Saudi joint stock companies first began trading in the 1930s with the first company established being Arab Automobile. By 1975, there were 14 public companies but they were all informally traded. With rapid economic expansion that began in the 1970s, the Kingdom of Saudi Arabia embarked on a development program that included a plan to create a formal security market. In 1984, a Ministerial Committee was created from the Ministry of Finance and National Economy, the Ministry of Commerce and SAMA with the task to regulate and to develop the market.
The formation and growth of market development continued for over 20 years and successfully culminated on March 19, 2007 when the Council of Ministers approved the formation of The Saudi Stock Exchange (Tadawul).
The Nomu-Parallel Market is an alternative equity market with lighter listing requirements as compared to the Tadawul. It aims to help qualified small and medium-sized companies achieve growth by providing various funding resources. Stock trading began on February 26,2017 after the Capital Market Authority approved the listing of seven companies.