The speed at which a startup or business spends its cash reserves each month. Particularly relevant for UAE-based startups, where runway management can determine whether a business survives to its next funding round.
Gross burn rate is your total monthly outgoings. Net burn rate is the difference between monthly cash in and cash out. If you have AED 1.2M in the bank and a net burn rate of AED 100,000 per month, you have 12 months of runway. UAE investors will always ask for burn rate and runway projections. In a high-cost operating environment like Dubai — where office space, visas, and mandatory gratuity accruals add up quickly — burn rate management is a survival skill.
See also: Cash Flow Forecast, Working Capital, Break-Even Point

