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Financial and Economic Dictionary

A collaborative initiative uniting 11 partners from the government sector, this dictionary is built to serve as a unified reference and vital knowledge hub for specialists and enthusiasts alike. It aims to enhance financial literacy, support the Kingdom's development process in light of Saudi Vision 2030, at a time when terminology is no longer just a linguistic tool, but have become pillars of knowledge on which policies are built, legislation is formulated, and dialogue between specialists, decision-makers and relevant authorities in the financial sector is managed.

Your gateway to comprehensive financial knowledge with more than 2000 financial and economic terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
أ ب ت ث ج ح خ د ذ ر ز س ش ص ض ط ظ ع غ ف ق ك ل م ن ه و ي

Most searched terms

Freelance Economics

A labor market based on short-term contracts and freelance work instead of permanent jobs.

Shadow Economy

All economic activities and transactions, whether legal or illegal, that are not recorded in the official accounts or regulations of the state, and whose transactions are subject to taxation if reported.

Supply-Side Economics

An economic theory emphasizing production, investment, and tax cuts to stimulate growth.

Debt Extinguishment

The gradual repayment of a loan through scheduled payments or the systematic reduction of an intangible asset’s value over time.

Commodity

A basic good or raw material used in commerce, interchangeable with other goods of the same type.

Public Works Exempted from Competitions

Public procurement projects exempt from competitive bidding processes.

Moderate Probability

The likelihood of an event occurring with a degree of uncertainty that falls between low and high probabilities.

Asset-Backed Security (ABS)

A financial instrument backed by a pool of assets, such as loans or receivables, which generate cash flow.

Private Sector Performance

The assessment of the effectiveness and efficiency of privately owned economic institutions in achieving economic goals such as profits, growth, and job creation, including indicators such as efficiency, productivity, and growth rates.

Credit Facilitates

An agreement or arrangement established with a financial institution that allows a borrower to access a specified amount of credit or loans on flexible terms as needed.

Credit Analysis

It involves evaluating the creditworthiness of borrowers or issuers of financial instruments by assessing their ability to repay debt and the associated credit risk.

Production of Excise Goods

Any activity in Saudi Arabia involving the manufacture, cultivation, or changing of components of excise goods to the extent that makes it subject to tax.

Release of Goods

The action by the Customs to permit goods undergoing clearance to be placed at the disposal of the persons concerned.

Purchase Order Date

Purchase Order Date, the date on which a purchase order is issued to a supplier or vendor, specifying the items, quantities, and terms of the purchase.

Expected Financial Impact

The anticipated effect on the entity's spending resulting from the realization of expenditure efficiency opportunities.

Rating Procedure

A decision made by a credit rating agency to change the credit rating or outlook of an entity or financial instrument, often impacting investor perceptions and terms.

Federal Reserve

The central banking system of the United States responsible for conducting monetary policy and regulating the financial industry.

Supply-Demand Unequilibrium

A market condition where supply and demand are not in equilibrium, causing price volatility.

Last Action on Disbursement Order

The last action performed on the payment order from the date it was created.

Investment Management

Making investment decisions for non-real-estate investment funds and clients’ portfolios in circumstances involving the exercise of discretion.

Listing

Listing securities on the Exchange either on the Main Market or on the Parallel Market, or, where the context permits, the application for listing.

Dividend

A payment made by a corporation to its shareholders as a portion of its earnings. It is typically distributed periodically, such as quarterly or annually.

Foreign Investment

Directing the savings of an economy in a specific geographic region to the formation or acquisition of new real capital assets within the Kingdom's economy in a specific geographic region.

Supplier Name

The name of the entity to which the competition was awarded, as stated in the commercial registry.

Activity Name

The name of the main activity of the competition on the basis of which the bidding will be announced by the government entity.

Debit Notice

A commercial document issued by the supplier or the seller to the buyer, as a document that proves the increase in the buyer's debt due to the seller or the supplier. It is useful for the purposes of value-added tax, and the adjustment.

Government Assets

Assets owned by governmental or public entities, including tangible assets (such as land and buildings) and intangible assets (such as intellectual property rights), which are used to achieve public goals and provide services to citizens.

Illiquid Assets

Fixed assets, financial resources which are not readily realizable, or deposits not available for withdrawal within three months or less.

Ongoing Reforms

Economic policies aimed at improving structural aspects of the economy.

Endowment Fund Assets

Assets that are managed by a third party for specific objectives, and may include both monetary and non-monetary assets.

Ordinary Course of Business

A usual activity that is normal to the day to day operations of the business. Occasional or infrequent activities do not constitute an ordinary course of business.

Tax Return

The information and data specified for tax purposes and submitted by a taxable person or a person authorized to act on his behalf for each tax period in accordance with the form prescribed by the Zakat, Tax and Customs Authority.

Peer-to-Peer Lending

A decentralized financial system where individuals lend and borrow directly from each other.

Payment Mechanism

Contractual arrangements through which the Private Party is compensated in a Public-Private Partnership (PPP) project. This mechanism outlines the timing, amount, and conditions under which payments will be made.

Trusts

Amounts owed to third parties by the government body.

Compliance

To meet all commitment requirements, either mandatory requirements such as: legislation, regulations or optional requirements such as: internal policies of the entity and standards of the sector.

Liability

Financial obligations and debts owed by an individual, institution, or entity that usually require repayment or fulfillment.

Decline

A reduction in value, performance, or economic activity. It may indicate a negative trend or change.

Chargeable Revenue

The revenue collected and deposited into the state treasury

Direct Revenues

Revenues accrued to the entity from its primary activity, as authorized under its governing regulations and executive bylaws.

Aggregate Expenditure

The total spending on an economy’s goods and services within a specific period, including consumption, investment, government spending, and net exports.

Tax Revenue

Revenue collected through taxation.

Aggregate Revenues

It is the total amount collected from oil and non-oil revenues, including returns from rents, taxes, fees, investment, and returns on assets.

Primary Seller

A financial institution authorized to participate in government bond auctions and conduct market operations on behalf of a central bank or government.

Business Environment

External and internal factors affecting a company's operations, such as regulations, competition, and economy.

Infrastructure

Public utilities or assets that directly or indirectly provide public services.

Selling

Selling the security for consideration, or surrendering, assigning, or converting its rights, or assuming any liability arising from it.

Date of Quotation Letter

The date of sending the quotation letter to the entity.

Claim Creation Date

The date on which the claim is created via Etimad.

Variance

The percentage difference between the expected and actual cash flows.

Arbitrage

A trading strategy that exploits price differences of an asset in different markets to generate risk-free profit.

Aggregate Planning

A strategy for balancing production and demand over a specific period to optimize costs and resources.

High-Frequency Trading

A form of algorithmic trading that uses powerful computers to make rapid trades in milliseconds.

Dark Pools

Private financial exchanges where institutional investors trade large volumes of securities anonymously.

Ratio Analysis

Examining and interpreting financial ratios, such as profitability ratios or liquidity ratios, to assess a company's financial position and performance.

Financial Hedging

A hedge is a methodology to reduce the risk of adverse price movements of the interest rate fluctuations and exchange rates by trading financial derivatives.

Delinquency

The failure to make scheduled debt payments on time, often leading to penalties or default.

Customs Clearance

Documentation of the customs declarations for the imported, exported and transit goods according to the customs procedures.

Application for Registration and Offer

The registration of securities with the Capital Market Authority (CMA), or where the context permits, the application to the Authority for registration and offer of securities.

Cash Inflows

The money received by a business or individual, typically from sources like sales, investments, or loans.

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