(Bloomberg) -- Saudi Arabia will allow foreigners to trade shares directly in its market for smaller companies as the kingdom gradually opens its market amid a wider drive to diversify its economy.
The platform, known as Nomu, will be open to foreigners starting January, Capital Market Authority Chairman Mohammed Elkuwaiz said during an event in Riyadh on Thursday. Qualification requirements for foreign investors that apply to the main stock market will be waived for those trading in Nomu, he said.
Read More: Two Years of Reform and Saudi Stocks Have Little to Show for It
The decision is the latest effort by Saudi Arabia to turn its stock market into a gateway for increased investment from abroad as authorities seek to transform an economy that's over-reliant on oil revenue. Nomu was set up earlier this year to attract smaller firms to the Middle East's largest exchange.
Companies listed there don't need a track record of profitability, but must have operated for at least a year and have a market value of at least 10 million riyals ($2.7 million).
To contact the reporters on this story: Matthew Martin in Riyadh at mmartin77@bloomberg.net, Dinesh Nair in London at dnair5@bloomberg.net, Filipe Pacheco in Dubai at fpacheco4@bloomberg.net.
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, John Viljoen, Dana El Baltaji
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