or is financed by governments.
•    Foreign Investment:
Directing the savings of a certain economy within a geographical region to establish new real capital assets or own them in the economy of the Kingdom within one of its geographical regions.
•    Foreign Direct Investment:
An investment that reflects a long-term relationship and a permanent interest of economic entities that exist in economies other than the Saudi economy. This means that the foreign investor owns 10% or more of the shareholders' equity, which enables the foreign investor to exercise some kind of influence on the decision-making process in a way that serves its interests. Thus, this process is described as foreign direct investment.
•    Foreign Direct Investment Enterprises 
A project having a legal personality in which an investor residing in another economy owns 10% or more of the ordinary shares or the right to vote (management and decision-making). in relation to the project having legal personality. Foreign direct investment projects include entities defined as subsidiary entities or partner entities or projects having no legal personality that the investor wholly owns.
•    Direct Investor:
The foreign direct investor can be an individual, a company, a government, or a group of interconnected individuals or affiliated companies operating in a country other than the residence country of the foreign direct investor or the countries of foreign investors. This is contingent upon owning 10% or more of the common stock or voting power in that entity.
•    Portfolio Investment:
Investments in property securities or debt securities that are negotiable and tradable between enterprises of other economies with a percentage that is less than 10%.
•    Other Investment:
Foreign investments other than portfolio investments or foreign direct investments.
•    Reverse Investment: 
Reverse investment happens when the direct investment enterprise lends money or acquires stocks directly in the same enterprise, without having an equity of 10% or more of the voting power with that direct investor. If the investment happens with more than 10% of equity, it becomes direct investment not a reverse one.
•    Resident:
Any individual, establishment or organization residing in Saudi Arabia and want to reside in it for more than one year. 
•    Non-Resident:
Any individual, establishment or organization residing outside Saudi Arabia and want to reside in that country for more than one year.
•    Local Enterprise Group “LEG”:
Local Enterprise Group (LEG) refers to an investor and the legal entities under
that investor that are resident in Saudi Arabia. Non-resident entities are excluded.
•    Fellow Enterprises:
Limited enterprises where the direct investor holds more than 50% of voting shares and has the right to control the enterprise's decisions. subsidiary companies can be either wholly owned when the foreign direct investor holds 100% of its shares, or subsidiary when the direct investor owns 50% of its shares. In case the investor owns 10% to 50% of the shares, the enterprise is not considered a fellow one but an associate enterprise. The term " Subsidiary or Affiliated enterprise" refers to all types of these enterprises.
•    Affiliates:
Enterprises under the control of one foreign investor directly or indirectly. The affiliate does not have control or influence on another affiliate (which means it owns 10% of another affiliate's equity).
•    Branch:
A branch is wholly owned by a foreign direct investor. It is a registered establishment that has a complete set of accounts and is able to aggregate an important set of accounts from an economic and legal perspective.
•    Ultimate Controlling Parent "UCP “:
The ultimate controlling parent (UCP) investor is the one that is at the head of a
chain of companies and directly or indirectly controls all the enterprises in the chain
without itself being controlled by another investor.
•    Voting Power
The control measure in the company. In general, ordinary shares provide voting power when decisions are made on the basis of one share (one vote), but voting power may differ from the percentage of shares when there are, for example, "gold or excellent shares" or double classes of shares with different voting power weights.
•    Financial Assets:
Everything that the establishment owns, and everything that represents a right for the establishment from others. Assets are divided according to their nature and the duration of the establishment's utilization into fixed or non-current assets, which are every tangible asset that the establishment owns with the aim of utilization in the long term over the establishment lifespan. and current assets which represent the establishment's rights that are owned for a short-term utilization during the fiscal year.
•    Liabilities:
Any financial right to others, if this right is for partners or shareholders and relates to capital, profits or reserves; it is called equity. If this right relates to others or to the partners' credited current account, it is called a liability. In this case, liabilities are divided according to the duration of their fulfillment into two categories: long-term liabilities, which are the liabilities to be paid to others over more than one fiscal year such as long-term loans, and Short-term or current liabilities, which the enterprise is obliged to pay during the fiscal year.
•    Debt Instrument:
Securities of certain value that are regarded as an investment pillar. The securities are usually a paper declaring that the securities owner is a creditor to the issuing enterprise. Securities are offered to collect a certain amount not available to the enterprise to support projects and acquire other enterprises and others.
•    Loans:
Financial assets that are established when a creditor directly lends money to a debtor. They can be referred to using non-negotiable documents.
•    Trade Credit and Advances:
This includes credit provided directly by suppliers of goods and services to their customers, and advances to work being carried out (or to be entrusted), as well as advance payment by customers for goods and services not yet provided.
•    Shareholder Equity:
It consists of the enterprise's book value of paid capital (including stock installments) but excluding non-participating preferential shares that should be guaranteed with liabilities. It also includes cumulative withholding profits and all reserves, including revaluation. Shareholders' equity is also called the net value of the enterprise by subtracting total liabilities from total assets.
•    Net Profit:
Total income during the fiscal year minus all expenses after paying all taxes. It can be usually showed in the income list.
•    Dividends:
Dividends are the part of a company's profits that is paid out to the shareholders. They can be either cash payments or shares. In most cases, the dividends are paid seasonally, quarterly, or annually.
•    FDI Inflows:  
They involve financial transactions between a foreign direct investment entity, direct investors, and related companies outside the Saudi economy. These transactions take place over a specific timeframe. Inflows are characterized by their positive effect, manifesting as an increase in equity rights and/or debt instruments.
•    FDI Outflow 
They involve financial transactions between a foreign direct investment entity, direct investors, and related companies outside the Saudi economy. These transactions take place over a specific timeframe. Outflows are characterized by their impact in reducing liability aspects, such as through the payment of dividends, payment of loans, settlement of creditor dues, or when a direct foreign investor exits.

