Riyadh – The Saudi Stock Exchange (Tadawul) launched on Sunday the “Nomu-Parallel Market”, listing nine Saudi companies out 77 applied to be listed on the index designed to buttress and further increase growth and business development of the financial market.

The event is in partnership with The Capital Market Authority, The Ministry of Commerce and Investment, and The Small & Medium Enterprise Authority, and will be sponsored and attended by His Excellency the Minister of Commerce and Investment, Majid al-Qasabi.

Nomu is an alternative equity market with lighter listing requirements compared to the main market. It will serve as an alternative platform for companies to go public, and the investment in this market will be restricted to qualified investors.

The main objective of setting up Nomu was as an additional source of funding for issuers to access capital, and increased diversification and deepening of the capital market. Another characteristic feature of Nomu is the possibility of transition to the main market after new filing process with the Capital Market Authority (CMA).

Khalid Abdullah al-Hussan, the Chief Executive of Tadawaul, pointed out to the Stock Market’s distinction and competence to set up the launch of “Nomu-Parallel Market” based on highly developed infrastructure, adopting, at the same time, state of-the-art systems that will allow assembling a robust market with great expertise to aptly accommodate stages of the market expansion in the future.

Hussan asserted that Nomu which was launched in a record time, is considered as a bedrock base to construct a developed and well-advanced Saudi stock market open to the world, in alignment with the objectives of the 2030 Vision.

During a press conference on Saturday, Hussan added that the Saudi market has high levels of governance compared to other regional markets.

“We are working with our partners to attract more companies to the parallel market,” Hussan indicated.

Asked about the target for the parallel market, the CEO of the Saudi bourse said the average in around 10 similar markets is 38 companies for the second year, noting that this is not necessarily Nomu’s target.