Methodology and Quality Update

Latest Update on Methodology and Quality

2025/12/28 

Statistical Presentation

Data description

Small and Medium Establishments Statistics provide a set of indicators related to the business sector. The Small and Medium Establishments Statistics publication presents statistical indicators on the economic activities of micro, small, and medium establishments, such as: Operating revenues and expenditures, employee compensations, capital formations, as well as other economic indicators that are classified by economic activity. These indicators serve as a fundamental tool for measuring the structure of the business sector and its growth rates, and they also represent a primary source of business statistics in the Kingdom, meeting the needs of local authorities as well as regional and international organizations. 
The Small and Medium Establishments Statistics survey is conducted to collect data on the main characteristics as follows:
•    Economic activities practiced in establishments.
•    Operating revenues and expenditures of the establishments.
•    Non-operating revenues and expenditures of establishments
•    The number of employees and their compensation within the establishments.
These data are used to provide indicators of:
•    Operating revenues by economic activity and establishment size.
•    Annual growth of operating revenues by economic activity and establishment size.
•    Operating expenditures by economic activity and establishment size.
•    Annual growth of operating expenditures by economic activity and establishment size.
•    Compensation of employees by economic activity and establishment size.
•    Annual growth of employee compensation by economic activity and establishment size.
•    Operating surplus by economic activity and establishment size.
•    Annual growth of operating surplus by economic activity and establishment size.
•    Percentage contribution of small and medium establishments to the gross domestic product (GDP).
•    Percentage of employees in small and medium establishments out of the total employees in the business sector.

Classifications

The following classifications are applied in the Small and Medium Establishments Statistics:
The National Classification for Economic Activities (ISIC4):
The statistical classification based on the International Standard of Industrial Classification of All Economic Activities (ISIC4) is used to describe the productive activities of an establishment. 
Saudi classification of products and services – based on the Central Product Classification (CPC 2.1): 
The Saudi classification of products and services – based on the Central Product Classification (CPC 2.1) issued by the United Nations Statistical Commission in 2018 – is a recognized standard for the collection and classification of products, including goods and services . This classification is used in areas such as industrial production, national accounts, international trade, and the balance of payments to support statistical standardization and facilitate comparisons.
Classifications are available on the GASTAT website:  www.stats.gov.sa

Statistical concepts and definitions

Terms and concepts related to Small and Medium Establishments Statistics:
•    Establishment:
An establishment is an economic unit with a legal entity (with a commercial registration) that engages in a specific economic activity and is owned by an individual, a group of individuals, a company, a semi-government sector, or an institution.
•    Main economic activity:
The main economic activity of an establishment is defined as all activities or services carried out or provided by the establishment that generate returns. In some cases, an establishment may not generate financial returns from its activities, such as charitable organizations that rely on donations. If an establishment carries out more than one economic activity, the activity that generates the highest revenue is selected as the main economic activity. The classification of economic activity for establishments is based on the International Standard Industrial Classification (ISIC4).  
•    Operating revenues:
Revenues are all cash proceeds generated as a result of an establishment’s engagement in its main economic activity or other secondary activities, such as the sale and marketing of its products, the provision of services to consumers, or trading in goods in general. They also include daily cash receipts from operations. These revenues comprise the total value of sales of manufactured products, in addition to other revenues that are not related to the establishment’s main economic activity but are associated with its secondary activities. Such revenues include income from services provided to others, proceeds from the sale of production waste, rental income from buildings and non-agricultural land, as well as income from leasing machinery and equipment, among others.
•    Operating expenditures:
They refer to the value of goods and services actually consumed by the establishment during the financial year as a result of carrying out its economic activity, whether these inputs were purchased during the same year or withdrawn from inventories acquired in previous years.
•    Compensation of Employees:
All amounts of wages, salaries, in-kind benefits, and social contributions payable to employees during the accounting period in return for the work they perform, whether paid in cash or in kind, before the deduction of any withholdings, such as social insurance contributions and similar items.
•    Operating surplus:
It equals gross output valued at basic prices minus intermediate consumption (goods and services inputs valued at purchasers’ prices), plus compensation of employees and consumption of fixed capital, and net indirect taxes (indirect taxes less production subsidies).

