Methodology and Quality Update

Latest Update on Methodology and Quality

2025/10/28

Statistical Presentation

Data description

Structural Business Statistics provide a set of indicators related to the business sector, 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. 
Structural Business Statistics is a survey conducted to collect data on the basic 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.
•    Relative distribution of employees by economic activity.
•    Compensation of employees by economic activity and establishment size.
•    Salaries and wages by economic activity and establishment size.
•    Benefits and allowances by economic activity and establishment size.
•    Annual growth of employee compensation by economic activity and establishment size.
•    Annual growth of salaries and wages by economic activity and establishment size.
•    Annual growth of benefits and allowances 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.
•    Gross fixed capital formation by economic activity.
•    Purchases of fixed assets by economic activity.
•    Sales of fixed assets by economic activity.
•    Annual growth of gross fixed capital formation by economic activity.
•    Annual growth of purchases of fixed assets by economic activity.
•    Annual growth of sales of fixed assets by economic activity.

Classifications

The following classifications are applied in the structural business 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.
-    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.
The classifications are available on GASTAT website:    www.stats.gov.sa

Statistical concepts and definitions

Concepts and Terminology for Structural Business Statistics:
•    Establishment:
It is an economic unit with a legal entity (having a commercial register) engaged in a specific economic activity owned by an individual, a group of individuals, a company, a semi-governmental sector, or an institution.
•    Main economic activity:
The economic activity of any establishment is defined as all the activities or services the establishment engages in or provides, resulting in returns. Sometimes, the establishment may not generate financial returns from its activities, as is the case with charitable organizations that rely on donations. In the case of having multiple economic activities for a single establishment, the most revenue-generating activity is chosen. The classification of economic activity for establishments is based on the International Standard Industrial Classification (ISIC.4).  
•    Operating revenues:
They are the cash revenues achieved due to the establishment engagement in its main
activity or other secondary activities, such as the sale and marketing of its products, the
provision of services to consumers or the trade in goods generally. They also include other
operation revenues not related to the main economic activity of the establishment, but
related to the secondary activities of the establishment, including the industrial services revenues, the secondary activities revenues and the proceedings generated from the sale
of production waste as well as the lease of buildings, non-agricultural lands, machinery,
and equipment, etc.
•    Operating Expenditures
It means the value of the goods or services actually used by the establishment during the
establishment’s fiscal year as a result of practicing the economic activity it carries out,
whether these supplies were purchased in the same year, or withdrawn from inventory
purchased in previous years.
•    Compensation of Employees:
All amounts of wages, salaries, in-kind benefits and social contributions due to employees
during the accounting period in exchange for the work they perform, whether in cash or in-kind, before deducting any deductions from them, such as the social insurance share, taxes
and the like.
•    Salaries and wages:
All cash payments made periodically by the establishment to its employees for regular
working hours and any fixed allowances given to it before any deductions are made by the
employer in relation to taxes, contributions from employees to social security, retirement
systems, and other obligations to employees.
•    Benefits and allowances:
Cash and in-kind payments provided by the employer to employees other than salaries and
wages. These payments include all types of benefits, such as scholarships, education
payments for the employee or his dependents, as well as what is paid for food, housing,
social insurance, transportation allowance, and overtime allowance 
•    Operating surplus:
Equals the gross output based on the product value minus intermediate consumption (goods and services supplies at purchaser cost), compensation of employees, consumption of fixed capital, and net indirect taxes (indirect taxes minus production subsidies).
•    Fixed capital formation:
It is the flows in fixed assets that illustrate the movement of assets within and outside the establishment. It includes the fixed assets that the establishment acquires for use in achieving its purposes, not for the purpose of selling or using them as raw materials in its production operations (such as residential and non-residential buildings, transportation equipment, furniture, machinery, and equipment).
•    Fixed assets purchased during the year (capital formations):
Fixed assets purchased by the establishment during the year for use in achieving its
purposes and not for the purpose of selling them or introducing them as raw materials in its
production processes, such as buildings, lands, means of transportation, equipment,
machines, and furniture.
•    Fixed assets sold during the year (capital formations):
Fixed assets disposed of by the establishment during the year as a result of no longer being needed for operational processes or in order to achieve the establishment’s objectives. They include for example: Buildings, lands, means of transport, machinery, equipment, and furniture.

