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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

Dual Unit Price

A settlement of the unit price calculated, in accordance with the financial statements, to which the expected credit losses are registered in the financial statements of the fund, against the unit price calculated for dealing purposes.

Durable Goods

Long-lasting consumer goods such as cars, appliances, and furniture that are used over time.

Variable-Rate Bond

A debt instrument where the interest rate is periodically adjusted based on a benchmark or index.

Savings Bond

Bonds typically issued by governmental or banking entities, designed for long-term investment with a fixed interest.

Accounting Record

All documents, books, and accounting entries that contribute to preparing the financial statements including: records of assets, liabilities, and supporting documents, such as: checks, payment receipts, receipts, invoices... etc.

Prime Interest Rate

The interest rate that banks charge their most creditworthy customers.

Standard Price

The price according to the standard price list as established by the Tax Authorities of GCC countries. The standard price is also known as the minimum price or minimum value.

Macroprudential

Financial regulations and policies designed to address systemic risks in the financial system as a whole.

Data Brokers

Companies that collect, analyze, and sell consumer and business data for marketing and financial purposes.

Corporate Bond

A debt security issued by a corporation to raise capital. Its credit rating reflects the company's ability to make interest payments and repay the principal on the bond.

Tax-Exempt Bond

A bond where interest income is not subject to taxation, often issued by governments.

Long-Run Treasury bond (T-bond)

Debt securities typically issued by government entities, central banks, banks, or other institutions, maturing after more than 10 years.

Green Bonds

A type of bond used to finance environmentally friendly projects. The issuer commits to using the bond proceeds for projects with positive environmental impacts.

Investment-Grade Bonds

Bonds rated relatively high by credit rating agencies, suggesting a high likelihood that the issuer will meet its financial obligations (interest and principal), and carrying relatively lower risk compared to lower-rated bonds.

Primary Market

The market where newly issued securities, such as stocks and bonds, are bought and sold for the first time, typically through initial public offerings (IPOs) or bond issuances.

Usability

Usability refers to the ease with which users can effectively and efficiently interact with a product, system, or service to achieve their intended goals. It is a fundamental aspect of user experience (UX) design, emphasizing how user-friendly and accessible a design is.

Duty-Free Market

The licensed building or place wherein goods are placed free of customs duties for purposes of display or sale.

Parallel Market

The market of Exchange where shares, that have been registered and offered pursuant to Part 8 of the Rules on the Offer of Securities and Continuing Obligations, are traded.

Capital Market

A financial market for buying and selling long-term securities like stocks and bonds.

Contractionary Fiscal Policy

A policy aimed at reducing government spending or increasing taxes to slow down the economy and reduce inflation.

Workflow

A defined sequence of tasks, processes, or steps that need to be completed in a specific order to achieve a particular goal or outcome.

Purchase of Tax Stamps

Obtain tax stamps by requesting them according to the Zakat, Tax and Customs Authority's form, provided that specific criteria are met, before the excise goods are released for consumption.

Distribution Channel Partnerships

When the vendor uses a partner to resell, manage, and/or deliver the product to end customers.

Capital Company

By this definition, capital companies include joint-stock companies, limited liability companies, and limited liability company with shares. Investment funds are considered capital companies for the purposes of income tax law.

Subsidiary

In relation to a company, another company which it controls.

Listed Company

Any company with securities of any kind listed on the Exchange.

Affiliate Partner

Partners who are a subset of marketing partners.

Source Code

The fundamental component of a computer program created by a programmer.

Secondary Market

A financial market where existing securities, such as stocks, bonds, or derivatives, are bought and sold among investors, rather than directly from the issuer.

Commodities Market

A marketplace where raw materials like oil, gold, and agricultural products are traded.

Global Markets

International financial and trade systems where goods, services, and investments are exchanged.

Production Factors Market

A market where productive resources (land, labor, capital, and entrepreneurship) are bought and sold. Businesses purchase labor from workers, capital from investors, etc.