Data sources

Small and Medium Establishments Statistics data are based on two sources:
First source: Small and Medium Establishments Statistics Survey.
 The main indicators published according to this source are:
•    Operating revenues by economic activity and establishment size.
•    Annual growth of operating revenues by economic activity and establishment size.
•    Operating expenditures by economic activity and establishment size.
•    Annual growth of operating expenditures by economic activity and establishment size.
•    Compensation of employees by economic activity and establishment size.
•    Annual growth of employee compensation by economic activity and establishment size.
•    Operating surplus by economic activity and establishment size.
•    Annual growth of operating surplus by economic activity and establishment size.
•    Percentage contribution of small and medium establishments to the gross domestic product (GDP)
•    Percentage of employees in small and medium establishments out of the total employees in the business sector.
Second source: Administrative records:
•    Ministry of Energy
•    Ministry of Environment, Water and Agriculture.
•    Saudi Central Bank.
•    Insurance Authority (IA).
The main indicators published according to this source are:
•    Operating revenues by economic activity and establishment size.
•    Annual growth of operating revenues by economic activity and establishment size.
•    Operating expenditures by economic activity and establishment size.
•    Annual growth of operating expenditures by economic activity and establishment size.
•    Compensation of employees by economic activity and establishment size.
•    Annual growth of employee compensation by economic activity and establishment size.
•    Operating surplus by economic activity and establishment size.
•    Annual growth of operating surplus by economic activity and establishment size.
•    Percentage contribution of small and medium establishments to the gross domestic product (GDP).
•    Percentage of employees in small and medium establishments out of the total employees in the business sector.

Designing the data collection tool

An electronic form (CAPI) was designed to ensure ease of use by field researchers, and a computer-assisted telephone interviewing (CATI) form was designed to communicate with the targeted respondents by phone. Data were collected through a self-administered questionnaire that was prepared and designed by specialists at the General Authority for Statistics. International recommendations, standards, and definitions were taken into account in its design. The questions were formulated in a specific scientific manner to standardize the way questions are administered by researchers.
The questionnaire includes 10 sections, including:
•    First: Average number of employees.
•    Second: employees' compensations
•    Third: Operating expenditures (consumed goods and services inputs).
•    Fourth: Operating revenue and services provided.
•    Fifth: E-commerce Sales.
•    Sixth: Non-operating expenditures.
•    Seventh: Non-operating revenues.
•    Eighth: Non-financial assets.
•    Ninth: Financial assets and liabilities. 
•    Tenth: Imports and exports.
Method of calculating the indicators:
•    Operating surplus: Operating revenues – operating expenditures – compensation of employees.
•    Fixed capital formation: Purchases of fixed assets – sales of fixed assets.
Review and Correction Rules:
Audit and control rules have been established in the form to ensure that the data collected is consistent, accurate, and logical. These rules were designed by establishing logical relationships between responses, questions, and different variables to help the field researcher detect any errors directly during data entry.
To ensure the quality of Small and Medium Establishments Statistics Survey data, four types of review and validation rules were established, as follows:
•    Automated adjustment rules:
These rules were established for the automatic calculation of certain fields or the automatic adjustment of responses in specific fields, in line with some questionnaires, totaling (107) rules.
•    Navigation rules between sections and fields:
Special rules were programmed to regulate automatic navigation between sections and fields based on the respondent’s answers, totaling 43 rules.
•    Error rules:
These are rules that cannot be bypassed during the data entry process. The field researcher must correct the data by referring back to the respondent to verify its accuracy. The total number of these rules exceeds 80.
•    Alert rules (warnings):
These rules are designed to verify the correctness of the data entered by the researcher. The field researcher may override them if the data accuracy is confirmed, with a total of approximately 37 rules.

Questionnaire test (cognitive test)

The outputs of the cognitive testing conducted in 2022 were utilized for the Small and Medium Establishments Statistics Survey. The interview sample consisted of a random sample of establishments, and cognitive testing was conducted on a number of questionnaire questions based on the pillars of cognitive testing. Some observations were identified in relation to the following pillars: the overall concept of the question, clarity of question wording, clarity of the terms used in the question, and the appropriateness of the response options, until a report was produced providing a comprehensive summary of the cognitive testing results.