Data sources

The main source of data for FDI statistics is the Quarterly Foreign Direct Investment Survey.  
The main variables published for the data of the survey/publication [name of the statistical product] are:
•    Total foreign flows (in flow and out flow).
•    Net FDI flows.

Designing the data collection tool

The questionnaire was developed in accordance with international standards, in coordination with the Survey Design & Testing Department. 
 The Quarterly FDI Survey questionnaire consists of 8 sections, as follows:
1-    Contact details:
2-    Company Data
3-    Financial statement characteristics 
4-    Shareholder Structure  
5-    Equity
6-     Receivables from Non-Resident Foreign Shareholders / Related Parties
7-    Receivables to non-resident foreign shareholders and/or related non-resident foreign parties
8-    Attachments

Additionally, errors, correction, and navigation rules were incorporated into the questionnaire, totaling over 50 rules, to ensure data quality and facilitate completion.
The Foreign Investment Survey aims to measure quarterly FDI indicators in the Kingdom of Saudi Arabia, including inbound flows, outbound flows, and net flows. 
Quarterly FDI is measured by tracking the movement of capital between residents and non-residents, provided that at least 10% of voting rights are held.
Inbound flows are investments by non-residents within the country (capital, reinvested earnings, debt instruments).
Outbound flows are investments by residents in establishments outside the country, including the same components (capital, reinvested earnings, debt instruments) as inbound flows..
Net flows are the difference between inbound and outbound flows, indicating whether the country is an investment destination or an investment source.
Survey questionnaire – Arabic–English version

Questionnaire test (cognitive test)

 The outputs of the 2022 cognitive test were utilized for the survey, and there was no need to repeat the test for this year.

Statistical population

The statistical community for the Foreign Direct Investment Survey consists of all foreign investment establishments licensed by the Ministry of Commerce in the Kingdom of Saudi Arabia, where foreign investors hold a voting power of 10% or more of the capital or for a group of investors who have a relationship with them.

Sample Design

The sample was designed with a two-stage stratified cluster systematic random sampling method, in which in the first stage a random sample was selected from the primary sampling units (counting areas) for each stratum of the adopted sampling design.
Stratification:
To increase the efficiency of the sample and improve its representation of the target population, establishments in the sampling frame were classified into homogeneous strata. To obtain more accurate results compared to the simple random sampling method of the same size, and to ensure a sufficient number of establishments at publishable levels, a two-level stratification approach was applied as follows:  
•    Stratification at the 2-digit level of economic activity (ISIC4).
•    Stratification by establishment size categories, which are:
-    Micro enterprises: Establishments with 1 to 5 employees.
-    Small enterprises: Establishments with 6 to 49 employees.
-    Medium enterprises: Establishments with 50 to 249 employees.
-    Large enterprises: Establishments with more than 249 employees.
Size of sample:
The sample size was calculated at the stratum level, defined as the domain of study (economic activity at the 2-digit level of ISIC4). 
The resulting sample size for each study domain (ISIC-2) was then allocated across establishment size classes using the Probability Proportional to Size (PPS) allocation method. This approach reduces the variance of sampling weights, thereby lowering the variance of estimates and enhancing the efficiency of the design. In addition, the sample size at the study domain level (ISIC-2) was adjusted to ensure a minimum acceptable number of establishments, thus securing a sufficient response size for producing accurate estimates at the publication level (ISIC-2). Furthermore, all large establishments and those of high importance were included in the sample with a 100% selection probability, given their significance
The calculations outlined above resulted in a total sample size of (7,254) establishments, distributed as shown in the tables below:
Table1: Distribution of the quarterly survey sample at the section level (ISIC4, ISIC-1). 

