Nomu vs Tadawul: Where Should an Expat Invest?

For most expats, Tadawul is the more practical market for investing in Saudi Arabia, while Nomu is better suited to experienced, higher-risk investors who qualify to invest in the Parallel Market.

The key differences come down to foreign investor access, company size, liquidity, risk, listing standards and investor eligibility.

Key Takeaways

• Nomu offers access to smaller companies but carries greater liquidity and investment risk.
• Tadawul is generally the easier choice for expats, with broader foreign investor access and higher liquidity.
• Foreign investors can now access Tadawul directly without the former QFI qualification requirement.
• Nomu remains restricted to Qualified Investors, making it less accessible to many expats.

My contact details are hello@adamfayed.com and WhatsApp ‪+44-7393-450-837 if you have any questions.

The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

What is the Tadawul main market in Saudi Arabia?

Tadawul is still commonly used to refer to the Saudi Exchange and, informally, its Main Market. Technically, however, the Saudi Exchange operates both the Main Market and Nomu.

The Main Market is its flagship equities market and hosts established Saudi companies across banking, energy, telecommunications, healthcare, consumer goods, industrials and real estate.

As of August 2026, the Saudi Exchange lists 206 companies on the Main Market, compared with 47 on Nomu.

The Main Market generally has higher listing requirements than Nomu.

A company seeking a Main Market listing must generally meet a minimum market capitalization of SAR 300 million and have at least 200 public shareholders.

The Main Market also has more extensive continuing disclosure requirements.

For an expat investor, this makes Tadawul the more accessible starting point for gaining diversified exposure to established Saudi businesses.

Importantly, access for foreign investors has expanded.

From 1 February 2026, the Capital Market Authority opened direct Main Market investment to all categories of foreign investors, including non-resident foreign investors, and eliminated the previous QFI qualification requirement for the Main Market.

What is Nomu in Saudi Arabia?

Nomu is Saudi Arabia's Parallel Market, designed to provide an alternative listing venue for companies that may not meet all the requirements of the Main Market.

Its lower listing requirements can make Nomu more suitable for smaller or growing companies.

Nomu has a minimum market capitalization requirement of SAR 50 million and requires at least 50 public shareholders, compared with SAR 300 million and 200 public shareholders for the Main Market.

Nomu can therefore give investors exposure to businesses at an earlier stage of development. That can create opportunities for stronger growth, but it also introduces additional risks.

For foreign investors, the most important distinction is eligibility.

Although foreign individuals and entities can access Saudi securities markets, investment in Nomu is restricted to investors who satisfy the definition of a Qualified Investor in the Parallel Market.

This should not be confused with the former Qualified Foreign Investor, or QFI, regime for foreign access to the Main Market. The QFI regime was removed in February 2026, while Nomu continues to apply its separate Qualified Investor eligibility rules.

Tadawul vs Nomu: Risk and return potential

The Main Market generally provides access to larger and more established companies, while Nomu tends to involve greater company-specific, liquidity and price-volatility risks.

The difference largely reflects the types of companies listed on each market.

Tadawul's Main Market includes many larger and more established businesses, while Nomu provides a listing route for smaller and growing companies with less demanding requirements.

Nomu's focus on smaller companies can give investors access to businesses with more room to expand.

However, these companies may also have less established financial track records and face greater uncertainty around future performance and share-price movements.

For an expat, this risk can be particularly important when the investment has a defined purpose or time horizon.

Someone who expects to use their portfolio for a future relocation, property purchase or other major expense may place greater value on established companies and the ability to exit an investment when needed.

Higher growth potential should not, however, be interpreted as higher expected returns in every case.

The potential for greater growth comes with a higher level of investment risk.

Which has better liquidity, Tadawul or Nomu?

Tadawul generally has deeper trading activity and broader investor participation than Nomu, although liquidity varies significantly between individual shares.

Liquidity matters particularly to expats because the investment may eventually need to be converted back into cash and potentially transferred outside Saudi Arabia.

A highly liquid stock generally makes it easier to buy or sell without having a substantial impact on the market price.