Statistical population

The statistical population of the Small and Medium Establishments Statistics Survey consists of all establishments engaged in economic activities in the Kingdom of Saudi Arabia within the business frame, which represents the list containing all units of the target population for this survey and for other economic surveys conducted by the General Authority for Statistics. The business frame includes the classification of all establishments by economic activity at more than one level, as well as establishment size, administrative regions, and other basic data used in building various economic samples. The sampling frame is considered a list of all establishments that meet the survey conditions.

Sample Design

The sample was designed using the stratified systematic random sampling method, in which a systematic random sample of establishments was selected for each stratum of the adopted sampling design. The sample of the Small and Medium Establishments Statistics is considered part of the Structural Business Survey sample.
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. In order to obtain more accurate results compared to the simple random sampling method of the same size, and to ensure an adequate number of establishments at publishable levels, a three-level stratification approach was applied as follows:
•    Stratification at the fourth-level classification 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.
•    Stratification at the level of administrative regions.
Sample size:

The sample size was calculated at the detailed classification level (four-digit level) of the International Standard Industrial Classification of All Economic Activities (ISIC4, to ensure the production of accurate results at this level (the dissemination level). Given the importance of large and medium establishments, they were fully included in the sample with a selection probability of 100%.
Parameters used in estimating the sample size:
•    The total number of establishments based on the frame at the fourth-level of the International Standard Industrial Classification of All Economic Activities (ISIC4).
•    The arithmetic mean and variance at the four-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC4) were used to estimate the average operating revenues, based on data from the previous survey cycle (2023).
•    The design effect at the four-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC4) was used to estimate the average operating revenues, based on data from the previous survey cycle (2023).
•    The response rate at the four-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC4) was used to estimate the average operating revenues, based on data from the previous survey cycle (2023), with an acceptable minimum threshold specified.
•    The allowable relative margin of error.
•    A confidence level was used 

The sample size for each study domain at the fourth level of ISIC4 was determined using the following equation:

Whereas:
•  n_h : Sample size for each stratum h (study domain).
•  Deff_h : Estimated design effect for each stratum h (study domain).
•  resp_h : Estimated response rate for each stratum h (study domain).
•  S_h :  Standard deviation for each stratum h (study domain).
•  α : Confidence level factor in estimating the indicator for each stratum h (study domain).
•  re_h   : Allowed relative error in estimating the indicator for each stratum h (study domain).
•     : Average of the indicator for each stratum h (study domain).
•   Nh : Total establishments for each stratum h (study domain) in the frame.
The output of the sample size calculation, using the previously referenced formula, was distributed across establishment size categories and administrative regions for each study domain. Subsequently, certainty establishments within the same stratum were excluded, as they were included with a 100% selection probability due to their importance. The remaining estimated sample size for each stratum was then allocated across the remaining size categories using power allocation.

This was followed by the final step of allocating the sample at the administrative region level using the Probability Proportional to Size (PPS) allocation method. This allocation method reduces the variance of sampling weights, thereby decreasing the variance of estimates and enhancing design efficiency, while specifying an acceptable minimum sample size for each final stratum. 
The calculations outlined above resulted in a total sample size of 90,752 establishments, distributed as shown in the tables below:
Table1: Distribution of the survey sample at the 1-digit level (section) of the International Standard Industrial Classification of All Economic Activities (ISIC4):

Statistical unit (sampling unit)

The statistical unit in Small and Medium Establishments Statistics is the establishment.

Data collection

Data collection from the survey:
Data for Small and Medium Establishments Statistics are collected through:
•    Computer-assisted Personal Interview (CAPI)
•    Computer-assisted Telephone Interviews (CATI).
•    Computer-assisted Web Interviews (CAWI). 
Data collection from administrative records:
In coordination with the relevant departments of the General Authority for Statistics responsible for survey implementation and data collection management, the administrative data related to the Small and Medium Establishments Statistics publication is obtained from the relevant entities and stored in GASTAT’s databases. This is done after applying verification and review processes in accordance with approved statistical methods and recognized quality standards, with reference to the data source in case errors are identified or observations are noted on the data.

Data collection frequency 

The data collection process for Small and Medium Establishments Statistics is carried out on an annual basis. 

