The Saudi economy has witnessed significant development in financial market infrastructure in recent years, as part of the comprehensive development strategy led by the Kingdom under Vision 2030. The "NOMU Market" is one of the most important achievements in this context, representing the parallel market launched by Tadawul under the supervision of the Saudi Capital Market Authority to support small and medium-sized enterprises (SMEs). The NOMU Market was established to enable this category of companies to raise capital more easily, away from the strict requirements imposed on the main stock market, providing a more flexible and innovative environment for entrepreneurs and investors seeking high growth opportunities.
The NOMU Market is part of the Kingdom's financial infrastructure development process, aiming to stimulate private sector participation in the national economy and increase the contribution of local companies to GDP. Since its launch in November 2017, the market has seen significant growth in the number of listed companies, market capitalization, and trading volume, becoming a focal point for both local and foreign investors, especially with the recent regulatory facilitation introduced to attract more companies and investors.
In this comprehensive guide, we will detail the history of the NOMU Market, listing requirements, key financial indicators, recent regulatory transformations, and practical examples such as Hail Cement Company. We will also analyze the competitive dynamics in vital sectors such as the cement sector and discuss the latest regulatory and operational developments in the NOMU Market. The goal is to provide a balanced and in-depth picture of this vital market, enabling the reader to understand its role in the Saudi economy while emphasizing the importance of informed knowledge and not making investment decisions without consulting licensed professionals.
Origins and Development: Background of NOMU Market in Saudi Financial Market
The idea of the NOMU Market stems from the increasing need in the Saudi economy to provide an alternative financing platform that supports small and medium-sized enterprises, which often struggle to meet the strict listing requirements in the main market. Tadawul launched the NOMU Market in November 2017, under the supervision of the Saudi Capital Market Authority, to serve as a parallel platform aimed at facilitating access for startups and medium-sized companies to public capital. This aligns with the Kingdom's Vision 2030, which aims to diversify income sources and encourage innovation and entrepreneurship.
Since its inception, the NOMU Market has focused on attracting small and medium-sized companies by setting less stringent listing requirements. Instead of requiring a minimum capital of 30 million riyals as in the main market, the NOMU Market only requires a capital of 10 million riyals. Ownership conditions have also been relaxed, allowing even closed joint-stock companies to list. Furthermore, the flexibility of disclosures and financial reporting, along with a lower number of required shareholders, has allowed for the acceptance of emergency subscription lists with a minimum of 100 investors.
In its early years, the NOMU Market faced challenges in persuasion and trust, as there was a cautious sentiment among investors due to market volatility and the lack of operational history for many listed companies. However, regulatory transformations, increased transparency, and growing government support for the private sector gradually enhanced confidence. The market has expanded in the number of listed companies and represented sectors, evolving into a dynamic platform attracting both local and foreign capital. Today, the NOMU Market has become one of the cornerstones of the Kingdom's financial infrastructure, providing an incubating environment for promising companies contributing to national economic growth.
Listing Conditions and Requirements in NOMU Market: Flexibility and Support for Small Companies
The NOMU Market is characterized by significant flexibility in listing conditions and requirements, making it an attractive platform for small and medium-sized companies seeking funding without the complex procedures imposed by the main market. One of the most notable listing requirements is that the company's capital must be at least 10 million Saudi riyals, with a minimum of 100 shareholders in the free subscription category. These requirements are much lower than those imposed in the main market, where a minimum capital of 30 million riyals and a larger number of shareholders are required.
In terms of the quality of eligible companies, the NOMU Market allows for the listing of both public and closed joint-stock companies, even newly established companies, provided they demonstrate financial solvency or present a coherent business plan that convinces the Capital Market Authority. Disclosure requirements have also been simplified, with companies required to submit quarterly and annual financial reports only, with more flexibility in the nature of disclosures compared to the main market, which requires more detailed reports and a higher level of auditing.
