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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

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Most searched terms

Pricing Based on the Neutral Price

The pricing of a service/ goods/capital loan or intangibles which two or more independent enterprises determine according to market forces and independent transaction conditions.

Operating Investment Funds

Performing operations related to investment funds, including the calculation of its net assets value and the management of subscription and redemption for its units.

Experience Design

The approach focuses on creating and optimizing the overall experience users have when interacting with a product, service, or system. This includes aspects like user interface design, interaction design, visual design, information architecture, etc.

Interactive Design

Design based on continuous communication with the end user and their participation in the design of the future service or product.

Visual Design

A design approach focused on using images and graphics to communicate concepts and ideas.

Rating

An evaluation or assessment assigned by a credit rating agency to indicate the creditworthiness, quality, or risk associated with an entity or financial administration.

Issue Rating

A Credit Assessment assigned to a specific financial instrument, such as a bond or preferred stock, rather than to the issuer as a whole.

Risk Rating

A classification assigned to borrowers or securities to indicate their credit risk, often used by lenders and investors to make lending and investment decisions.

Long-Term Foreign-Currency Issuer Default Rating

A rating assigned by credit rating agencies to evaluate the credit risk of an issuer's ability to meet its foreign-currency obligations over an extended period.

Cash Flow from Investing

Activities that involve cash inflows and outflows related to the purchase or sale of long-term assets, such as real estate, equipment, or investments in other companies.

Cash Flow from Financing

The activities includes cash inflows and outflows related to transactions with the company's owners and creditors, such as issuing or repurchasing stock, paying off loans, or obtaining new financing.

Post-Clearance Audit

The structured examination of a business' relevant commercial systems, sales contracts, financial and non-financial records, physical stock and other assets as a means to measure and improve compliance.

Arranging

Introducing parties in relation to offering of securities, arrangement of its underwriting, or advising on corporate finance business.

Subordination

A feature in debt instruments that ranks the claims of certain creditors or bondholders below those of others in the event of a default or liquidation.

Structural Change

A sustainable shift in the structure of the economy from reliance on a single sector or main source of income (such as oil or agriculture) to a diversified economy based on multiple sectors with higher productivity.

Pricing

The process of determining the value or cost of a product, service, or financial instrument, often influenced by supply and demand, competition, and market conditions.

Number Sequence

It is represented by three digits of the entity code, which identifies the number of main departments in the entity.

Administrative Settlement of Customs Offence

The procedure established under national legislation under which the Zakat, Tax and Customs Authority is empowered to resolve a misdemeanor either through adjudication or by means of a settlement.

Functional Settlement

Matching the updated and transferred jobs during the fiscal year to the cadre of government entity.

Compromise Settlement

An agreement pursuant to which the Zakat, Tax and Customs Authority, in accordance with its granted powers, consents to waive legal proceedings related to a customs offense, provided that the person involved in the offense complies with specified conditions.

Data and Information Classification

The process of categorizing data and information based on sensitivity levels for security controls.

Functional Classification (COFOG)

The classification of expenses (expenditures and transactions on non-financial assets) depending on the functions, which the government seeks to achieve according to the government financial statics and the requirements of the international monetary funds.

Transitory Inflation

Temporary inflation caused by short-term factors that are expected to subside over time.

Acceleration

A clause in financial agreements that allows a lender to demand full repayment under specific conditions.

Customs Tariff

The nomenclature containing the designations of goods, the categories of customs duties to which they are subject, and the rules and notes therein relating to the types and classifications of goods.

Enhancing Beneficiary Participation

Involvement of beneficiaries in digital government service design through obtaining their insights and ideas on service delivery to help government agencies understand their experiences.

Foreclosure Suspension

Temporary moratorium on property repossessions to help distressed borrowers.

Commentaries

Written or oral explanations or clarifications of financial data or market trends, usually provided by experts or analysts.

Offset Compensation

Any condition or undertaking that promotes local development or improves balance of payments regarding any party such as use of local content, technology licenses, investment, counter trade and similar procedures.

Customer Feedback

Collecting feedback or reviews from beneficiaries about their experiences, the provided services, or resolving complaints.

Standard Change

Routine changes that don't impact services or cause outages.

Economic Inequality

The disparity in income, wealth, and opportunities among different groups within an economy.

Customer-Centric Product Development

Involve beneficiaries in the product development process to ensure their needs and preferences are met through workshops and meetings.

Break-Even

Break-even, refers to the point at which total revenue equals total costs, resulting in neither profit nor loss.

Recovery

The stage of an economic cycle where economic conditions, employment, and business activity gradually improve after a period of recession or downturn.

Credit Enhancement

It involves taking steps to improve the creditworthiness of a borrower or a financial instrument. This can include collateral, guarantees, or insurance to reduce the risk associated with lending or investing.

Non-Standard Change

Changes related to enhancement and customization requiring CAB approvals, categorized by risk and impact.

Career Progression

The development and career advancement of an individual within an organization, often involving promotions and increased responsibilities.

Beneficiary Segmentation

Segmenting beneficiaries into groups based on shared characteristics or behaviors, such as age, gender, nationality, and the nature of their interaction with services and products, to target them with specific strategies according to their nature and interaction patterns.

Stock Market Volatility

The degree of price fluctuations in the stock market over time.

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