Growth market: SAR 8 billion in financing supporting Saudi Vision 2030
A remarkable achievement in supporting the national economy
Professor Mohammed Al-Quwaiz, Chairman of the Capital Market Authority, announced that the volume of financing injected through the parallel market “Nomu” has reached approximately 8 billion Saudi riyals since its launch in 2017. This figure reflects the rapid growth and pivotal role played by the Saudi financial market in enabling the small and medium enterprises sector, which is a key pillar in achieving the objectives of the Kingdom’s Vision 2030.
This statement was made during a panel discussion at “Finance Week,” organized by the General Authority for Small and Medium Enterprises (Monsha’at) in cooperation with the Small and Medium Enterprises Bank. The event aims to raise awareness among entrepreneurs about available financing solutions and enhance their readiness to utilize them, thereby contributing to the sustainability and expansion of their projects.
Context of launching “Growth” and its strategic objectives
The Nomu Parallel Market was launched in February 2017 as an alternative platform for initial public offerings (IPOs) with more flexible listing requirements compared to the main market. Its purpose was to provide a new financing channel for promising companies, particularly small and medium-sized enterprises (SMEs), which were facing difficulties in securing the necessary funding for their expansion plans through traditional channels such as bank loans. Through Nomu, these companies gained access to a wider range of qualified investors, enhanced their governance and transparency, and increased their market value.
Economic importance and expected impact
The impact of this achievement extends far beyond financial figures, encompassing broader economic and social dimensions. Domestically, empowering small and medium-sized enterprises (SMEs) contributes to diversifying the Kingdom's economic base, reducing reliance on oil, and creating thousands of quality jobs for Saudi youth. Furthermore, the success of companies listed on the Nomu Parallel Market (Nomu) fosters entrepreneurship and innovation across various sectors.
Regionally, the success of Nomu reinforces the Saudi financial market's position as the largest and deepest market in the Middle East and North Africa, making it an attractive destination for regional companies seeking financing and growth. Internationally, this development reflects the maturity of the Kingdom's regulatory and investment environment and increases foreign investors' confidence in the Saudi economy.
Integrated financing system
Al-Quwaiz pointed out that the financing landscape in the Kingdom has witnessed a qualitative shift over the past decade, no longer limited to traditional sources. He explained that the financial market has become a key enabler for diversifying financing options through modern instruments such as investment funds, private equity, and venture capital, in addition to the rapidly growing debt market. This integrated system provides companies with the flexibility to choose the most suitable solutions for their various growth stages and supports their long-term sustainability.
The Chairman of the Capital Market Authority stressed that financial awareness remains a pivotal element in enabling entrepreneurs to make informed financing decisions, praising the growing national support that this vital sector enjoys, which directly contributes to achieving the ambitious goals of the Kingdom’s Vision 2030.
