Why this matters in Saudi Arabia
Nomu comes up constantly in discussions of Saudi listings, and two questions follow it every time: what is it, and who can actually buy shares on it. Both have clear answers, and both matter — for growth companies deciding where to list, and for investors working out whether they can participate. This is a descriptive explainer, not investment advice.
What Nomu is
Nomu — the Parallel Market — is the Saudi Exchange's equity venue for growth and smaller companies, launched in 2017. The Saudi Exchange runs two equity markets: the Main Market, home to the TASI index and the Kingdom's large and mid-cap issuers, and Nomu, built for companies that are not yet at Main Market scale.
Its framework is lighter by design. A Nomu issuer needs a minimum market capitalization of SAR 50 million, a public float of at least 20%, around 50 public shareholders, and one year of operating history — and no profitability track record is required. Periodic reporting is half-yearly rather than quarterly. The trade-off for that lighter framework is the restriction on who can invest, and a recognized path: after two calendar years on Nomu, a company that meets the Main Market's requirements can migrate, against a lower market-cap test. Nomu is both a financing channel and a stepping stone.
Who can invest
Nomu is restricted to qualified investors as defined by the CMA. The category covers several groups: capital market institutions; the government, government bodies, and recognized international and exchange entities; qualified foreign investors; and other eligible legal persons.
It also covers eligible individuals, and this is where the rules are most specific. An individual can qualify by meeting thresholds tied to the size of their securities portfolio or their trading activity over the prior year, by holding a recognized professional qualification or a relevant degree in finance, accounting, or investment, or by serving — or having served — on the board or a committee of a Nomu-listed company. The criteria were eased in late 2025: the aggregate-trading threshold was lowered, holders of bachelor's degrees in the relevant fields were added, and serving and former Nomu board members were included.
Why the restriction exists, and where it is heading
The qualified-investor gate is not arbitrary. Growth-stage equities carry a higher risk profile than established large-cap shares — less financial history, smaller scale, often a less liquid market — and the framework presumes a qualified investor is better placed to assess that risk. The restriction protects less-experienced investors from a segment built for those who can evaluate it.
The direction, though, is toward access. The CMA has widened the qualified-investor pool over time, all categories of non-resident foreign investors can now participate in Nomu, and the late-2025 easing brought in new categories of individuals. The market is becoming more open while keeping the gate that defines it. For a growth company, that widening pool is part of what makes Nomu a viable place to raise capital — and part of why the choice between Nomu and the Main Market deserves real analysis rather than a default.
