General Authority for Statistics: Key to Analyzing Saudi Economy

The General Authority for Statistics (GASTAT) was established in 2011 by a decision from the Saudi Council of Ministers to update and improve the national statistical system. Prior to the establishment of the authority, scattered efforts were made to collect and publish data, often managed through separate statistical departments in ministries such as economy, labor, and industry. The establishment of the authority was a response to the growing need for an integrated data system that supports the Kingdom's economic transformation and aligns with the requirements of Vision 2030.

Since its inception, the authority's role has evolved from an executive body for data collection to a strategic partner in shaping economic policies. This coincided with the launch of massive infrastructure projects and structural transformations in the Saudi economy, such as housing programs, smart city projects (NEOM, Red Sea), and the implementation of income diversification policies. The authority has kept pace with these transformations by building modern databases, developing survey methodologies, and digitizing data collection processes.

Over the past decade, GASTAT has launched numerous initiatives, such as the electronic transformation of demographic and economic surveys and the establishment of open data platforms. The authority has also strengthened its relationships with international institutions (World Bank, International Monetary Fund) to ensure that Saudi indicators align with global standards. Today, the authority issues periodic reports covering economic, social, demographic, and environmental sectors, providing accurate data that helps measure economic performance, evaluate policies, and attract foreign investments. This development has made the authority a key element in building transparency and enhancing the competitiveness of the Saudi economy regionally and internationally.

The General Authority for Statistics follows precise scientific methodologies in data collection and the preparation of economic and social indicators. The process begins with designing statistical forms in accordance with the standards of international organizations such as the United Nations and the International Monetary Fund, and these forms undergo preliminary field tests to ensure the quality of questions and accuracy of interpretation.

Data is collected through various methods, primarily direct field surveys, telephone surveys, and electronic linkage with government and private entities. Technology plays a significant role, as the authority now uses electronic applications for data collection and analysis, relying on centralized database systems that are updated periodically. The authority also employs stratified random sampling in large surveys to ensure representation of all regions and population or economic segments.

After data collection, it undergoes a series of auditing and cleaning processes, including reviewing illogical responses, auditing outlier values, and comparing results with previous years' data or other government sources. In preparing indicators such as the Construction Cost Index or the Industrial Production Index, the authority relies on calculating relative weights for the components of the index (such as raw materials, wages, services) and uses standardized mathematical equations that enable historical comparisons. Final reports are issued after scientific review by specialized committees within the authority and independent experts, ensuring high credibility and reliability of the published data.

The authority's methodologies are flexible enough to keep pace with rapid economic changes, while also allowing for international comparisons, enhancing the effectiveness of the indicators in supporting decisions made by companies, investors, and policymakers.

The General Authority for Statistics covers a wide range of economic and social indicators, with macroeconomic indicators being among the most important releases relied upon by both the public and private sectors. Among these indicators, the Industrial Production Index stands out, measuring changes in the volume of industrial production in the Kingdom over time. This index is calculated based on production data from major factories in the mining, manufacturing, and electricity sectors, and serves as a primary reference for measuring industrial activity and forecasting demand for industrial products.

The Construction Cost Index is another critical indicator, especially for construction and building material companies. This index measures changes in the prices of construction inputs (such as cement, steel, wages), providing investors with a comprehensive view of cost trends in government and private projects. For example, GASTAT's report for October 2025 showed a 1.0% increase in the Construction Cost Index compared to the same month the previous year, indicating increased activity in the construction sector and rising demand for essential materials.

Additionally, the authority issues indicators such as per capita income, price levels (Consumer Price Index), consumer spending indicators, and statistics on mineral resources, which include data on production and industrial minerals like cement and gypsum. These indicators are used in preparing national economic plans, evaluating the success of transformation programs, and analyzing investment opportunities in the Saudi market, particularly in vital sectors such as industry and construction.