Additionally, there is no requirement for a listed company in the NOMU Market to have a long profit record or extended financial history, allowing opportunities for startups with innovative ideas or new technological, agricultural, and industrial projects to present themselves to investors. This flexibility enables companies to restructure their ownership and expand their shareholder base easily, contributing to increased liquidity and supporting expansion plans. These policies aim to stimulate economic growth by supporting emerging local companies and integrating them into the Kingdom's formal financial system.
Indicators and Figures: Rapid Expansion in NOMU Market (2023–2025)
The NOMU Market has witnessed steady growth in recent years regarding the number of listed companies, market capitalization, and trading volumes. By the end of 2023, the number of listed companies approached 130, rising to about 150 companies by mid-2024, and stabilizing around 160 companies by the end of the same year. This expansion included diverse sectors such as construction, tourism, technology, and agriculture, reflecting the market's diversity and its ability to accommodate various economic categories.
As for total market capitalization, it exceeded 50 billion Saudi riyals by the end of 2024, compared to about 40 billion at the end of 2023. In the first quarter of 2025, market capitalization rose to nearly 55 billion riyals, driven by new listings and notable market increases in some stocks. This growth in market capitalization coincides with an increase in liquidity and trading activity, with the average daily trading volume reaching around 200 million riyals during the second half of 2024, a record level compared to previous years.
The general index of the NOMU Market (Parallel Market Index) rose by 15% in 2024 with notable fluctuations linked to quarterly company results, continuing to rise by another 5% in the first quarter of 2025. This is attributed to improved results from some small companies and increasing optimism about government support for economic diversification projects. However, it is noted that the market is known for its high volatility due to the limited number of companies and the high attractiveness of growth, making price movements sharper compared to the main market. These indicators confirm the vitality of the market and its increasing importance as an investment platform for startups and investors seeking exceptional growth opportunities.
Differences Between NOMU Market and Main Market: Regulatory and Operational Comparisons
The NOMU Market is considered a complement to the main market (Tadawul) rather than a substitute, serving a different category of companies and investors. From a regulatory perspective, the listing conditions differ significantly between the two markets. While the main market requires a minimum capital of 30 million riyals and a larger number of shareholders, the NOMU Market requires only 10 million riyals in capital and just 100 shareholders. Additionally, financial disclosure requirements in the main market are stricter, including audited quarterly and annual financial reports, with precise disclosure obligations regarding governance and financial performance, while the NOMU Market relies on less detailed reports with greater flexibility to accommodate the nature of small companies.
The differences also include the nature of the listed companies; the main market attracts large companies with long operational and financial histories, while the NOMU Market welcomes startups and medium-sized companies, including some newly established firms. In terms of liquidity and trading volume, the main market is much larger and more stable, while the NOMU Market is known for its higher volatility due to the limited number of shares and relative trading volume.
Regarding investors, there are no significant restrictions in either market, as any qualified investor can trade, but the NOMU Market may impose additional conditions at times, such as a minimum portfolio size for investors. The Capital Market Authority supervises both markets with the same level of oversight, granting the NOMU Market greater flexibility in some technical aspects. These differences make the NOMU Market a suitable environment for companies seeking rapid growth and investors looking for higher risk and return opportunities, while the main market remains a refuge for established companies and more conservative investors.
The Role of NOMU Market in Supporting the Saudi Economy and Achieving Vision 2030
The NOMU Market is considered one of the effective tools for achieving the goals of the Kingdom's Vision 2030, especially regarding the development of the private sector, enhancing entrepreneurship, and diversifying national income sources. By providing a flexible platform for small and medium-sized companies, the market helps facilitate capital raising, enhancing these companies' ability to expand and create new job opportunities. The Saudi government recognizes the importance of this market in driving innovation, as it allows startups to test their ideas and turn them into viable projects without facing significant financing obstacles.
The NOMU Market helps engage the private sector more actively in the national economy by encouraging local companies to enter the financial market and gain the necessary institutional experience for growth. This platform also provides local and foreign investors with opportunities to invest in companies with high growth potential, positively reflecting on liquidity and investment levels in the Kingdom. The market's regulatory infrastructure supports transparency and disclosure processes, ensuring a healthy competitive environment and reducing institutional failure risks.
