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Tue, 23 02 1441 | 22 Oct 2019

The National Classification for the Economic Activities (ISIC4)

Introduction

The National Classification for the Economic Activities is derived from the International Standard Industrial Classification of All Economic Activities, forth version (ISIC4) and issued by the United Nations Economic and Social Council. Its main purpose is to provide a set of sections, groups, branches and categories of activities that can be used to collect and publish statistics according to the activities. The Classification for Economic Activities can be defined as the way in which counting units can be collected according to a serial order and defined by homogeneous groups with a view to creating a general framework for comparison of statistical data at the local, regional and international levels, where the data of the economic activity can be divided according to the guide prepared for this to specific levels in a manner similar to the characteristics of economic activities classified in one rank. This similarity is in the type and use of goods and services produced, related services, intermediate inputs, technology used and funding methods.
The establishment or the unit of the economic activity type is the basis of this classification, where the units involved in the formation of the different economic sectors are classified in the appropriate place in the classification according to the main economic activity that they operate, regardless of ownership or method of work.
The classification aims at providing a set of statistical data according to the economic aspects of production, workers, wages, physical capital assets, profits, losses and budgets, as well as providing a comprehensive framework for economic activities.
 The classification consists of sections, groups and categories at the level of the fourth limit in addition to branches, economic activity and its description.

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Bilateral workshops organized by the Authority with the concerned entities are considered a practical step in the process of applying the classification by the concerned entities, as well as to provide the definition and awareness of the National Classification of the Economic Activities.

The General Authority for Statistics (GASTAT) explained that it has completed the preparations for enabling the government entities related to economic activities to implement the "National Classification for Economic Activities", the classification was taken from the International Standard Industrial Classification of All Economic Activities, the forth version (ISIC4), and was issued by the United Nations Economic and Social Council. And it is considered as an approved Classification for Economic Activities in the Kingdom of Saudi Arabia starting next Monday 14 Rabi Thani, 1 January 2018.
The official spokesman of the General Authority for Statistics (GASTAT), Tayseer Al-Mafraj, confirmed that the Authority has held several workshops for the relevant entities during the past period of time and prepared a unified guide and an electronic room for operations and communication in preparation for the start of the adoption of the National Classification for Economic Activities that can be defined as the way in which counting units can be collected according to a serial order and defined by homogeneous groups with a view to creating a general framework for comparison of statistical data at the local, regional and international levels. He also pointed out that the data of economic activity can be divided according to the guide prepared for this to specific levels in a manner similar to the characteristics of economic activities classified in one rank. 
The official spokesman added that the implementation of the Unified Classification for the Economic Activities aims at creating a general framework for comparing statistical data at the local, regional and international levels, and providing a set of statistical data classified according to the economic activity. In addition, the implementation of the Unified Classification for Economic Activities contributes to the organization and restructuring of all sectors, supports the project of electronic connectivity between different entities, improves the quality of administrative records data of the relevant entities, and provides a comprehensive framework of economic activities to facilitate the handling of descriptive formulas automatically.

In response to the directives of the Council of Ministers approving of the National Classification of Economic Activities of the General Authority for Statistics (GaStat,) and as a reliable classification for all concerned entities, GaStat held an introductory workshop under the auspices of His Excellency, the Minister of Economy and Planning, Eng. Adel Fakieh, on Tuesday Muharram 20th, 1439H (October 10th,2017), in the presence of more than 120 participants representing 40 governmental entities.   
HE the President of GaStat, Dr. Fahad Altekhaifi, valued the adoption of the National Classification of economic Activities (ISIC -4) as an approved classification by which all relevant parties work. He also thanked the Minister for supporting the workshop. At the opening of the workshop, he stressed that since the issuance of the directive in Ramadhan 25th, 1438H, Gastat was keen to communicate with all concerned entities to apply the classification. Therefore, GaStat prepared the Application Guidelines of the National Classification of Economic Activities (ISIC-4), which includes the detailed tools and mechanisms that insure compliance of entities with the classification and provides necessary support.

The Authority launched on Tuesday, 28 Dhu al-Hijjah 1438 H, a series of workshops to explain the mechanisms of applying the National Classification for the Economic Activities ISIC4 through a bilateral meeting between experts in the General Authority for Statistics (GASTAT) and the Ministry of Commerce and Investment (MOI) to discuss the implementation of the royal approval to direct