Apple and Amazon are in licensing discussions with Riyadh on investing in Saudi Arabia. Both companies already sell products in Saudi Arabia via third parties but they and other global tech giants have yet to establish a direct presence.
Riyadh has been easing regulatory impediments for the past two years, including limits on foreign ownership which had long kept investors away, since falling crude prices highlighted the need to diversify its oil-dependent economy.
Luring Apple and Amazon would further Prince Mohammed’s reform plans and raise the companies’ profile in a young and relatively affluent market, which already boasts some of the highest internet and smartphone use in the world.
About 70 percent of the Saudi population is under 30 and frequently glued to social media.
A licensing agreement for Apple stores with Saudi officials is expected by February, with an initial retail store targeted for 2019.
Amazon’s talks are in earlier stages and no specific date has been set for investment plans.
These talks are part of Saudi Crown Prince Mohammed bin Salman's Vision 2030 reform plans.
