Nomu Market: Everything You Need to Know About Saudi Arabia’s Parallel Market

Nomu Market is the parallel market launched by the Saudi Capital Market Authority to enable SMEs to list and trade their shares within a regulated supervisory environment. Nomu aims to facilitate startups’ access to capital by imposing less stringent listing requirements compared to the main market. While the main market requires significant capital, years of operation, and prior profitability, Nomu allows companies with lower capital and a smaller free float to list, making it attractive for entrepreneurs and growth-oriented firms. It operates under the supervision of the Capital Market Authority and is subject to governance practices tailored to its target companies. Nomu is a practical solution for businesses not meeting the main market’s criteria and is tracked by its own index, the NomuC Composite Index, which measures the performance of its listed companies.

During 2024 and 2025, Nomu Market experienced notable expansion in the number of listed companies and trading value, with dozens of new entrants from sectors such as technology, renewable energy, logistics, and food industries. The NomuC Composite Index recently reached 24,450.51 points, up 0.16% from the previous session, reflecting vibrant trading and growing liquidity. By comparison, the main market’s TASI index stood at 11,302.35 points. Despite differences in size and market capitalization, Nomu continues to see gradual increases in both company size and investor participation. Some companies have also seen their market values and P/E ratios reach levels competitive with those on the main market, with regular dividend distributions in certain cases. These indicators highlight Nomu’s status as a dynamic and evolving investment environment.

Listing on Nomu is subject to a set of requirements set by the Capital Market Authority to balance support for startups with investor protection. Key requirements include a minimum nominal capital—typically SAR 10–20 million—a free float of at least 20% of capital, and at least two approved founders. Companies are not required to have a history of profitability, but must have clear assets or financial guarantees. Listed companies must adhere to basic governance standards and provide quarterly financial disclosures and regular reports. These requirements are less stringent than those of the main market, making Nomu an attractive platform for companies seeking funding but unable to meet the main market’s strict criteria.

The fundamental differences between Nomu and the main market lie in listing requirements, governance, and share liquidity. The main market typically requires minimum capital of SAR 30 million, proven years of operation and profitability, a higher free float (30% or more), and a larger number of founders. It also mandates compliance with international disclosure and transparency standards. In contrast, Nomu offers greater flexibility, with lower capital and free float requirements, and no need for prior profitability. However, risks are higher in Nomu due to smaller company sizes and relatively lower liquidity, requiring investors to conduct thorough due diligence before investing.

Nomu Market includes a wide range of SMEs operating across diverse sectors. Key sectors include technology, green and renewable energy, light manufacturing, logistics, consumer products, and healthcare. For example, there are startups in e-commerce, innovators in solar technology, and FinTech companies. This sectoral diversity reflects the market’s focus on supporting innovation and entrepreneurship in line with Vision 2030. Some companies begin on Nomu and later transition to the main market after meeting growth and governance requirements.

For illustration, consider hypothetical data for 'Nama Tech', a company listed on Nomu. In March 2024, its share price was around SAR 25, with a market capitalization of SAR 250 million, a P/E ratio of 12.5, and an annual dividend yield of 10%. These metrics are comparable to those in the main market but typically exhibit higher price volatility and risk due to the smaller company size. This example helps investors understand how to analyze Nomu companies’ financial data and assess investment feasibility, while highlighting the importance of monitoring regular disclosures and company reports via official platforms such as Tadawul.

Shares of companies listed on Nomu are traded through licensed brokerage firms using the same mechanisms as the main market. Both individual and institutional investors, local and foreign, can buy and sell shares during regular trading sessions. The main opportunity lies in the potential for high returns from investing in fast-growing, promising companies. However, risks include high price volatility, lower liquidity, and more limited financial transparency compared to the main market. Some companies may also face sustainability challenges or exit the market if targets are not met. Investors are advised to conduct careful due diligence, diversify their portfolios, and monitor regular disclosures.

Nomu Market serves as a vital platform for supporting SMEs in Saudi Arabia. By facilitating public listings and capital raising, Nomu enables these companies to expand operations, develop technology, and increase employment. It also provides them with market visibility and transparency, boosting investor confidence and supporting long-term sustainability. The existence of a parallel market like Nomu is part of Vision 2030 initiatives to diversify the Saudi economy, strengthen the private sector, and foster local entrepreneurship. Nomu acts as a bridge between SMEs and investors seeking new growth opportunities in promising sectors.

Nomu Market does not compete with specific companies as much as it does with alternative financing channels such as venture capital (VC) funds, SME funds, and sector-focused ETFs. Nomu also competes with parallel markets in other countries, such as AIM in London and TSX Venture in Canada, which similarly allow small companies to raise capital. In some cases, these financing channels complement Nomu, as a VC fund may invest in a startup which later lists on Nomu. Companies and investors should understand the dynamics and opportunities of each financing channel to maximize their benefits.

In 2024 and 2025, Nomu Market saw significant regulatory developments, including the introduction of financial and tax incentives for newly listed companies, especially in technology and renewable energy sectors. Measures were also taken to facilitate foreign investor access by reducing fees and encouraging international brokerages. On the technology front, digitization and instant settlement (T+0/T+2) continued across the Saudi capital market, with technical advisory services provided to listed companies to enhance governance and transparency. New trading products linked to Nomu, such as ETFs and futures contracts, have also emerged, expanding investor options and boosting market liquidity.

Although governance and disclosure requirements in Nomu are less stringent than in the main market, listed companies must submit quarterly financial reports and regular operational disclosures. The Capital Market Authority monitors compliance and imposes penalties for violations. These measures aim to protect investors and build trust in the market, while maintaining enough flexibility to attract SMEs. As the market evolves, governance requirements may gradually increase to improve disclosure quality and raise transparency standards in line with international best practices.

Nomu Market has attracted growing interest from foreign investors and financial institutions during 2024 and 2025. Entry procedures for foreign investors have been simplified, allowing 100% ownership of Saudi equities. Local and global investment funds have also been encouraged to participate in the parallel market, increasing liquidity and trading volumes. This trend reflects Saudi Arabia’s commitment to attracting foreign capital, diversifying its investor base, and enhancing the regional and global standing of its capital market. Nevertheless, foreign investors should understand Nomu’s unique characteristics and risks before entering.

Nomu provides SMEs with the opportunity to grow and expand until they meet the requirements for listing on the main market. After a period of stable financial performance and adherence to governance standards, companies listed on Nomu can apply to transition to the main market. This move offers greater liquidity, a broader investor base, and enhanced market reputation. For many companies, Nomu is a launchpad for full main market listing, motivating them to continuously improve their financial and operational performance.

Nomu Market plays a strategic role in supporting the objectives of Saudi Vision 2030 by strengthening the private sector and developing SMEs. With ongoing government initiatives and regulatory advancements, the number of listed companies and the base of local and international investors are expected to grow. Nomu contributes to diversifying the Saudi economy, fostering innovation, and increasing employment, making it a cornerstone of the future Saudi capital markets ecosystem. As the market matures, the importance of disclosure, governance, and product expansion will increase, further enhancing its appeal to both investors and companies.