Apple is in talks with Saudi Arabia’s foreign investment authority (SAGIA), a source has claimed.

Amazon’s discussions are reportedly being led by cloud computing division Amazon Web Services (AWS), as the company seeks to compete in a market currently dominated by smaller local providers such as Mobily and STC.

A licensing agreement for Apple stores with SAGIA is expected by February and an initial retail store targeted for 2019, sources familiar with the discussions have said.

However, Amazon’s talks are at an earlier stage and no specific date has been set for investment plans, they said.

Both Apple and Amazon already sell products in Saudi Arabia via third parties.

Apple products stand in second place in the Saudi mobile phone market behind Samsung, according to market researcher Euromonitor.

However, both companies are yet to establish a direct presence within the country.

Sam Blatteis, who heads Dubai-based tech advisory MENA Catalysts Inc, said: “Many tech multinationals now in Saudi Arabia are either vendors to the Saudi government or, in the case of Uber, have benefited from a sizable Saudi investment.

“Amazon entering the Saudi market would be a step-change.”

The news does not mark the first time in recent months that Saudi Arabia has signalled a willingness to invite more foreign investment into the country.

Last month, the regime announced plans to introduce tourist visas in 2018.

The country hopes that by 2020 tourist spending will hit $47 billion (£36billion), CNN reported.

Visas have previously only covered people travelling to the country for work or for religious reasons.

Prince Sultan Bin Salman said: “The targets are people who want to literally experience this country and the grandness of this country."

Saudi Arabia aims to have 30 million visitors per year by 2030 compared to the 18 million recorded in 2016.