Financial Terms Starting With S

A bank account designed to receive regular salary credits and provide day-to-day banking services. Features, minimum salary requirements and fees vary by bank and account package.

A document from an employer confirming information such as employment status, job title, salary and joining date. Banks commonly request it when assessing salary-based credit products.

An arrangement where an employer credits an employee's salary to a specified bank account. Some loans and banking packages require salary transfer, while others are available without it.

A letter or undertaking relating to payment of an employee's salary into a specified bank account, often used as part of a salary-transfer loan or account process. The exact format depends on the bank and employer.

The UAE's independent financial ombudsman unit for eligible complaints involving CBUAE-regulated Licensed Financial Institutions and insurance companies. A complainant generally must first file an official complaint with the institution and wait 15 calendar days before escalating an unresolved eligible matter.

A deposit account intended to hold money while providing access to funds and, on some products, interest or profit. Minimum-balance rules, withdrawal features and returns vary by bank.

A credit card supported by pledged cash or a deposit held as security. Under current UAE retail rules, customers who do not meet the stipulated annual income threshold may be considered for a card against a qualifying pledged deposit, subject to issuer policy.

A loan or financing facility supported by collateral such as a deposit, vehicle, property or other eligible asset. Security can reduce the lender's risk but creates enforcement risk for the customer if obligations are not met.

Money placed with a financial institution and pledged as security for a facility. While pledged, the customer may have restricted access to the funds until the secured obligation is released.

The resolution of a financial obligation. In lending it can mean paying an outstanding facility; in insurance it means the insurer resolving an accepted claim through payment, repair or another covered benefit.

Financing structured and governed in line with applicable Shari'ah principles rather than conventional interest-based lending. The product should state the underlying structure and relevant Shari'ah basis.

An insurance product funded by one upfront premium rather than recurring payments. Benefits, surrender terms and investment exposure depend on the policy type.

A business falling within the relevant size criteria used by authorities, banks or programmes. Definitions can differ by purpose, so a company should not assume that qualifying as an SME under one framework automatically qualifies under another.

Also known as

SME

The CBUAE framework setting conduct, disclosure, responsible-financing and complaint-handling standards for eligible SME customers of regulated financial institutions. Regulation C2/2026 became effective on 13 September 2026.

Phishing carried out through text messages or messaging platforms, usually to trick a person into opening a malicious link, sharing credentials or making a fraudulent payment.

Information explaining where money used in a particular transaction or relationship comes from, such as salary, business revenue, sale proceeds or investment income. Banks may request evidence as part of KYC and financial-crime controls.

Also known as

SOF

Information explaining how a person accumulated their overall wealth over time, such as employment income, business ownership, inheritance or investments. It is broader than Source of Funds for one transaction.

Also known as

SOW

An instruction set up by an account holder for the bank to make recurring payments or transfers at specified intervals and amounts until the instruction ends or is cancelled.

The balance shown on a credit card statement for that billing cycle. Paying the full statement balance by the due date can be important for preserving the interest-free treatment of eligible purchases, subject to the card terms.

The date on which a credit card issuer closes a billing cycle and generates the statement. Transactions posted after that date generally appear on the next statement.

A lower limit that applies within a wider overall limit. Insurance policies can set sub-limits for specific benefits, while card issuers can apply separate sub-limits for cash advances or other transaction types.

The insurer's right, after paying an eligible claim, to pursue recovery from a responsible third party where permitted. The insured should avoid actions that improperly prejudice those recovery rights.

The specified amount payable under certain life or protection policies when the covered event occurs, subject to the policy terms and claim assessment.

The maximum value insured for specified property, liability or benefits under a policy, subject to limits, excesses and other policy terms. It should be reviewed to reduce the risk of underinsurance.

An additional credit card issued to an approved person under the primary cardholder's account. The primary account remains responsible for spending and payment according to the issuer's terms.

A charge or adjustment applied when an eligible long-term insurance or savings product is surrendered before the end of the planned term. It can materially reduce the amount returned in early years.

The amount payable if an eligible long-term insurance product is ended early, after applying the policy's valuation method, surrender charges and other adjustments. It can be lower than the total premiums paid.

A code used to identify a bank or financial institution in international financial messaging. For many transfers, the beneficiary's IBAN identifies the account while a BIC or SWIFT identifier helps identify the institution.

Also known as

BIC