- They have both been on a priority list of foreign firms which officials hope to attract to further reforms.
Amazon's discussions are being led by cloud computing division Amazon Web Services (AWS), which would introduce stiff competition in a market currently dominated by smaller local providers like STC and Mobily.
Riyadh has been easing regulatory impediments for the past two years, including limits on foreign ownership which had long kept investors away.
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 per cent of the Saudi population is under 30 and frequently glued to social media.
A licensing agreement for Apple stores with Sagia is expected by February, with an initial retail store targeted for 2019, said two sources.
Amazon's talks are in earlier stages and no specific date has been set for investment plans, they said.
Apple already holds second place in the Saudi mobile phone market behind Samsung, according to market researcher Euromonitor.
Amazon acquired Dubai-based online retailer Souq.com in 2017, opening access for Amazon retail goods to be sold in the kingdom.
While Saudi reform plans call for luring foreign investment broadly across sectors, officials have courted Silicon Valley players especially strongly over the past two years to complement their high-tech ambitions.
Apple and Amazon have both been on a Saudi priority list of foreign firms which officials hope to attract to further their reforms, one of the sources said. - Reuters
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