Saudi Arabia Unveils Major 2026 Business Reforms

Saudi authorities have rolled out a wide package of regulatory changes for businesses, investors, and property buyers, with most measures taking effect in early 2026. The updates cover capital markets, investment registration, real estate ownership, and property taxation.

From 1 February 2026, the Capital Market Authority will open the Main Market of the Saudi Stock Exchange to all categories of foreign investors. The reforms abolish the Qualified Foreign Investor regime and the equity swap framework, allowing foreign investors to invest directly through licensed Saudi intermediaries without prior approval or qualification thresholds. Alongside this, the Saudi Exchange and clearing house Muqassa have cut fees on index futures linked to the largest listed companies and granted a one-year waiver of futures transaction and settlement fees, with adjusted margin requirements to attract more trading firms.

An updated Investment Law repeals the previous Foreign Investment Law and replaces licensing with a registration mechanism. Investors register with the وزارة الاستثمار, then obtain commercial registration and any sectoral licenses through government e-channels. The law treats local and foreign investors equally, introduces a national-security screening for designated sectors, requires beneficial-ownership identification, and permits arbitration, mediation, and conciliation for disputes.

Property ownership and taxes

From 22 January 2026, a new Law of Real Estate Ownership by Non-Saudis allows foreign residents to own personal residences across the Kingdom, except in Mecca and Medina. Fully foreign-owned private companies may own real estate throughout Saudi Arabia, while listed companies and specified investment funds may own or invest in property in Mecca and Medina through permitted structures.

The Zakat, Tax and Customs Authority has also issued a public consultation on the classification of Real Estate Transaction Tax violations and penalties, running through early October 2026. Property developers, brokers, and corporate buyers should expect more detailed documentation and stricter filing requirements. Together, these changes signal a more open and streamlined environment for doing business and investing in the Kingdom.

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