His release came hours after he told Reuters at the opulent Ritz-Carlton hotel in Riyadh that he expected to be cleared of any wrongdoing and be released from custody within days.
Family sources said Prince Alwaleed was released on Saturday.
“He has arrived home,” one told Reuters.
Saudi officials could not immediately be reached for comment and the terms of his release were not immediately clear.
Alwaleed had been confined at the Ritz-Carlton since early November, along with dozens of others, part of Crown Prince Mohammed bin Salman’s plan to consolidate control and reform oil superpower Saudi Arabia.
In his first interview since he was taken into custody in November, Alwaleed said he was continuing to maintain his innocence of any corruption in talks with authorities.
He claimed he expected to keep full control of his global investment firm Kingdom Holding Co without being required to give up assets to the government.