Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

Running a business in the UAE means navigating a financial vocabulary that can feel overwhelming — especially if accounting is not your background. This glossary has been built specifically for UAE business owners, startup founders, and entrepreneurs. Every definition is written in plain English, tied to UAE regulations, and linked to deeper guides where relevant. Bookmark this page. You will come back to it.

Retention

Retention refers to the ability of a company to keep its employees, customers, or other stakeholders over time.

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Revenue Recognition

The accounting principle governing when income is recorded. Under IFRS 15 (adopted in the UAE), revenue is recognised when performance obligations to a customer are satisfied — not simply when cash is received.

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Right of First Refusal (ROFR)

A right of first refusal (ROFR) is a legal term that refers to the right of a person or entity to have the first opportunity to purchase or acquire something before it is offered to others.

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Roll-Up Vehicle (RUV)

A roll-up vehicle, also known as a RUV, is a company that is created specifically for the purpose of acquiring and consolidating smaller companies in a particular industry or market.

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Runway

In the context of a business or startup, runway refers to the amount of time that a company has before it runs out of cash or other resources and is unable to continue operating.

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Sales and Marketing Efficiency

Sales and marketing efficiency is a measure of the effectiveness of a company's sales and marketing efforts in generating revenue.

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Sales Pipeline

A sales pipeline is a visual representation of the various stages of the sales process, from initial contact with a potential customer to the final sale.

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S Corporation (S Corp)

An S corporation, also known as an S corp, is a type of business entity that is recognized under United States federal income tax law.

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Serviceable Available Market (SAM)

Serviceable available market (SAM) is a term used in business and marketing to refer to the portion of a market that is able and willing to purchase a company's products or services.

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Serviceable Obtainable Market (SOM)

Serviceable obtainable market (SOM) is a term used in business and marketing to refer to the portion of a market that is both willing and able to purchase a company's products or services.

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Simple Agreement for Future Equity (SAFE)

A simple agreement for future equity (SAFE) is a type of investment agreement that is commonly used in the startup ecosystem.

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Small Business Relief

A UAE corporate tax provision allowing businesses with annual revenue below AED 3 million to elect to be treated as having zero taxable income — effectively a 0% rate.

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