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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

Market Maker

A financial market institution licensed to engage in trading activities that enters buy and sell orders for securities on an ongoing basis for the purpose of providing liquidity for those securities in accordance with the regulations, rules, or procedures issued by the Capital Market Authority (CMA).

Real Estate Investment Traded Fund (REIT)

A real investment fund, the units of which are traded on the Main Market or the Parallel Market, and whose primary investment objective is to invest in constructionally developed real estates, able to generate periodic and rental income, and distribute a specified percentage of the fund's net profit in cash to the unitholders in such fund during its operation period, at least annually.

Code of Professional Conduct

A document and reference that are necessary to help any employee to do his daily decisions and work in a sound manner, the employee should adhere to laws and regulations accordingly. It also clarifies the principles of the entity and the values linking them to the way the employee is expected to perform his/her work.

Balance of Payments

A systematic statistical statement that records a country’s economic transactions with the rest of the world for a specific period, based on standardized concepts, definitions, classifications and data collection practices, in order to ensure national and international comparability.

Government Finance Statistics (GFS)

A standardized framework for collecting and presenting government financial data consistently, including revenues, expenditures, financing, assets, and liabilities, used to analyze fiscal performance, compare data across countries, and support financial and economic decision-making.

Market Research

A systematic and objective investigation of a market to gather and analyze information about its size, trends, dynamics, competition, and other relevant factors.

Gross Profit

The profit a company earns after deducting the direct costs of producing or purchasing goods or services, representing the difference between revenue and the cost of goods sold.

Market Capitalization (Market Cap)

The total value of a company's outstanding shares of stock, calculated by multiplying the share price by the number of shares.

Head of the independent body

The head or governor of an organizationally and financially independent entity such as a government agency, institution, or fund.

Debt Collection Letter

A written communication sent to a debtor to request payment for an outstanding debt, outlining the amount owed, terms, and consequences of non-payment.

Fees

Are charges or payments required for services, transactions, or the use of certain financial products, such as account maintenance fees or service charges.

Collection Fees

Collection fees (percentage) imposed by the shipping company, where overseas freight and other charges are to be collected.

Exchangeable Debt Instrument

A debt instrument whose holder has the right to exchange it for shares in a company in which the issuer of that instrument owns a number of shares equal to or greater than the number of shares that can be exchanged for the exchangeable debt instrument.

Customer-Centric Risk Management

Identifying risks that could impact customer experience and satisfaction and taking the necessary arrangements to reduce or deal with it.

Central Bank

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

Contract Expiry Date

The date of termination of the contractual engagement between the government entity and the other party according to the conditions and regulations mentioned in the contract.

Contract Award

The act of an entity confirming the conclusion of a contract with a specified third party after completing the tendering procedures, for the provision of services, execution of a project, or supply of the required goods.

Developing Economies

Countries facing challenges in economic growth, relying mostly on agriculture and natural resources, and dealing with issues in infrastructure, education, and healthcare.

Behavioral Economics

A field of economics that studies how psychological and emotional factors influence economic decisions.

Consumption

The process of using goods or resources directly in economic activities, either in production or personal consumption.

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.

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