Saudi Arabia has taken an important step toward strengthening and expanding its financial sector by opening the Parallel Market Nomu to new groups of investors. The Capital Market Authority (CMA) has approved a set of amendments aimed at making investment access easier, broader, and more flexible. These changes are designed to attract more participants, enhance liquidity, and support the Kingdom’s overall economic transformation goals.
The new reforms align with the ongoing national effort to build a robust financial system that provides opportunities for individuals with diverse backgrounds. By reducing restrictions and recognizing modern educational pathways, the CMA is paving the way for greater participation in the capital market.
Expanding Eligibility Through Educational Qualifications
One of the most notable changes in the new rules is the inclusion of bachelor’s degree holders among eligible investors for the Parallel Market. Individuals with degrees in finance, investment, or accounting are now permitted to participate in the Nomu market.
Previously, the eligibility criteria were much stricter, focusing mainly on advanced academic qualifications such as master’s degrees or professional certifications. This created a high entry barrier for many aspiring investors who held relevant knowledge but lacked the required credentials.
By opening the door to bachelor’s degree holders, the CMA aims to align investor qualifications with the modern workforce. Many graduates from finance-related disciplines possess practical knowledge, analytical skills, and academic training that prepares them to make informed investment decisions. This update not only expands the investor base but also empowers young professionals eager to begin their investment journey.
Broader Recognition of Professional Experience
In addition to educational qualifications, the CMA has also expanded eligibility to include individuals with significant professional experience in the financial sector. This includes anyone who currently serves or has previously served as a member of the board of directors or specialized committees of companies listed on the Parallel Market.
Board members and committee representatives possess a deep understanding of corporate governance, financial reporting, risk management, and market operations. Allowing these individuals to invest in Nomu strengthens the pool of experienced investors who can contribute to informed and responsible market activity.
This decision acknowledges the importance of hands-on corporate experience and highlights the CMA’s effort to recognize practical expertise alongside academic credentials.
Easing Investment Experience and Transaction Requirements
The CMA also introduced amendments that simplify the investment experience required to qualify as an investor in the Parallel Market. The previous framework required individuals to complete at least 10 quarterly trades with a total value of SR40 million over the past 12 months. This structure demanded consistent, high-volume trading every quarter, creating an unrealistic requirement for many.
Under the new amendments, the criteria have been significantly eased. Now, an individual must only have executed trades with a total value of SR20 million in the capital market during the last 12 months. This eliminates the quarterly trading requirement and reduces the financial threshold by half.
This update reflects the CMA’s intention to balance accessibility with responsibility. Investors must still demonstrate experience and financial capability, but the conditions are now far more realistic and achievable. This will allow more participants to enter the market without compromising regulatory standards.
Establishing Clear Definitions for Qualified Investors
Another important part of the CMA’s reform is the clarification of the term qualified investor in the Parallel Market. Previously, the criteria and definitions were more general and sometimes led to confusion among individuals trying to determine if they met the necessary requirements.
The updated framework clearly defines which categories of investors are allowed to participate in the Parallel Market. This clarity helps ensure transparency for investors and supports stronger regulatory oversight. It also reinforces the CMA’s commitment to creating a clear and organized financial environment.
Strengthening the Parallel Market Nomu
The Parallel Market Nomu was established to provide small and medium-sized companies with an alternative platform for listing and raising capital. Unlike the main market, Nomu offers simplified listing requirements, making it attractive for growing businesses seeking funding and visibility.
However, for the market to thrive, it requires a steady and diverse base of investors. The CMA’s decision to expand investor eligibility directly supports this goal. By increasing the number of participants, the market can experience higher liquidity, better price stability, and increased demand for listed companies.
A more active Nomu also encourages businesses to consider listing on the Parallel Market, contributing to broader economic development and innovation within the Saudi private sector.
Supporting the Vision 2030 Financial Sector Objectives
Saudi Arabia’s Vision 2030 places strong emphasis on building a dynamic financial system that drives economic diversification and supports private sector development. One of its objectives is to increase investment participation and attract both local and foreign investors.
The CMA’s reforms for the Parallel Market are directly aligned with these objectives. By making the market more accessible, the Kingdom is promoting investment culture and encouraging a new generation of individuals to take part in financial activities.
These changes also strengthen confidence in Saudi Arabia’s regulatory environment. They reflect a commitment to modernization, transparency, and inclusiveness, which are essential qualities in a competitive global financial market.
Public Engagement and Policy Transparency
Before implementing the amendments, the CMA took a collaborative approach by publishing the draft of the planned reforms for public consultation. This allowed financial experts, government bodies, market participants, and other stakeholders to share their feedback and contribute to shaping the final policies.
This transparent process demonstrates the CMA’s willingness to engage with the public and ensure that its decisions reflect the needs of the market. It also reinforces a culture of trust between the regulatory authority and the investment community.
Encouraging Sustainable Growth in the Financial Market
The improvements to investor eligibility criteria represent a significant milestone for the financial sector. These changes are expected to drive long-term, sustainable growth across the capital market. When more individuals are able to participate, the market becomes more dynamic, offering greater opportunities for all stakeholders.
A stronger Parallel Market contributes to the overall health of the financial ecosystem. It supports business expansion, encourages competition, and promotes innovation. As more investors enter the market, businesses gain better access to capital, enabling them to expand and generate new jobs and economic activity.
Conclusion
The decision by the Capital Market Authority to expand access to the Parallel Market Nomu marks an important transformation in Saudi Arabia’s financial landscape. By recognizing bachelor’s degrees, easing financial thresholds, and including experienced board members, the CMA has created a more inclusive and flexible investment environment.
These reforms are expected to strengthen liquidity, support business growth, and encourage broader participation in the capital market. They also align with the national vision of building a prosperous, diversified economy driven by opportunity, innovation, and strong financial foundations.
With these updates now in place, Saudi Arabia is moving closer to developing a financial market that is accessible, modern, and responsive to the needs of its people and businesses.
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