Additionally, the NOMU Market enhances the culture of saving and investment among individuals and encourages the establishment of new companies in vital sectors such as technology, agriculture, renewable energy, and logistics services. With ongoing regulatory facilitation and government support, the market is expected to play a pivotal role in achieving the economic diversification and sustainable growth goals outlined in Vision 2030. These prospects make the NOMU Market a strategic tool for supporting the comprehensive economic transformation of the Kingdom.
Liquidity Levels and Trading Activity in NOMU Market: Financial Activity Analysis
The NOMU Market has seen a notable increase in liquidity levels and trading activity during 2024 and 2025, enhancing the market's attractiveness to both individual and institutional investors. The average daily trading volume reached around 200 million Saudi riyals during the second half of 2024, marking a significant jump compared to previous years when daily trading ranged between 100 to 130 million riyals. These figures reflect rising investor confidence in small and medium-sized companies, especially with new listings contributing to diversification and increasing market appeal.
The number of free float companies in the NOMU Market has increased, currently representing at least 30% of the capital of listed companies. This change has contributed to increased liquidity, as it has become easier for investors to enter and exit the market without significantly impacting prices. Additionally, the regulatory facilitation announced by the Capital Market Authority in mid-2024, such as simplifying listing procedures and raising minimum thresholds for certain categories, has increased trading volume and attracted more investors.
On the other hand, liquidity levels in the NOMU Market are influenced by several factors, including quarterly company results, economic forecasts, and the level of government support for development projects. For example, the market experienced sharp fluctuations in some stocks following the release of earnings reports or the announcement of new projects, leading to rapid price increases or decreases. Despite these fluctuations, the overall trend indicates sustainable growth in liquidity levels and trading activity, reinforcing the NOMU Market's position as an effective platform for supporting startups and medium-sized companies in the Kingdom.
Foreign Investment in NOMU Market: Opportunities and Challenges
The NOMU Market witnessed a significant increase in foreign investment volume in 2024, after the Saudi Capital Market Authority facilitated the entry of qualified foreign investors into the market without additional requirements compared to the main market. According to financial reports, foreign investments in the NOMU Market rose by nearly 20% in 2024 compared to the previous year, reflecting increasing confidence among international investors in small and medium-sized Saudi companies.
This increase in foreign investment is attributed to several reasons, most notably the sectoral diversity that characterizes the NOMU Market, where companies from technology, agriculture, construction, and services sectors are present, in addition to the market's attractiveness in terms of high growth potential. Recent regulatory facilitation, such as the ability to trade through exchange-traded funds (ETFs) and linking the market to global investment systems, has also contributed to raising liquidity levels and expanding the base of foreign investors.
However, foreign investment in the NOMU Market is not without challenges, as the market is known for its high volatility and the limited availability of some financial data for small companies. Additionally, the high risks associated with startups may limit the volume of long-term investments. Nevertheless, the evolving legislative environment and government support for expansion and innovation plans make the NOMU Market a desirable destination for investors seeking to diversify their investment portfolios. Overall, the influx of foreign investments into the NOMU Market is a positive indicator of the market's maturity and its ability to attract global capital.
Analysis of the Cement Sector in NOMU Market: The Case of Hail Cement and Its Competitors
The cement sector is one of the vital sectors in the Saudi economy, closely linked to construction activity, urban development, and major government projects. In the NOMU Market, Hail Cement Company (Symbol: 3001) stands out as an example of small companies benefiting from the parallel market environment. Hail Cement was established to meet local market needs in the Hail region and surrounding areas, enjoying a competitive position despite its smaller size compared to industry giants listed in the main market.
The price of Hail Cement shares was around 15.50 riyals at the end of April 2025 after notable fluctuations throughout the year, rising from 12 riyals at the beginning of 2024 to a peak of 18 riyals at the end of the same year, before stabilizing around its current level. The company's market capitalization is estimated at approximately 465 million riyals, based on nearly 30 million shares. In terms of financial performance, the company achieved a net profit of 50 million riyals for 2024, resulting in a price-to-earnings ratio of about 12 times, which is an average rate within the small companies sector in the NOMU Market.