Reference area

Small and Medium Establishments Statistics cover the 13 administrative regions of the Kingdom of Saudi Arabia (Riyadh, Makkah Al-Mukarramah, Al-Madinah Al-Munawwarah, Qassim, Eastern Region, Asir, Tabuk, Hail, Northern Borders, Jazan, Najran, Al-Baha, and Al-Jouf).

Reference period (time reference)

References period to the variables or dataset as following:
Data are collected from the establishments included in the target sample during the period specified for implementing the survey, which corresponds to the year 2025, and the questionnaires are completed accordingly. The data are usually attributed to the fiscal year preceding the implementation period, which corresponds to the year 2024.

Base period

Not applicable. 

Measurement unit

•    Most results are measured in thousands of Saudi riyals (such as operating revenues and operating expenditures, compensation of employees, operating surplus, and gross fixed capital formation).
•    Some results are calculated as percentages (such as the contribution of small and medium establishments to the gross domestic product (GDP).

Time coverage

Results of Small and Medium Establishments Statistics are available from 2019 to 2024.

Publication frequency

The results of Small and Medium Establishments Statistics are published on an annual basis in accordance with the approved statistical plan.

Statistical processing

Error detection

The data are reviewed and validated to ensure their accuracy in a manner appropriate to their nature, to enhance the quality and accuracy of the statistics produced. An example of this is the use of the IQR methodology (interquartile range), which is an internationally applied and widely practiced method for identifying outliers.
The calculation is done:
•    First quarter (Q1 / 25%): The average of the lower half of the dataset.
•    Third quarter (Q3 / 75%): The average of the upper half of the dataset.
The interquartile range measures the spread of the middle 50% of the data, highlighting values that differ significantly from the central tendency of the dataset.
The boundaries for outliers are determined as follows:
•    Lower Bound: First quartile - 1.5 * Interquartile range (IQR).
•    Upper Bound: Third quartile + 1.5 * Interquartile range (IQR).
Variables are identified as outliers if:
•    The variable is less than the minimum.
•    The variable is greater than the maximum.
After identifying outliers, the Business and Trade Statistics team analyzes and evaluates the outliers in the averages by comparing the mean and median across specific data set characteristics, using appropriate statistical measures and critical assessment of the outliers.
In addition to processing and tabulating the data to verify their accuracy, all outputs are stored and uploaded to the database after being calculated by the General Authority for Statistics. They are then reviewed and further processed by specialists in the Business and Trade Statistics Department using modern technologies and software designed for this purpose.

Data integration and matching from multiple sources 

Data from multiple sources were integrated and matched by combining data extracted from administrative sources with survey data to produce the final indicators. Data obtained from relevant entities are used as a source to populate these indicators, thereby ensuring the accuracy and comprehensiveness of the results.

Imputation and calibration

Imputation (for non-response cases or incomplete datasets): 
The approach used for imputation in Small and Medium Establishments Statistics, whether for establishments with complete non-response or for missing data for specific variables. Re-interviews are allowed to obtain missing data from respondents or to address cases of non-response. Subsequently, missing data or non-response are addressed by evaluating them to follow a scientific methodology for estimating results, taking into account several considerations, including historical data series, an acceptable range of missing data, and estimates based on stratum-level data.
Weighting:
 The basic sampling weights were calculated based on the strata used in the sample design and allocation. The probability of selection for establishment i in stratum h is denoted by π_hi. Accordingly, the sampling weight for the selected establishment is calculated as follows:

Non-response weight adjustment:

The sampling weight is adjusted to compensate for non-response or missing data in order to ensure proper sample representation. This adjustment is applied after data collection and processing, once response statuses are identified, and is calculated according to the following formula: 

   represents the non-response adjusted weight in stratum (or adjustment class) h. The adjustment (or correction) factor for each stratum (or adjustment class)    i  is calculated as follows:

Where R represents the responses and NR represents the non-responses.

Seasonal adjustments

Not applicable, only final results will be published.

Adjustment of preliminary results 

Not applicable, only final results will be published. 

Used Resources

Quality dimensions

Suitability

A criterion that indicates the extent to which the product meets users’ needs.

User needs 

Internal users at the General Authority for Statistics of Small and Medium Establishments Statistics data:
•    National accounts.
There are several external users who significantly benefit from Small and Medium Establishments Statistics data, including:
•    Government entities.
•    Regional and international organizations.
•    Research institutions.
•    Media.
•    Individuals.
Key variables most utilized by external users:

Completeness 

Data were collected from a representative sample of establishments to provide comprehensive indicators covering all targeted categories, sectors, and regions. The data were reviewed to ensure compliance with national requirements and international standards and were confirmed to be complete.

