Saudi Investment Law Overhaul: New Rules for 2025-2026

Saudi Arabia has rolled out a wide set of reforms to its investment framework across 2025 and 2026, unifying how investors register and expanding access for foreign participants in the local market. The changes affect company registration, listed equities, and real estate ownership by non-Saudis.

Under the updated Investment Law, which entered into force in 2025, foreign investors now go through a single registration process rather than the previous foreign-investment licensing model. The law applies equally to Saudi and non-Saudi investors, removing the earlier distinction between the two.

The new rules spell out a clear list of investor rights. These include equal and fair treatment, protection against confiscation or expropriation without a final judicial ruling and fair compensation, the free transfer of funds, freedom to manage and dispose of investments, protection of intellectual property and trade secrets, and easier administrative procedures.

Listed shares and real estate

For Saudi listed equities, new foreign investment rules took effect on 1 February 2026, opening the Main Market to all foreign investors. The reform removed the QFI regime and abolished equity swap arrangements previously used for foreign access to listed shares.

However, existing foreign ownership caps remain in place for non-resident foreign investors other than foreign strategic investors: 10% per issuer and 49% aggregate foreign ownership

Separately, the framework for real estate ownership and investment by non-Saudis changed on 22 January 2026, introducing new pathways for foreign participation in Saudi real estate and in fund-based investment structures.

For the growing expat and business community, the reforms signal a more streamlined and predictable environment for setting up, investing, and operating in the Kingdom. Investors are advised to review the current rules directly, as the reforms are structural rather than a fee-only update.

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