Statistical unit (sampling unit)

The statistical unit in Foreign Direct Investment Survey is the establishment.

Data collection

Data for the Foreign Direct Investment (FDI) Survey are collected through telephone interviews (CATI) conducted by interviewers, electronic self-completion by the companies themselves (CAWI), in addition to field data collection (CAPI). Conducted quarterly by GASTAT, the FDI Survey falls under the category of Investment Statistics. Data collection is carried out through telephone communication, email, and fieldwork. The data is stored in GASTAT's databases after undergoing auditing and review processes following approved statistical methods and recognized quality standards. In cases where errors are detected or observations arise, the data source is revisited for verification. 

Data collection frequency 

Quarterly.

Reference area

The Foreign Direct Investment (FDI) Survey covers all 13 administrative regions of the Kingdom of Saudi Arabia 

Reference period (time reference)

The data of the Foreign Direct Investment (FDI) Survey are referenced to the quarter immediately preceding the survey implementation. The survey questionnaire is administered four times annually within 45 days from the end date of the reference quarter. The electronic survey is made available for data completion annually, as follows:
•    During the month of April (for data completion regarding the first quarter of the fiscal year).
•    During the month of July (for data completion regarding the second quarter of the fiscal year).
•    During the month of October (for data completion regarding the third quarter of the fiscal year).
•    During the month of January (for data completion regarding the last quarter of the fiscal year).

Base period

Not applicable.

Measurement unit

Most of the results are numerical values and the input category is in thousands of riyals (e.g., Net FDI flows in thousands).

Time coverage

Data are available from the first quarter of 2023 and on a quarterly basis up to 2025.

Publication frequency

Quarterly.

Statistical processing

Error detection

Errors are identified using internal calculation rules employed by the department to assess data quality and entries.

Data integration and matching from multiple sources 

Review and verification are conducted using the financial statements available from the establishments. 

Imputation and calibration

Historical data are utilized.

Seasonal adjustments

Not applicable.

Adjustment of preliminary results 

Preliminary results are updated on a quarterly basis.

Used Resources

Quality dimensions

Suitability

A criterion that indicates how well the product meets users’ needs.

User needs 

Some external users and beneficiaries greatly benefit from the Foreign Direct Investment statistics, including:
•    Government entities.
•    Regional and international organizations.
•    Research institutions.
•    Media.
•    Individuals.
The disseminated key variables that mostly used by external users:

•    Government entities.
•    Regional and international organizations.
•    Research institutions.
•    Media.
•    Individuals.

The disseminated key variables that mostly used by external users:

Completeness 

Foreign Direct Investment Survey is based on several primary sources, which are: (CATI, CAWI, and CAPI), foreign licenses from the Ministry of Investment, and Gulf companies from the Ministry of Commerce) in order to provide comprehensive information on Foreign Direct Investment (FDI) statistics and complete data.

Accuracy and reliability

A standard that measures how close the calculations or estimates are to the exact or true values that reflect reality.

Overall accuracy 

•    The data collected is improved through the researchers, that have been selected according to a set of practical and objective criteria and training program related to the field of work.
•    Alert, prevention, and correction rules are applied during the data collection process on the electronic questionnaire for the Foreign Direct Investment Survey to improve data quality. 
•    Data is checked with previous years to identify any significant changes in the data.
•    The internal consistency of the data is checked before it is finalized.
•    The links between variables are checked and coherence between different data series is confirmed.

Timeliness and punctuality

A standard that measures the time gap between the availability of information and the occurrence of the event. 
However, timeliness reflects the time difference between the date of data publication and the target date when it is actually published.

Timeliness 

GASTAT uses the Special Data Dissemination Standard (SDDS) issued by the International Monetary Fund. According to this standard, all statistical entities are required to publish data on a quarterly basis, with a time lag not exceeding 90 days after the end of the reference period. If the data comes from different source data, it may be published at a different pace.

Punctuality 

The publication is done according to the publication dates in the statistical calendar published for the Foreign Direct Investment Survey on the website page of the General Authority for Statistics.
The data are available at the expected time, as scheduled in the statistical release calendar, If the publication is delayed, reasons shall be provided.

Coherence and comparability

The ability for users to access data, the availability of accurate or complete data, and the availability of a methodology and quality report.

Comparability - geographical

The data is internationally comparable.

Comparability - over time 

Quarterly Foreign Direct Investment statistics were first published in 2023. This survey is conducted quarterly and is comparable with previous quarters.

Coherence- Cross domain

The review and alignment process is conducted with the administrative data and records of the Ministry of Investment.

Coherence- Sub-annual and annual statistics 

The quarterly total results of foreign direct investments are reviewed to align with the overall annual statistics for foreign direct investment.

Coherence- National Accounts 

Not applicable.