Emerging Market

Economies in transition from developing to developed status, characterized by rapid growth, increasing industrialization, and market liberalization.

Multi-Entity Sovereignties

Relationships, transactions, or agreements that involve multiple sovereign states, often in the context of international trade, diplomacy, or financial cooperation.

Expansionary Monetary Policy

A policy aimed at increasing the money supply and reducing interest rates to stimulate economic growth.

Real Estate Companies

Companies whose properties represent more than 50% of their assets, or their capital.

Insurance Company

Any company offering insurance services in exchange for premiums, under the supervision by SAMA.

Terms of Business

A written statement, provided to a client, of the terms on which a capital market institution will conduct securities business with or for the client.

Fund’s Terms and Conditions

The contracts containing those disclosures and provisions required under the Investment Funds Regulations and the Real Estate Investment Funds Regulations, signed between the fund manager and the unitholder.

Agency Partner

Typically agencies who either send you leads or close business on your behalf.

Registration Certificate

A certificate obtained by the establishment in the event that the registration requirements in the (Zakat, Tax and Customs Authority) ZATCA system are fulfilled; it must be obtained within the first fiscal year in the first 12 months of practicing the activity.

Merchandise Exports

They are tangible goods that are produced in a country and sold to other countries. These goods include agricultural, industrial, and mineral products, such as crude oil, natural gas, petrochemicals, food products, clothing, automobiles, and electronic devices.

National Exports

In accordance with international trade regulations, this refers to all goods intended for export outside the Kingdom, which have been either.

Non-Oil Exports

Goods and services that do not contain oil or its derivatives, including agricultural products like fruits and grains, industrial products like cars, electronics, minerals like gold and copper, as well as services like tourism and education.

Net Liquid Assets

Assets funded by equity (common stock, disclosed reserves or other retained earnings) which are not otherwise pledged and freely available to cover General Business Risk.

Net of Wealth

The total assets minus total liabilities of an individual or organization.

Health of Economy

A measure of economic stability based on factors like GDP, inflation, and employment.

Conflict

Disputes, disagreements, or opposing interests between individuals, departments, or organizations, which can impact decision-making and operations.

Margin Transaction

A transaction where a Capital Market Institution makes a loan to a client of a portion of the cost of the transaction.

Monetary Market Fund

An investment fund the sole objective of which is to invest in short-term securities and money market transactions in accordance with the Investment Funds Regulations.

Private Fund

An investment fund which is established in the Kingdom and which is not a public fund, and the units in which may be offered by the fund manager, in accordance with Part Five of the Investment Funds Regulations, to investors in the Kingdom.

Public Fund

An investment fund which is established in the Kingdom and the units in which may be offered by the fund manager, in accordance with Part Four of the Investment Funds Regulations, to investors in the Kingdom otherwise than by way of a private placement.

Specialized Public Fund

A mutual fund with a specific investment objective, offered to the public.

Zakat Certificate

A certificate issued to the Zakat payer upon his request; to be used in proceeding with other governmental procedures. It is issued only when there are no cases of submission of declarations, late payments, or any current obligations.

Instant Certificate

A certificate issued immediately after submitting declarations related to Zakat for a specific financial period and paying its related payments.

Business Owner

The person responsible for business requirements related to a system or asset.

Oil Exports

Goods that include crude oil and its derived products such as natural gas, refined petroleum products (like gasoline, diesel), and petrochemical products that rely on oil extraction as the main source.

Fund's Net Assets Value

For the purposes of the Investment Funds Regulations and the Real Estate Investment Funds Regulations, means; the Fund’s Total Assets Value minus its liabilities.

Net Assets Value

For the purposes of the Investment Funds Regulations and the Real Estate Investment Funds Regulations, means; the Fund’s Net Assets Value divided by the number of units outstanding.

External Shock

An unexpected event from outside a country that disrupts its economy, such as natural disasters, pandemics, geopolitical conflicts, or financial crises.

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