Less liquid securities can take longer to sell and may require an investor to accept a less favorable price.

This does not mean every Tadawul stock is highly liquid or every Nomu stock is illiquid.

The Saudi Exchange operates market-making arrangements intended to support liquidity across eligible securities.

How do Tadawul and Nomu fees and trading costs compare?

Tadawul and Nomu have the same exchange-level trading commission for equities, so the main cost differences for expats are more likely to come from their broker, custody arrangements and currency conversion.

The Saudi Exchange currently lists a 15.5 basis-point total trading commission for equities on both the Main Market and Nomu – Parallel Market.

Equity trades operate on a T+2 settlement cycle, meaning transactions settle two business days after the trade date.

An expat should also check the fees charged by their chosen broker or investment institution, which may include brokerage charges, custody fees, account-related costs, currency conversion charges and other applicable service fees.

For investors who trade frequently, even relatively small differences in transaction costs can accumulate.

Long-term investors, meanwhile, may place greater importance on account access, research tools, custody arrangements and the ability to transfer funds efficiently.

What taxes can apply to expats investing in Saudi stocks?

For most expats, investing in Saudi-listed shares does not create a Saudi personal income tax charge on share trading, but dividends paid to non-residents can be subject to Saudi withholding tax.

ZATCA's guidance states that the Income Tax Law does not treat the trading of shares in companies listed on the Saudi Capital Market by a resident natural person as a taxable activity.

However, dividends are a separate consideration.

ZATCA states that dividends paid by Saudi resident companies to non-resident shareholders can be subject to withholding tax.

An expat should therefore distinguish between:

• Capital gains from selling investments
• Dividends received from Saudi companies
• Their Saudi residency status
• Their tax residency in another country
• Any reporting or taxation obligations in their current or future country of tax residence

The final point is particularly important. Moving away from Saudi Arabia does not necessarily end an investor's tax obligations elsewhere.

An expat who becomes tax resident in another jurisdiction may have to report Saudi investments, dividends or investment gains under that country's rules.

Tax treatment can also vary according to individual circumstances and applicable tax treaties, so investors should obtain advice based on their specific tax residence before making substantial investments.

Tadawul or Nomu: Which is better for expats?

For most expats who are new to Saudi investing, Tadawul is likely to be the more practical starting point.

Its Main Market status, larger number of listed companies, broader foreign-investor access and generally stronger liquidity make it easier to build and manage a Saudi equity portfolio.

The 2026 reforms also removed the former QFI qualification requirement for direct foreign investment in the Main Market.

Nomu can be more appropriate for experienced investors who specifically want exposure to smaller Saudi companies and understand the additional risks involved.

*Listed-company figures are current as of August 2026 and can change as companies list, delist or transfer between markets.

For many expats, the answer does not have to be one or the other.

Tadawul can provide the core Saudi equity exposure, while eligible investors can consider selected Nomu companies as a smaller, higher-risk allocation.

FAQs

Can non-Saudis invest in Tadawul?

Yes. Since 1 February 2026, non-Saudi investors, including non-resident foreigners, can invest directly in Tadawul's Main Market without the previous Qualified Foreign Investor (QFI) qualification.

They still need to meet the applicable account opening and market access requirements through an authorized market participant.

Can non-Saudis invest in Nomu?

Non-Saudis can invest in Nomu if they meet the Parallel Market’s Qualified Investor requirements.

Not every expat will qualify, so investors should confirm their eligibility with an authorized capital market institution before attempting to trade Nomu-listed shares.

How many stocks are in Tadawul and Nomu?

As of August 2026, Tadawul's Main Market has 206 listed companies, while Nomu – Parallel Market has 47, for a total of 253 listed companies across the two markets.

The number can change as companies are listed, delisted or transferred between markets.

What is a parallel market?

A parallel market is an alternative stock market with more flexible listing requirements than a main market, designed to give smaller or growing companies access to public capital.

In Saudi Arabia, Nomu is the Parallel Market, and investment is restricted to investors who meet the applicable Qualified Investor requirements.

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