Accuracy and reliability 

A measure that indicates the extent to which estimates or calculations are close to the true or actual 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 health and safety at work statistics 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 

The General Authority for Statistics is committed to applying the approved international standards for publishing statistics, including the timeliness standard issued by the European Statistical System. It announces and clarifies the publication dates of statistics through its official website via the statistical calendar. The authority adheres to the announced schedules, and in case of any delay, updates will be provided accordingly.

Punctuality 

Publication is carried out in accordance with the release dates specified in the published statistical calendar for Small and Medium Establishments Statistics on the website 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

A standard that refers to the necessity of internal and temporal consistency of statistics, their logical coherence, and their comparability and integration across different regions and sources.

Comparability - geographical

The data adhere to unified international definitions and standards, ensuring their comparability at the national and international levels.

Comparability - over time 

The survey was launched in 2019 as an annual survey. The following are the key stages it has undergone since its inception:
•    2019:
GASTAT has transitioned to using administrative records to build and update the statistical business register in accordance with international practices, ensuring that the statistical frames can be updated on an annual basis. Accordingly, annual editions of Small and Medium Establishments Statistics were released up to 2022.
•    2023:
Implementation of the comprehensive economic survey.
•    2024:
The implementation of Small and Medium Establishments Statistics represents a continuation of the previous survey series.

Coherence- Cross domain

The data are consistent, as their coherence is verified against all other statistics containing similar indicators. These procedures contribute to ensuring integration and coherence across statistics, thereby enhancing data reliability and the quality of the analysis based thereon, and ensuring that the results are free from any unjustified inconsistencies.

Coherence- Sub-annual and annual statistics 

Not applicable. Since Small and Medium Establishments Statistics are published on an annual basis only. 

Coherence- National Accounts 

Data from Small and Medium Establishments Statistics constitute a key input to the outputs of the national accounts. Their coherence has been ensured by verifying the consistency of results and information derived from data sources and related statistics.

Coherence- Internal 

The results of Small and Medium Establishments Statistics exhibit full internal coherence, as they are all based on the same set of microdata and are calculated using the same estimation methods. 

Accessibility and clarity

The ability of users to access data, the availability of detailed or aggregated data, and the availability of the 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: 
Press release

Publications

The General Authority for Statistics issues publications and reports on Small and Medium Establishments Statistics regularly within a pre-prepared dissemination plan, and they are published on the Authority’s website.  The Authority is keen to disseminate its results in a manner that serves all types of users, including publications in various formats that contain dissemination tables and charts for data and indicators, the Methodology and Quality Report, and the questionnaires used, in both Arabic and English.
Results of Small and Medium Establishments Statistics are available at:
Small and Medium Establishments Statistics

Online database

The data is published on the statistical database:
Statistical database

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.
Different types of microdata files are available to meet diverse 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 by 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 are created based on specific methodologies, upon the request of the data requester, to extract datasets with defined characteristics for use in strategic studies, decision-making, and scientific research by individuals, households, and companies, while ensuring that they do not contain any direct identifiers and are subject to confidentiality protection controls.
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 concepts, definitions, issues, and classifications in Small and Medium Establishments Statistics are based on the following international standards:
•    European Statistical System Quality and Metadata Handbook, Statistical Office of the European Union (Eurostat):
European Statistical System Handbook
•    System of National Accounts 2008:
National Accounts System ​​​​​​​
•    United Nations Statistics Division UNSD:
United Nations Statistics Division

Quality assurance

GASTAT declares that it 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 phase of statistical activities is overall evaluation using information gathered in each phase 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 07/12/1379, 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 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.).

Dissemination policy

Statistical calendar

Small and Medium Establishments Statistics have been included in the statistical calendar.
Statistical Calendar

User access

One of GASTAT’s objectives is to better meet its clients' needs, so it immediately provides them with the publication's results upon its release.
The Authority also receives users’ questions and inquiries regarding the publication and its results through various communication channels, such as:
•    GASTAT official website: www.stats.gov.sa
•    GASTAT official email 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).