Official statistical data plays a vital role in supporting the efficiency of the Saudi financial market (Tadawul) and the decisions of investors and analysts. The indicators issued by the General Authority for Statistics serve as a fundamental reference in evaluating the performance of listed sectors, as changes in industrial production or construction cost indicators directly impact the profitability of companies and their stock prices.

For instance, building material companies like Hail Cement rely on the Construction Cost Index to understand the expected demand for their products. An increase in the index by 1.0% in October 2025 reflects an increase in spending on construction projects, which may lead to growth in sales for cement and concrete companies. Similarly, the Industrial Production Index provides investors with insights into the expansion of industrial sectors and is used to estimate expected growth for sectors such as cement, petrochemicals, or energy.

Statistical data also affects liquidity assessment and trading volume in the market, as investors tend to increase their positions in sectors that show growth in official indicators. Furthermore, the authority's quarterly reports allow for comparisons of company performance with macroeconomic developments, aiding in measuring the feasibility of long-term investments and identifying companies that stand to benefit most from major state projects or changes in economic policies. Thus, data from the General Authority for Statistics is an indispensable tool for analyzing risks and opportunities in the Saudi stock market.

The Construction Cost Index is one of the primary economic indicators issued periodically by the General Authority for Statistics. This index measures changes in the prices of essential construction inputs, such as cement, steel, concrete, wages, and engineering services. Relative weights are calculated for each component based on its importance in the total cost of real estate or infrastructure projects.

The authority follows a precise methodology in collecting price data from suppliers and contractors across various regions of the Kingdom, then calculates monthly or quarterly averages while monitoring seasonal or sudden changes (such as fluctuations in global energy prices). When the index rises, as occurred with a 1.0% increase in October 2025 compared to the same month in 2024, it indicates growth in demand for construction materials and increased construction activity in the Kingdom.

This index has a direct impact on cement companies like Hail Cement, as rising construction costs are often associated with increased cement sales due to more projects. On the other hand, rising costs may pressure companies' profit margins if they cannot pass the increase onto the end consumer. Additionally, investors use the Construction Cost Index to forecast real estate price trends and assess risks associated with large development projects. Therefore, the Construction Cost Index is a central tool in analyzing the construction sector and predicting the performance of building material companies in the Saudi market.

The cement sector in the Kingdom of Saudi Arabia is one of the largest industrial sectors and is closely linked to national economic growth. This sector is directly affected by infrastructure and housing projects, as the state relies on local cement production to meet the needs of Vision 2030 projects and new cities like NEOM and the Red Sea. The annual cement consumption in the Kingdom is estimated in tens of millions of tons, distributed among about 15 major companies.

The Saudi cement market is characterized by high competitiveness, and its geographical distribution gives each company a competitive advantage in its region. For example, Hail Cement Company focuses on meeting demand in the northern part of the Kingdom, while other companies like Saudi Cement and Qassim Cement dominate the central and eastern regions. The total production capacity of major companies (Saudi Cement, Yamama, Qassim) exceeds 8-10 million tons annually per company, while Hail Cement's production capacity is around 2 million tons annually.

The sector has experienced fluctuations in demand in recent years due to the COVID-19 pandemic, but data from the General Authority for Statistics indicates a strong return to growth as the economy recovers and new projects are launched. Additionally, government decisions to restrict imports and protect local products are supportive factors for sector stability. However, the sector faces challenges such as fluctuating energy prices and rising raw material costs. Official indicators issued by the authority remain the primary reference for analyzing market trends and predicting the performance of companies listed on Tadawul.

Hail Cement Company was established in 2010 in Hail city in the northern part of the Kingdom, with fully paid capital, to become one of the main drivers of the building materials sector in the northern region. The company obtained industrial licenses to operate its integrated plant for producing white and gray cement, in addition to by-products such as clinker and gypsum. The company relies on local raw materials for its production and benefits from its proximity to raw material sources (limestone and gypsum) and the seaport (Duba), which reduces transportation costs and enhances its regional competitiveness.

