Amid the profound economic transformations led by the Kingdom of Saudi Arabia under Vision 2030, the capital market has evolved beyond a mere trading platform. It has become a fully regulated environment aimed at achieving the highest levels of transparency, attracting investment, and enhancing corporate governance.
The main market “Tadawul” and the parallel market “Nomu” serve as two strategic legal paths, offering investors and companies distinct opportunities based on precise regulatory standards. Tadawul targets large-cap companies with strong financial performance, while Nomu opens broader horizons for small and medium-sized enterprises (SMEs) through more flexible listing requirements, without compromising regulatory discipline.
While both markets require high levels of disclosure and compliance, each has its own regulatory framework governing listing procedures, trading mechanisms, governance structures, and issuer responsibilities.
First: Saudi Tadawul – The Main Market for Institutional Investment
Saudi Tadawul (TASI) is the Kingdom’s primary stock exchange. It is a regulated legal platform targeting large corporations with high financial solvency. The market is overseen by the Capital Market Authority (CMA) under the Capital Market Law (Royal Decree No. M/30) and aims to boost transparency, attract both local and foreign investments, and strengthen regulatory integrity.
TASI Index:
The TASI Index reflects the performance of over 212 listed companies and is used as a benchmark for market movements. As of Q1 2025, Tadawul’s market capitalization reached SAR 10.8 trillion, up 10% from SAR 9.8 trillion in 2023, making it the largest exchange in the Middle East.
Key Regulations:
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Licensing of brokers by the Capital Market Authority.
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Regular and immediate disclosure of material financial events.
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Prohibition of insider trading and price manipulation.
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Daily price fluctuation limits of ±10% and a maximum trading fee of 0.155%.
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Trading hours: Sunday to Thursday, 10:00 AM – 3:00 PM, with T+2 settlement cycle.
Global Appeal:
Tadawul’s inclusion in global indices such as FTSE Russell and S&P Dow Jones in 2019 enhanced its international appeal. In 2023, it launched the first listed Asian investment fund.
Second: Nomu – A Flexible Platform for Emerging Companies
Launched in 2017, Nomu was established to support SMEs by providing flexible financing under the supervision of the Capital Market Authority. It aims to enable these companies to access capital markets and prepare for eventual migration to the main market.
Listing Requirements:
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Must be a Saudi joint-stock company or majority Gulf-owned.
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Minimum market capitalization of SAR 10 million.
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At least 20% of shares must be offered to the public, with 35–50 shareholders depending on the offering size.
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Minimum of one year of operational history, with no profitability requirement.
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Appointment of certified financial and legal advisors.
Financial Performance:
Nomu’s market capitalization grew from SAR 2 billion in 2017 to SAR 48.3 billion in 2023, representing a compound growth rate of 67%. The number of listed companies rose to 79, and the market index climbed from 3,140 points in 2017 to 24,529 points in 2023.
Regulatory Updates (2019):
These included allowing direct registration, reducing the disclosure frequency to semi-annual, and enabling the listing of real estate investment trusts (REITs).