SNB Capital Nomu Fund to enable unqualified investor access to Nomu: Alqasem

Q: How will the fund enable individual investors to access Nomu without meeting the qualified investor criteria?

A: The fund allows individual investors to access Nomu without the need to meet the qualifications of a qualified investor. This will help expand the investor base and boost liquidity in Nomu.

This move enhances individual investor participation in the development of Saudi SMEs and contributes to the development of the financial sector, in line with the objectives of Saudi Vision 2030.

Q: What are the main sectors targeted by the fund?

A: The fund focuses on investing in SMEs offering growth opportunities across various sectors.

The fund's investments include the stocks of newly listed companies on Nomu - the Parallel Market, as well as initial public offerings (IPOs) and rights issues. It also invests in traded real estate investment trusts (REITs) and exchange-traded funds (ETFs).

Moreover, the fund invests in companies that have transitioned from Nomu to the Main Market for a period of five years post-transition.

Q: What strategies does the fund deploy to capitalize on potential opportunities in Nomu over the long term?

A: The fund adopts an active investment strategy aimed at achieving sustainable long-term returns by focusing on the stocks of companies demonstrating high growth potential and contributing to local economic development.

Its strategy includes diversification across various economic sectors in line with Shariah-compliant guidelines, aiming for growth while minimizing risk.

The fund also relies on in-depth analysis of the market and targeted companies to ensure investments deliver the best returns for investors.

With this strategy, the fund seeks to capture promising opportunities in the Parallel Market while maintaining investment discipline and responding to market changes.

The launch of this fund comes amidst the growth of Nomu, which saw 98 listed companies as of October 2024, reflecting the market expansion and sector diversity.

Q: How does the fund support local investment strategies and the development of the Saudi stock market?

A: The fund is part of SNB Capital’s strategy to support the objectives of Vision 2030 and the Financial Sector Development Program. It facilitates investor access to SMEs, thereby increasing the depth and liquidity of the financial market.

The fund also empowers investment in emerging local companies with growth potential, contributing to the stability and diversification of the Saudi economy.

Additionally, it enhances funding opportunities for local companies, enabling them to expand and develop their businesses, which directly contributes to national economic growth.

This way, the fund serves as a vital tool for supporting government policies aimed at developing the non-oil sector and strengthening the role of the financial sector in driving economic progress.