Riyadh – Mubasher: Al Rajhi Capital said that launching Nomu supports the Vision 2030 objectives which raise the contribution of small- and medium-sized enterprises (SME) from 20% to 35% of the GDP.

On 26 February, the Saudi Stock Exchange (Tadawul) launched Nomu-Parallel Market with trading activity beginning on the stocks of seven companies, with a fluctuation limit of 20%.

On the sidelines of the launching ceremony, the vice chairman of the Saudi Capital Market Authority (CMA), Mohammed El-Kuwaiz, told Mubasher that Nomu targets attracting 30 to 35 companies before the end of the year.

"Less stringent listing requirements make Nomu an attractive platform for small- and medium-sized enterprises as it offers a new avenue for smaller companies to raise capital in a more cost-effective way compared to the main market," the report stated.

Al Rajhi Capital added that investment in the parallel market is restricted to "Qualified Investors," given higher risks associated with investments in smaller companies with lower disclosures.