The Capital Market Authority introduced reforms that broaden investor access and strengthen liquidity in the Parallel Market. The decision expands eligibility and aims to support long-term growth.
Holders of bachelor’s degrees in finance, investment, or accounting can now qualify to invest. The update also maintains access for those with advanced degrees or professional certifications. These measures are designed to attract a more diverse investor base.
The CMA simplified the trading requirements for entry. Previously, investors needed ten quarterly trades worth SR40 million. Now, they must complete trades totaling SR20 million over the past year. This change reduces the barrier to participation and encourages more qualified investors to join the Parallel Market.
Officials highlighted that the reforms align with international standards and reflect the CMA’s commitment to modernizing the market. The Authority had launched a public consultation earlier this year to collect feedback on investor eligibility. The feedback emphasized broader access and simpler requirements.
The Authority also allowed individuals who currently serve, or have served, on the board or specialized committees of listed companies to invest. This move invites experienced industry leaders to contribute to market stability and activity.
Analysts expect the reforms to boost trading activity and market confidence. They believe broader participation will improve liquidity and support the Parallel Market’s growth.
The CMA plans to continue reviewing regulations to keep the market competitive and accessible. The reforms signal the Authority’s commitment to fostering investment and long-term economic development.