Regarding distributions, the company announced a cash yield of 5% per share for 2024 (0.5 riyals per share), thanks to a 10% annual profit growth. This trend in profit distribution is a positive indicator of improved financial conditions, especially after years without profit distributions. Hail Cement faces competition from larger companies such as Saudi Cement, Yamama Cement, and Qassim Cement, alongside medium and small companies like Tabuk Cement and Northern Cement Company. Competition primarily depends on geographical proximity, pricing, and operational efficiency, requiring Hail Cement to continue improving its operations to meet market challenges and maintain its local share.
Market Volatility in NOMU Market: Causes and Effects
The NOMU Market is known for its high volatility levels compared to the main market, attributed to several regulatory and operational factors. First, the limited number of listed companies and relative trading volume make stock prices more susceptible to rapid changes upon the release of news or financial results. For instance, the market experienced sharp fluctuations in 2024 following the release of economic data or the announcement of new company listings, with the general market index rising by about 15% during the year, then continuing to rise by 5% in the first quarter of 2025.
Second, changes in global monetary policies, such as rising interest rates, directly affect market liquidity, as some investors tend to reduce exposure to high-risk assets like shares of small companies. In mid-2024, the NOMU Market index declined due to concerns over rising global interest rates, before recovering with the stabilization of local economic data.
Third, stock prices in the NOMU Market heavily depend on quarterly business results and future project forecasts, making stocks responsive to any positive or negative developments. Additionally, the entry or exit of new investors from the market can have significant effects on prices due to the limited number of free shares. Despite these fluctuations, the market remains attractive to investors seeking high growth opportunities, with the necessity to understand the associated risks. It is always emphasized that making investment decisions in the NOMU Market requires in-depth study and consultation with specialists, given the dynamic nature of the market and its volatility.
Regulatory Updates and Their Impact on NOMU Market (2024–2025)
The NOMU Market has witnessed a series of regulatory updates during 2024 and 2025 aimed at enhancing the market's attractiveness and increasing its efficiency and transparency. Among the most notable developments was the announcement by the Saudi Capital Market Authority of regulatory facilitations in mid-2024, including raising the minimum number of shareholders for certain categories, simplifying listing procedures, and allowing the introduction of new investment products such as sukuk and small-cap equity funds. These measures aim to attract more startups and medium-sized companies to join the market while ensuring the protection of investor interests.
Initiatives to improve liquidity have also been launched, including encouraging the trading of free float shares, linking the market to global trading systems, and expanding the scope of financial disclosures without imposing additional burdens on small companies. This has contributed to raising the average daily trading volume and increasing the number of investors, especially after allowing qualified foreign investors to enter the market without additional restrictions.
Regarding products, discussions are underway about listing index funds linked to NOMU Market companies, opening the door to new investment tools that increase the market's depth and diversity. The authority continues to monitor companies' compliance with periodic disclosures and governance standards, imposing penalties on violators to ensure a healthy investment environment. These regulatory updates reflect the responsible authorities' commitment to developing the NOMU Market and transforming it into a more competitive platform that supports economic development goals and meets the aspirations of local and international investors.
Successful Company Models in NOMU Market: Hail Cement as an Example
Hail Cement Company is one of the prominent examples of small companies that have benefited from the NOMU Market platform to achieve significant financial and operational growth. The company was established to meet local demand for cement in the Hail region and has succeeded in enhancing its position thanks to its ability to adapt to market changes and improve its operational efficiency. In 2024, the company recorded a 10% increase in net profits compared to the previous year, reaching 50 million riyals, which enabled it to announce a cash dividend of 5% per share, a step not seen in previous years.
The price of Hail Cement shares experienced clear fluctuations throughout the year, rising from 12 riyals at the beginning of 2024 to a peak of 18 riyals at the end of the year, before stabilizing around 15.50 riyals at the end of April 2025. This performance is attributed to several factors, including signing new strategic partnerships, improved production results, and benefiting from major government projects in the region. Regulatory updates in the NOMU Market have also contributed to increasing the stock's liquidity and attracting new investors.