Data sources

The Structural Business Statistics data are based on two sources:
First source: of the Structural Business Statistics data is the Structural Business 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
•    Relative distribution of employees by economic activity
•    Compensation of employees by economic activity and establishment size
•    Salaries and wages by economic activity and establishment size
•    Benefits and allowances by economic activity and establishment size
•    Annual growth of employee compensation by economic activity and establishment size
•    Annual growth of salaries and wages by economic activity and establishment size
•    Annual growth of benefits and allowances 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
•    Gross fixed capital formation by economic activity
•    Purchases of fixed assets by economic activity
•    Sales of fixed assets by economic activity
•    Annual growth of gross fixed capital formation by economic activity
•    Annual growth of purchases of fixed assets by economic activity
•    Annual growth of sales of fixed assets by economic activity
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.
•    Relative distribution of employees by economic activity.
•    Compensation of employees by economic activity and establishment size.
•    Salaries and wages by economic activity and establishment size.
•    Benefits and allowances by economic activity and establishment size.
•    Annual growth of employee compensation by economic activity and establishment size.
•    Annual growth of salaries and wages by economic activity and establishment size.
•    Annual growth of benefits and allowances 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.
•    Total gross fixed capital formation by economic activity.
•    Purchases of fixed assets by economic activity.
•    Sales of fixed assets by economic activity.
•    Annual growth of total gross fixed capital formation by economic activity.
•    Annual growth of fixed assets purchases by economic activity.
•    Annual growth of sales of fixed assets by economic activity

Designing the data collection tool

The form is divided into 10 sections:
•    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 revenue – Operating Expenditure – Compensation of employees
•    Fixed capital formation: Purchases of fixed assets – Sales of fixed assets
Navigation rules:
The form was designed in a modern electronic format, incorporating a set of business rules to verify the logical consistency of the entered data, thereby ensuring its accuracy and integrity and enhancing the reliability of the resulting outputs, and it includes 43 validation rules.
Structural Business Statistics Survey form:
Survey questionnaire

Questionnaire test (cognitive test)

The outputs of the cognitive test conducted in 2022 were used as a reference for the Structural Business Statistics Survey.

Statistical population

The statistical population of the Structural Business Statistics survey consists of all establishments engaged in economic activities in the Kingdom of Saudi Arabia within the business frame. This frame serves as the list containing all units of the target population for this survey and for other economic surveys conducted by the General Authority for Statistics. It includes the classification of all establishments by economic activity at multiple levels, as well as establishment size, administrative regions, and other basic data used in constructing various economic samples. The sampling frame is considered the 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.
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.
Size of sample:
The sample size was calculated at the detailed classification level (the fourth level) of the International Standard Industrial Classification of All Economic Activities (ISIC4), in order to ensure the possibility of producing accurate results at this level (the publication level). Given the importance of large and medium-sized establishments, they were fully included in the sample with a 100% certainty of selection.
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 mean and variance at the fourth-level of the International Standard Industrial Classification of All Economic Activities (ISIC4) for estimating the average operating revenues (based on data from the previous survey cycle – 2023).
•    The design effect at the fourth-level of the International Standard Industrial Classification of All Economic Activities (ISIC4) for estimating the average operating revenues (based on data from the previous survey cycle – 2023).

•    The response rate at the fourth-level of the International Standard Industrial Classification of All Economic Activities (ISIC4) for estimating the average operating revenues (based on data from the previous survey cycle – 2023), with the specification of an acceptable minimum threshold.
•   The allowable relative margin of error.
    A confidence level was used (1-α)=0.95.
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 result of the sample size calculation using the previously mentioned equation was allocated for each study domain across establishment size categories and administrative regions. Then, the size of the establishments with a 100% selection probability in the same stratum was excluded due to their importance. The remaining estimated sample size for each stratum was subsequently distributed across the remaining size categories using (Power Allocation).
Next step is the final allocation of the sample at the administrative region level using the Probability Proportional to Size (PPS) method. This allocation method reduces the variance of the weighting factors, thereby reducing the variance of the estimates and increasing the design efficiency, while ensuring a minimum acceptable 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 the Structural Business Statistics is the establishment.

Data collection

Data collection from the survey:
Structural Business Statistics data 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 GASTAT responsible for survey implementation and data collection management, the administrative data for the Structural Business Statistics Publication are obtained and stored in the GASTAT databases. This occurs after verification and review processes using approved statistical methods and recognized quality standards, with reference back to the data source in case errors are detected or observations on the data arise.

