Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) are in process of licensing negotiations about participating in Saudi Arabia, according to a report, as stated below:
–A licensing agreement for Apple stores with SAGIA, Saudi Arabia’s foreign investment authority, is expected by February, according to Reuters, with a 2019 target for the first retail store.
–Amazon’s talks, which are at an earlier stage than Apple, are being led by Amazon Web Services, the company’s cloud-computing division, but there is no specific date set for Amazon’s investment plans, Reuters says.
–Currently, neither company has a direct presence in Saudi Arabia. Both Amazon and Apple sell products in the country through third parties, according to Reuters.
As far as Amazon is concerned, they are at an earlier stage, and no specific date has been set for investment plans, they cited.
Both Apple and Amazon are already in the Saudi Arabian market, selling their products via third parties. According to a report from market research firm Euromonitor, Apple products stand in second place in the Saudi mobile phone market behind Samsung. As a result, both companies are creating a presence within the country.
Head of Dubai-based MENA Catalysts Inc. Sam Blatteis, cited: “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.”
Saudi Arabia is showing an inclination to offer more foreign investment into the country. Last month, the administration publicized campaigns to announce tourist visas in 2018. The country expects 2020 tourist spending will hit $47 billion (£36 billion), according to reports. Earlier, visas were only for people traveling to the country for work or 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 intends to welcome 30 million visitors per year by 2030, compared to the 18 million noted in 2016. Apple stores plan to increase the profile of the company’s products, and offer maintenance and community events in line with its approach to brand its stores as “town squares.”