Glossary

Financial Terms, Explained

Plain-English definitions of the metrics, concepts, and UAE tax terms that matter for your business.

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The total value of recurring subscription revenue normalized to a one-year period.

The rate at which a startup spends its cash reserves before generating positive cash flow.

The direct costs attributable to the production of goods or services sold by a company.

A financial statement that shows the actual cash moving in and out of a business during a specific period.

A valuation method that estimates the present value of a business based on its projected future cash flows.

Earnings Before Interest, Taxes, Depreciation, and Amortization - a measure of operating profitability.

Revenue minus the cost of goods sold (COGS), showing how much a company earns from its core production activities.

Operating expenses not directly tied to producing a product, including sales, marketing, and administrative costs.

The original records that provide evidence a financial transaction occurred, forming the basis of accounting entries.

An official document issued by an employer confirming an employee's salary and employment details, widely required in the UAE.

A 9% federal tax on business profits exceeding AED 375,000, effective from June 2023.

A consumption tax levied on goods and services at each stage of the supply chain in the UAE at a standard rate of 5%.