In terms of competitiveness, the company faces challenges from larger and more diversified companies, such as Saudi Cement and Qassim Cement, but it has managed to maintain its market share by focusing on the local market and providing reliable services. Its success in the NOMU Market has encouraged other companies to view the parallel market as an opportunity for growth and financing, enhancing the market's position as a supportive platform for small and medium-sized companies in the Kingdom.
Sectoral Diversity in NOMU Market: Growth Opportunities and Challenges
The NOMU Market is characterized by significant sectoral diversity, bringing together companies from various sectors such as technology, agriculture, construction, services, and tourism. This diversity enhances the market's ability to attract new capital and accommodate different types of companies, whether startups or those in expansion phases. For example, 2024 saw the listing of new technology and agricultural companies, such as Al-Madina Agricultural Company, adding a new dimension to the market and raising the level of competition.
This sectoral diversity allows investors to build balanced investment portfolios that combine sectors with varying risks and returns. Investing in construction and cement companies allows benefiting from government infrastructure projects, while technology companies offer high growth potential with higher risks. The presence of agricultural and industrial companies also contributes to supporting food security and local manufacturing, aligning with the Kingdom's sustainable development goals.
However, this diversity also imposes challenges at the regulatory and monitoring levels, as the nature of risks and opportunities varies across sectors. This requires the Capital Market Authority and regulatory bodies to develop flexible monitoring policies that consider the specificities of each sector while ensuring transparency and protecting investor rights. Ultimately, the sectoral diversity in the NOMU Market is a key element in enhancing the market's attractiveness, but it requires greater awareness from investors regarding the nature of each sector and the associated risks.
Future Growth Prospects for NOMU Market: Challenges and Opportunities
The NOMU Market is expected to continue its upward trajectory in the coming years, supported by ongoing government support, continuous regulatory facilitation, and increasing investor awareness of the importance of investing in small and medium-sized enterprises. Financial indicators suggest a strong operational momentum, with an increase in new listings and diversity in represented sectors. The influx of foreign investments and the development of new investment products such as index funds enhance the market's ability to attract additional capital.
Regarding challenges, high volatility in stock prices remains one of the main obstacles to market growth. The limited history of listed companies and their relatively small size make them more susceptible to economic shocks and sudden changes in financial policies or local demand. Additionally, sectoral diversity requires regulatory authorities to develop specialized monitoring tools for each sector to ensure transparency and protect investors.
On the opportunity side, major government development projects, such as the urban expansion plan in Hail and Tabuk, represent a significant stimulus for construction companies and related industries. Moreover, the increasing interest in technology and innovation opens new horizons for emerging tech companies. Overall, the success of the NOMU Market in achieving its objectives depends on continued collaboration between regulatory authorities, companies, and investors, with the necessity to develop the financial and legislative tools needed to support sustainable growth. The market remains a promising platform for companies seeking expansion and investors wishing to diversify their portfolios within a dynamic investment environment that requires careful study and consultation with specialists.
Conclusion
The NOMU Market represents one of the essential pillars in the development of Saudi financial markets, providing a flexible and advanced platform to support small and medium-sized enterprises and enable them to achieve sustainable growth. By facilitating listing conditions, expanding the investor base, and enhancing regulatory transparency, the market has attracted the attention of a wide range of local and foreign investors, and has also helped achieve the goals of the Kingdom's Vision 2030 related to economic diversification and enhancing private sector participation.
Despite the challenges associated with market volatility and the limited history of listed companies, the opportunities available in the NOMU Market remain significant, especially with ongoing government support and the expansion of investment products. The market represents a dynamic environment suitable for startups and investors seeking high growth opportunities, with the necessity to understand the associated risks and carefully study each opportunity.
In conclusion, it is emphasized that investment decisions should not be made without consulting a licensed financial advisor and relying on reliable information sources and official reports to ensure informed and secure financial decisions in the changing market environment.