Hail Cement is listed on the Saudi financial market (Tadawul) in the main market, subjecting it to strict oversight and periodic disclosures according to governance standards. The company's capital is approximately several billion riyals, with a market value estimated at around 1.136 billion Saudi riyals according to 2024-2025 data. The company is known for its reasonable annual dividend distribution policy and regularly announces its quarterly financial results.

Hail Cement plays an important role in meeting the demand for cement in the Hail region and neighboring areas, benefiting from housing and infrastructure projects implemented by the government as part of Vision 2030. The company also seeks to enhance its competitive capabilities through developmental plans and operational efficiency improvements, in addition to exploring merger opportunities with other companies like Qassim Cement. Thus, Hail Cement remains an example of Saudi companies that keep pace with economic developments and leverage data from the General Authority for Statistics to guide their strategies.

The financial performance of Hail Cement Company during 2024 and 2025 witnessed relative stability with moderate growth trends in revenues and operating profits. According to quarterly reports announced on the Tadawul website, the company recorded stable sales supported by increased construction demand in the northern Kingdom, especially with the launch of new residential and industrial projects in the region.

The company's market value is approximately 1.136 billion Saudi riyals, and the average share price ranges between (10–20) riyals depending on daily trading volume. The price-to-earnings (P/E) ratio is at moderate levels (10–15), reflecting stable net profits and the absence of sharp fluctuations in profit margins. The company relies on controlling production costs, especially amid declining global energy prices during 2024, which has led to improved profit margins compared to previous years.

Regarding distributions, the company announced an annual cash dividend distribution in the range of 5%–10% of the share value, a rate close to the average prevailing in the cement sector. The company focuses on enhancing operational profitability and maintaining a reasonable profit margin despite rising Construction Cost Index. It also continues to improve operational efficiency by developing production lines and updating equipment. The company's performance remains primarily linked to changes in cement demand, raw material prices, and developments in the construction sector in the Kingdom, along with any updates related to anticipated merger deals.

Hail Cement Company faces strong competition within the Saudi cement sector, which includes major and medium-sized companies distributed geographically across various regions of the Kingdom. Among the main competitors are companies like Saudi Cement (2120), Qassim Cement (3040), Yamama Cement, Southern Cement, and Riyadh Cement, along with other companies like Yanbu Cement and Arabian Cement. These companies possess larger production capacities and broader customer bases, giving them an advantage in market shares and sales.

Hail Cement's competitive advantage lies in its geographical location, allowing it to meet the increasing demand in the northern Kingdom and reduce transportation costs to regional projects. Its proximity to raw material sources and the seaport supports its competitiveness in terms of cost and supply speed. Nevertheless, the company's annual production volume remains lower than some major competitors; its production capacity is estimated at around 2 million tons annually, while some major companies exceed 8 million tons.

Competition in the sector enhances production efficiency and cost control, while also encouraging innovation and product development. Companies face challenges such as fluctuating energy prices, seasonal demand changes, and government policies related to protecting local products. Official indicators from the General Authority for Statistics remain a reference for assessing each company's share and sector growth forecasts, which directly reflects on Hail Cement's strategies in the local market.

In recent years, Hail Cement has witnessed significant developments, notably the announcement of a proposed merger deal with Qassim Cement, one of the largest companies in the sector. The exchange plan stipulated Qassim's acquisition of all shares of Hail through a stock swap, allowing for the creation of a larger entity with more efficient financial and human resources, enhancing the joint market share in the northern and central regions.

According to disclosures published on the Tadawul website, the company invited its shareholders to a general assembly to discuss the merger deal and approve the exchange terms, with a timeline set for completing the deal after obtaining regulatory approvals. The deal aims to achieve economies of scale, unify production lines, and reduce shared operational costs. The company also seeks to benefit from Qassim Cement's management expertise and expand its customer base.

