The Capital Market Authority's (CMA's) Board approved the opening the Parallel Market to holders of a bachelor's degree in a number of specialties related to the field of securities, allowing them to qualify as eligible investors in the Parallel Market (Nomu). This comes as part of a package of amendments and facilitations approved for several new criteria, and the easing of the requirements that investors must meet to qualify for inclusion within the category of eligible investors who are permitted to trade and invest in the Parallel Market.
The decision aims to expand the investor base in the Parallel Market “Nomu," which will enhance liquidity and positively reflect on the market.
According to the decision, which became effective immediately, graduates holding a bachelor's degree in Finance or Investment or Accounting are now eligible to invest in the Parallel Market (Nomu). This enables new categories of investors to join those already classified as qualified investors, including holders of master's degrees in finance, accounting, or any field related to securities, in addition to those holding professional certifications such as the SOCPA fellowship or other previously approved professional qualifications.
The approved amendments included easing the criteria imposed on individual investors who wish to enter and invest in the Parallel Market – Nomu –. Under the approved framework, an investor must have executed trades with a total value of SAR 20 million in the capital market in general during the past twelve months, whereas the previous requirement mandated completing at least ten quarterly trades during the past twelve months with a value of SAR 40 million. This means eliminating the quarterly trade requirement and applying it over the entire last year, while reducing the minimum threshold to SAR 20 million. In addition, the term “qualified investor in the Parallel Market" is now dedicated specifically to the categories permitted to invest in the market.
The decision also approved allowing anyone who currently serves, or has previously served, as a member of the board of directors or a member of specialized committees emanating from the board of directors of companies listed on the Parallel Market to invest in this market.
On 25/03/2025, the CMA published “The Draft to Develop the Categories of Investors in the Parallel Market" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center and the CMA's website.
Regulations within this Decision can be viewed via the following link:
Investment Funds Regulations
Real Estate Investment Funds Regulations
The Rules on the Offer of Securities and Continuing Obligations
Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority