Saudi Arabia is lifting its ban on voice calls on Skype, Whatsapp and other applications in the latest in a series of reforms by the kingdom’s new crown prince designed to make the country more attractive for business.

The decision was made despite the negative impact it will likely have on Saudi’s three main telecoms companies, which made significant revenue from international calls made the 12 million foreigners living in Saudi Arabia, reported the Telegraph.

Voice and video calling apps such as WhatsApp and Skype will be "widely available to users", stated the report citing a government statement said, in a move aimed at improving business confidence as the kingdom transitions into a post-oil era.

"Digital transformation is one of the key kick-starters for the Saudi economy, as it will incentivise the growth of internet-based businesses, especially in the media and entertainment industries," said the statement.

"Access to VoIP (voice over internet protocol) will reduce operational costs and spur digital entrepreneurship – that's why it is such an important step in the Kingdom's internet regulation," it added.