This step is part of a broader trend in the sector towards mergers and acquisitions to address challenges of rising costs, increased competition, and enhance negotiating power with suppliers and customers. The merger of the two companies is expected to improve profitability and enhance competitiveness, especially amid the anticipated growth of infrastructure projects in the Kingdom. However, the results of the deal remain contingent on the speed of execution and the effectiveness of integration management, along with the continued high demand for cement in the local market.

The indicators issued by the General Authority for Statistics play a pivotal role in guiding the policies of investment companies and funds when evaluating listed cement companies in the Saudi financial market. For example, the 1.0% increase in the Construction Cost Index in October 2025 provides clear signals of increased demand for construction materials, positively reflecting on the expected sales volume for cement companies.

Institutional investment companies use these indicators to estimate risks and opportunities, determining the timing of entry or exit from the market. The Industrial Production Index is also relied upon to estimate industrial sector growth and forecast the financial performance of companies in the medium term. Data on consumer spending and per capita income issued by the authority also influence final demand expectations for real estate, and thus on the volume of cement sales.

The transparency of the statistical data issued by the authority allows investors to conduct comparative analyses between companies and estimate the impact of changes in production costs on profit margins. The indicators also assist in formulating geographic or sectoral diversification strategies, especially when data indicates growth in certain areas or sectors. Overall, the indicators from the General Authority for Statistics are the cornerstone of financial and investment analysis in the Saudi market.

The Saudi cement sector faces increasing challenges with the evolution of the national economy and changing market dynamics. Among the most prominent challenges are fluctuations in global energy prices, rising raw material costs, and increasing competition among local companies. Additionally, environmental protection policies and adherence to sustainability standards add new burdens that require additional investments in clean production technologies.

The General Authority for Statistics plays an important role in enabling the sector to face these challenges by providing accurate data on energy price developments, national production volume, and geographic distribution of demand. For example, statistics on mineral resources and industrial production indicators help companies plan for expanding production capacity or developing new products that meet market requirements.

Moreover, the authority's data supports market trend analysis in the medium and long term, allowing companies to estimate the impact of government policies or global changes on their operations. Statistical indicators also enable investors and analysts to monitor sector performance and anticipate growth opportunities or risks arising from saturation in certain areas or seasonal demand declines. In this context, the partnership between the General Authority for Statistics and the private sector remains a critical factor in enhancing the competitiveness of the cement sector and supporting its sustainability in the long term.

The statistical data issued by the General Authority for Statistics is one of the essential tools in economic forecasting and investment decision-making processes, especially in sectors linked to urban and industrial growth. Analysts and financial institutions use this data to develop models predicting market performance and estimating future demand for products such as cement and building materials.

By analyzing changes in the Construction Cost Index, expected spending on government and private projects can be estimated, thus predicting increases or decreases in sales for companies in the sector like Hail Cement. Additionally, indicators of consumer spending and per capita income provide signals about individuals' purchasing power, helping companies adjust their marketing and pricing strategies.

Investment companies and hedge funds rely on the authority's data to estimate risk levels and identify the most stable or growing sectors. Monthly and quarterly data also allow for monitoring rapid changes in the market and adapting to new economic conditions. Ultimately, statistical data represents a solid foundation for supporting strategic decisions in companies and enhancing the Saudi market's ability to keep pace with regional and global changes.

The General Authority for Statistics seeks to keep pace with global developments in data collection and analysis by investing in digital transformation and adopting the latest technologies. In recent years, the authority has launched several electronic platforms for field data collection, such as digital survey applications and centralized database systems, enhancing the speed and accuracy of data collection.

The authority is also working on developing artificial intelligence programs and big data analysis to enable it to monitor economic and social changes more quickly and accurately. It aims to expand the scope of open data and improve user access interfaces for users and companies, allowing both the public and private sectors to analyze data and extract insights easily.

Digital transformation is expected to enhance the authority's ability to issue more detailed indicators and provide customized reports that meet the needs of specific sectors such as industry or construction. These developments will also enhance transparency and enable investors to access up-to-date data in real-time, supporting strategic decision-making and enhancing the competitiveness of the Saudi economy on the international stage.