Frequently Asked Questions
The NOMU Market is the parallel market in the Saudi financial market, launched to provide a platform for small and medium-sized enterprises to raise capital with less stringent listing requirements than the main market (Tadawul). The NOMU Market requires a minimum capital of 10 million riyals and fewer shareholders (at least 100 investors), while the main market requires larger capital and a higher number of shareholders, along with greater disclosure and transparency requirements. The NOMU Market allows startups the opportunity to list and grow, while the main market is typically reserved for larger companies with extended operational and financial histories.
Any registered investor in the Saudi financial market can invest in the NOMU Market, whether an individual or an institution, provided they meet the requirements of the financial broker. There are no significant additional restrictions on investing in this market compared to the main market, although some companies may impose a minimum size requirement for the investment portfolio. The NOMU Market is attractive to investors seeking high growth opportunities and willing to bear higher levels of risk due to market volatility and the nature of the companies listed.
The listing requirements in the NOMU Market include a minimum capital of 10 million Saudi riyals, with at least 100 shareholders in the free subscription category. The company must be established (public or closed joint-stock) and possess adequate financial solvency or a clear business plan. It is also required to submit periodic financial reports to the authority and the public, with more flexibility in the nature of disclosures compared to the main market. These conditions aim to facilitate the entry of startups and medium-sized companies into the market and support their growth.
The NOMU Market provides small and medium-sized companies with a platform to raise capital and grow their businesses without facing the stringent listing requirements of the main market. It also offers them the opportunity to restructure ownership and increase their shareholder base. For investors, the NOMU Market presents opportunities to invest in companies with high growth potential, with the possibility of achieving higher returns, but it requires readiness to bear greater risks due to market volatility and the nature of the companies listed.
Hail Cement's stock experienced clear fluctuations during 2024, starting the year at around 12 riyals, then rising to a peak of 18 riyals at the end of the year, before stabilizing at 15.50 riyals by the end of April 2025. This movement reflects the stock's response to the company's quarterly results, market developments, and government projects in the region. This performance is typical for small company stocks in the NOMU Market, which are characterized by high volatility and a close connection to local demand levels.
The price-to-earnings ratio of Hail Cement's stock is about 12 times based on 2024 earnings, which is an average rate within the small companies sector. Large cement companies in the main market typically trade at lower P/E ratios (8–10 times), while some startups in the NOMU Market may exceed 15–20 times due to high growth expectations. This reflects Hail Cement's position as a relatively stable competitor among small and medium-sized companies in the sector.
Hail Cement announced a cash dividend of 5% of the nominal value of the share (0.5 riyals per share) for 2024, after years without distributions. The continuation of distributions depends on the company's financial performance and profit stability in the upcoming periods. Typically, the distribution policy in small companies relies on cash reserves and available liquidity, and it may change based on business results and market conditions.
Hail Cement competes with major companies such as Saudi Cement, Yamama Cement, and Qassim Cement, in addition to medium and small companies like Tabuk Cement and Northern Cement Company. Competition relies on proximity to construction sites, pricing, and distribution and production efficiency. Main market companies remain the strongest competitors due to their size and logistical capabilities, while Hail Cement focuses on meeting local demand in the Hail region.
Among the most notable updates is the announcement by the Capital Market Authority of new facilitations, such as raising the minimum number of shareholders for certain categories, simplifying listing procedures, and allowing the introduction of new index funds and sukuk. There has also been encouragement for trading free float shares and increasing financial disclosures without adding burdens on small companies. These updates aim to enhance the market's attractiveness, increase the number of listed companies, and improve liquidity while protecting investors.
News and reports about the NOMU Market can be followed through the official website of Tadawul and the Saudi Capital Market Authority, where updated price data and financial reports for listed companies are available. Economic media outlets such as "Argaam," "Al-Riyadh," and "Al-Eqtisadiyah" periodically cover market news. It is advisable to rely on official sources and approved reports to obtain accurate and reliable information about market developments and listed companies.