Saudi CMA Expands Eligibility Rules for Investors in Nomu Parallel Market

Saudi Arabia’s Capital Market Authority (CMA) has approved a series of regulatory changes that open the Nomu Parallel Market to a wider pool of individual investors, including recent university graduates in several finance-related disciplines. The decision, which took effect immediately, is aimed at broadening participation and increasing liquidity in the alternative equities market.

The CMA announced that holders of a bachelor’s degree in finance, investment, or accounting will now qualify as eligible investors in Nomu. The update introduces a new academic category to the list of individuals permitted to trade on the market, which was previously limited to investors with higher academic credentials or professional certifications.

Before this change, eligibility was largely restricted to holders of master’s degrees in finance, accounting, or securities-related fields, as well as those with professional accreditations such as the SOCPA fellowship or other approved qualifications. The new rules pave the way for entry-level professionals to participate alongside seasoned investors.

The amendments also adjust financial activity requirements for individuals seeking access to the market. Investors must now show a total of at least SR20 million (USD 5.33 million) in executed trades across the broader capital market within the past 12 months. Previously, the criteria demanded a minimum of 10 quarterly trades valued at SR40 million over the same period. By removing the quarterly requirement and halving the minimum trade threshold, the CMA aims to lower barriers while maintaining a level of experience-based qualification.

In another change, the term “qualified investor in the Parallel Market” has been formally defined and tied to the categories approved under the updated framework. The decision also grants eligibility to individuals who currently serve, or have previously served, on the boards of directors or specialized board committees of companies listed on Nomu. This allows experienced corporate figures to participate in investment activity linked to markets where they have direct oversight or prior governance experience.

The adjustments follow a public consultation period earlier this year. In March, the CMA released a draft titled “The Draft to Develop the Categories of Investors in the Parallel Market” through the Unified Electronic Platform for Consulting the Public and Government Entities, operated by the National Competitiveness Center. Feedback collected from the platform and the CMA’s website helped shape the final set of amendments.

Nomu, introduced as an alternative trading venue to support the growth of small and medium-sized enterprises, has become a key channel for companies seeking flexible listing requirements. The latest measures reflect the CMA’s plan to stimulate broader engagement and strengthen the market’s development.