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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

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.

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.

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.

Asset-Backed Security (ABS)

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

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.

Central Bank

The primary financial institution responsible for managing a country's money supply, interest rates, and often, overseeing the banking system's stability.

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.

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.

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.

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.

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.

Fluctuation

A disturbance in the price, value, or level of something due to market forces or external factors.

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.

Beneficiary Experience Design

A strategic and holistic approach to designing and enhancing the overall experience of beneficiaries. It involves understanding and mapping the beneficiary journey, identifying touchpoints, and designing interactions to create positive and meaningful experiences.

Viability Rating (VR)

A rating assigned by credit rating agencies to assess the creditworthiness and financial strength of financial institutions, including banks.

Sovereign Rating

Credit ratings assigned to national governments to evaluate their creditworthiness. These ratings are important for international investors and can impact a country's ability to borrow money in the global financial markets.

Security Dealing

To deal in a security, whether as principal or agent, and dealing include the sale, purchase, manage the subscription for or underwriting securities.

Direct Authorization

A direct purchase order authorizing the government entity to skip conducting the agreement and get by with the mutual correspondences if the contract value does not exceed one hundred thousand Saudi Riyal according to Government Tender and Purchasing Law.

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