Data collection frequency 

 The collection of Structural Business Statistics data is conducted on an annual basis. 

Reference area

The Structural Business Statistics covers all 13 administrative regions of the Kingdom of Saudi Arabia (Riyadh, Makkah, Al-Madinah, Qassim, Eastern, 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 targeted sample during the designated survey period, and the forms are completed accordingly. The data are usually attributed to the financial year preceding the implementation period.

Base period

 Not applicable. 

Measurement unit

•    Most results are measured in thousands of riyals (such as: Operating revenues and Expenditure, compensation of employees, operating surplus, gross fixed capital formation, purchases of fixed assets, and sales of fixed assets).
•    Some results are calculated as percentages (such as: Relative distribution of employees).

Time coverage

 Structural Business Statistics results are available and comparable from 2019 to 2024.

Publication frequency

 Structural Business Statistics results are published on an annual basis according to the approved statistical plan..

Statistical processing

Error detection

Data is reviewed and matched to ensure their accuracy and precision in a way that suits their nature to give the presented statistics quality and accuracy. An example of this is the use of the IQR methodology (Interquartile Range), which is a widely applied and globally 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 50% of the data to highlight the values that significantly differ 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 ensure its accuracy, all outputs are stored and uploaded to the database after being calculated by GASTAT. They are then reviewed and 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 extracted from administrative sources is used in integration with survey data to obtain the final indicators. Administrative data are used as a source to feed these indicators, 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 the Structural Business Statistics, whether for establishments with incomplete response or missing data for specific variables. Reinterviews are allowed to obtain missing respondent data 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 sample weights are calculated based on the strata used in its design and distribution, where the selection probability of establishment i from stratum h is, and thus the weight of the establishment selected in the sample is as follows: 

Non-response weight adjustment:
Weight adjustment to compensate for non-response or missing data to ensure proper representation of the sample. This adjustment is made after data collection and processing, once response statuses are known, according to the following equation:

Represents the adjusted weight for non-response in stratum (or adjustment category) 
ℎ, where the adjustment or correction factor for each stratum (or adjustment category) 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 how well the product meets users’ needs.

User needs 

Internal users in the GASTAT for Structural Business Statistics data:
•    National accounts.
Several external users and beneficiaries who greatly rely on the Structural Business Statistics data, including:
•    Government entities.
•    Regional and international organizations.
•    Research institutions.
•    Media.
•    Individuals.
Key variables that are mostly used 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 the data are complete.

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 Structural Business 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 

The publication is done according to the publication dates in the statistical calendar published for the Structural Business Statistics on the GASTAT website page.
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 follow standardized international definitions and standards, ensuring their comparability both nationally and internationally.

Comparability - over time 

The survey started in 2005 as an annual survey. The major changes that have occurred in recent years:
•    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. Annual editions of the Structural Business Statistics were provided accordingly up to 2022.
•    2023:
Implementation of the comprehensive economic survey.
•    2024:
Conducting Structural Business Statistics as 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 help ensure integration and harmonization among statistics, enhancing the reliability of the data and the quality of the analyses based on them, while ensuring that the results are free from any unjustified inconsistencies.

Coherence- Sub-annual and annual statistics 

Not applicable.

Coherence- National Accounts 

Structural Business Statistics data serve as a key input for national accounts outputs, and their consistency has been verified by cross-checking the results and information derived from related data sources and statistics.

Coherence- Internal 

Estimates of Structural Business Statistics have full internal consistency, as they are all based on the same accurate dataset and 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: 
Press release

Publications

GASTAT regularly issues the Structural Business Statistics publications and reports according to 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 Structural Business Statistics are available at:
Structural business 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.
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 were established based on a specific methodology according to the data requester's requirements to extract the datasets with specific characteristics used for strategic studies, decision-making, and scientific research by individuals, households, and enterprises, while ensuring they contain no 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 the Structural Business Statistics are based on the following international standards:
•    European Statistical System quality and metadata handbook, European Union Statistical Office:
European Statistical System Handbook
•    System of National Accounts 2008:
National Accounts System ​​​​​​​
•    United Nations Statistics Division UNSD:
United Nations Statistics Division

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 07/12/1379, 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

Structural Business 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.
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 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).