Introduction:
The Saudi financial market offers a wide range of investment opportunities designed to attract both institutional and individual investors. Within this framework, the Main Market and the Parallel Market (Nomu) play distinct yet complementary roles in supporting business growth and diversifying the national economy.
Although both markets aim to facilitate capital formation and investment, they differ significantly in terms of listing requirements, risk levels, liquidity, and target companies.
So, what exactly distinguishes the two markets — and which one aligns best with your investment strategy?
- The Main Market – Stability and Strong Financial Foundations
The Main Market represents the cornerstone of Tadawul, accommodating large, established companies with solid financial performance and extensive operational experience.
This market is characterized by strict listing and disclosure requirements imposed by the Capital Market Authority (CMA) to ensure transparency, investor protection, and long-term stability.
Key listing requirements include:
A minimum market capitalization of SAR 100 million.
At least 30% of the total shares must be offered to the public.
A minimum of 200 shareholders is required.
Companies must disclose quarterly financial reports within 30 days and annual reports within 90 days of the fiscal year-end.
These requirements make the Main Market particularly suitable for conservative investors seeking secure and steady investments in financially sound companies.
- The Parallel Market (Nomu) – A Gateway for Growing Businesses
In contrast, the Parallel Market (Nomu) is designed to support small and medium-sized enterprises (SMEs) and emerging companies with strong growth potential but shorter operational track records.
Nomu provides a more flexible regulatory framework, allowing these companies to raise capital and enhance their visibility among investors.
Key characteristics include:
A minimum market capitalization of SAR 10 million.
Companies may list by offering 20% of their shares or ensuring a market value of at least SAR 30 million for tradable shares.
A minimum of 35 to 50 shareholders, depending on market capitalization.
More relaxed disclosure obligations, allowing 45 days for quarterly reports and 90 days for annual reports.
A daily price fluctuation limit of 20%, compared to 10% in the Main Market.
Such flexibility enables innovative and fast-growing companies to enter the market earlier, while maintaining the option to migrate to the Main Market once they meet the higher listing criteria.
- Balancing Liquidity and Risk
The Main and Parallel Markets differ in both liquidity and risk levels:
The Main Market offers high liquidity and lower risk, driven by the size and maturity of listed companies.
The Parallel Market presents higher potential returns but also greater volatility, given the nature of younger, smaller firms.
This contrast makes the Main Market ideal for long-term, low-risk investors, while the Parallel Market appeals to dynamic investors willing to embrace higher risks for higher returns.
- Transitioning from the Parallel Market to the Main Market
The Capital Market Authority allows companies listed on Nomu to transition to the Main Market upon fulfilling specific conditions, including:
At least two years of listing on the Parallel Market.
An average market capitalization of SAR 200 million over the last six months.
A Board of Directors’ report explaining the rationale for the transition.
An official board resolution and disclosure to the public before trading resumes.
After CMA approval, trading on Nomu is temporarily suspended for up to five trading days, after which the company officially begins trading on the Main Market.
- Which Market is Better for Investors?
The choice between the Main Market and the Parallel Market depends on the type of investor, risk appetite, and investment objectives:
Type of Investor Recommended Market Key Advantages
Conservative Investor Main Market High stability, transparency, and liquidity
Risk-Taking Investor Parallel Market (Nomu) High-growth potential, flexible listing, and wider price fluctuation
The Main Market attracts those prioritizing stability and consistent returns — including pension funds, institutional investors, and individuals seeking secure investments.
The Parallel Market, on the other hand, suits investors seeking rapid growth opportunities and higher-risk, high-reward ventures, especially in innovative sectors like technology and healthcare.
Conclusion
The difference between the Main Market and the Parallel Market in Saudi Arabia reflects a broader economic vision — one that balances regulatory rigor with market flexibility to foster sustainable growth and enhance capital accessibility.
Together, both markets contribute to a dynamic financial ecosystem aligned with Saudi Vision 2030, encouraging entrepreneurship, supporting business expansion, and attracting local and international investments.