Coherence- Internal 

The Foreign Direct Investment Survey estimates have full internal coherence, as they are all based on the same corpus of microdata, and they are calculated using the same estimation methods.

Accessibility and clarity

The ability for users to access data, the availability of accurate or complete data, and the availability of a methodology and quality report.

Press releases

The announcements for each publication are available on the statistical calendar as mentioned in 10.1. The press releases can be viewed on the website of GASTAT on the link: https://stats.gov.sa/news 

Publications

GASTAT issues Foreign Direct Investment Survey on a regular basis within a pre-prepared dissemination plan and is published on GASTAT’s website.  GASTAT is keen to publish its publications in a way that serves all users of different types, including publications in different formats that contain (publication tables, data graphs, indicators, metadata, methodology, and questionnaires) in both English and Arabic.
The results of the Foreign Direct Investment Survey are available at:
https://www.stats.gov.sa/statistics 

On-line database

Not available.

Microdata accessibility

Accurate data is unit-level disaggregated data obtained from multiple sources such as sample statistical surveys, general population and housing censuses, and administrative systems, providing detailed information about the characteristics of individuals, families, business entities, and geographical areas, supporting the construction and development of statistical indicators and scientific research.
The different types of microdata files to meet different information needs:
•    Public use: 
It consists of sets of records containing information on individuals, households, or business entities anonymized in such a way that the respondent cannot be identified either directly such as: (name, address, contact number, identity number etc.) or indirectly (by combining different - especially rare - characteristics of respondents) such as: (age, occupation, education etc.).
•    Scientific use:
These files established based on specific methodology asked by data requester to extract the datasets with specific characteristics used for strategic studies and decision making as well scientific research purposes on individuals, households and enterprises with no direct identifiers, which have been subject to control methods to protect confidentiality.
Qualified users who meet the standards and procedures of confidentiality protection can access the files of scientific use of accurate data through the platform "ITAHA" of the General Authority for Statistics, while the most sensitive data for use is shared by visiting the accurate data laboratory within a secure environment managed by the Authority.

References and standards

The data are classified according to several classifications:
The National Classification for Economic Activities (ISIC41 )
https://www.stats.gov.sa/classifications 
National Code of Countries and Nationalities (3166 ISO – codes Country):
https://www.stats.gov.sa/classifications 
The respondent's questionnaire also incorporates a guidance manual outlining key concepts, definitions, and the questionnaire completion procedures, providing a reference for respondents during the data collection process.
The survey relies on the International Monetary Fund (IMF) standards and methodology for classifying data according to the Balance of Payments Manual, Sixth Edition (BPM6), in addition to the Coordinated Direct Investment Survey (CDIS) guid.
https://www.imf.org/external/pubs/ft/bop/2007/pdf/bpm6.pdf

Quality assurance

GASTAT considers the following principles: Impartiality, ensuring that the statistical product is user-oriented, maintaining the quality of processes and outputs, enhancing the effectiveness of statistical operations, and reducing the burden on respondents. 
Data is validated through procedures and quality controls that are applied during the process at various stages, such as: (data entry, data collection, and other final controls).

Quality assessment

GASTAT performs all statistical activities according to a national model (Generic Statistical Business Process Model – GSBPM). According to the GSBPM, the final stage of statistical activities is overall evaluation using information gathered in each stage or sub-process. This information is used to prepare the evaluation report, which outlines all the quality issues related to the specific statistical activity and serves as input for improvement actions.

Confidentiality

Confidentiality - Policy

According to Royal Decree No. 23 dated 07/12/1397, data must always be kept confidential and must be used by GASTAT for statistical purposes only.
Therefore, the data is protected in the data servers of GASTAT.

Confidentiality - Data Treatment

Data of SMEs survey are presented in right tables in order to summarize, understand, as well as extract their results. Moreover, to compare them with other data, and to obtain statistical significance about the selected study population. However, referring to such data indicated in tables is much easier than going back to check the original questionnaire that may include some data like names and addresses of individuals, and names of data providers, which violates data confidentiality of statistical data.
“Anonymity of data” is one of the most important procedures. To keep data confidential,
GASTAT removed information on individual persons, households, or business entities in such a way that the respondent cannot be identified either directly such as: (Names, addresses, contact numbers, or identification numbers... etc.) or indirectly (by combining different - especially rare - characteristics of respondents: (age, occupation, education etc.).

Dissemination policy

Statistical calendar

The Foreign Direct Investment (FDI) Survey has been included in the statistical calendar.
Statistical Calendar

User access

One of GASTAT’s objectives is to meet its clients' needs, so it immediately provides them with the publication's results once the Foreign Direct Investment SuPublication is published.
It also receives questions and inquiries from clients about the publication and its results through various communication channels, such as:
•    GASTAT official website:  www.stats.gov.sa
•    GASTAT official e-mail 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).