Saudi Arabia has introduced significant changes to broaden participation in its Parallel Market, known as Nomu. The Capital Market Authority has approved new criteria that expand access to individual investors and ease key requirements for entering the market. The move aims to improve liquidity, widen participation and reinforce the Kingdom’s ongoing efforts to strengthen its capital markets.
Broader Access for Degree Holders
One of the most notable adjustments is the decision to allow a larger group of university graduates to qualify as eligible Nomu investors. Holders of a bachelor’s degree in finance, accounting or investment can now participate. Previously, the qualification threshold required a master’s degree in finance, accounting or a field related to securities. Professional certifications such as SOCPA fellowship and other approved credentials also allowed entry.
The updated criteria create a more inclusive path for young professionals and recent graduates who aim to participate in the market at an early stage in their careers. The change also aligns with wider regulatory updates aimed at supporting talent development in the financial sector.
Lower Trading Value Requirements
The Capital Market Authority has also eased financial requirements for individuals seeking access to Nomu. The threshold for the total value of executed trades during the previous 12 months has been lowered to 20 million Saudi riyals from the earlier requirement of 40 million. The adjustment looks to expand the number of qualified investors and support higher trading activity.
Opening the Door to Current and Former Board Members
The updated rules further allow individuals who currently serve on the boards or specialized committees of companies listed on Nomu to invest in the market. Individuals who previously held these positions also qualify. The decision reflects a recognition that these professionals possess deep knowledge of market dynamics. The believe they can responsibly participate without raising governance concerns.
A Step Toward Greater Liquidity and Market Development
The broader changes are part of a larger package of amendments that aim to support the growth and efficiency of the Parallel Market. By easing entry barriers and widening the investor base, the Capital Market Authority seeks to attract a more diverse set of participants. This aims to improve liquidity, strengthen market depth and enhance the overall investment environment.
Nomu was originally created to support the listing and growth of small and medium sized companies. They want to do this through lighter listing requirements and a more flexible regulatory framework. Expanding the investor pool forms a natural extension of this mission. Moreover, it helps the market play a more active role in Saudi Arabia’s economic transformation.
With these new criteria now in effect, Nomu looks to offer broader opportunities for investors. Not just that, it will support the development of a more dynamic and inclusive capital market ecosystem.
