Amazon strikes deal to buy Dubai's Souq.com
Amazon on Tuesday agreed a purchase Dubai-based Souq.com, the Middle East’s largest online retail and marketplace site, for an undisclosed fee.
Amazon.Com Inc.
$179.22
13:09 18/04/24
Nasdaq 100
17,394.31
12:15 18/04/24
Subject to closing conditions, the acquisition is expected to close in 2017, adding Souq's 45m-plus visits per month, with regional operations in the Saudi Arabia, United Arab Emirates and Egypt.
While the value of Amazon's bid was not disclosed, on Monday, Dubai rival Emaar Mall announced that it had made an $880m offer to buy Souq.com that had been rejected.
Souq chief executive and co-founder Ronaldo Mouchaware said the acquisition was "a critical next step in growing our e-commerce presence on behalf of customers across the region".
"By becoming part of the Amazon family, we'll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon's great track record of empowering sellers."
Amazon's senior vice president for international consumer business Russ Grandinetti said the two firms "share the same DNA – we’re both driven by customers, invention, and long-term thinking”.
He added: "Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We're looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East."
In March last year Souq, which was founded in 2005 by Syrian entrepreneur Ronaldo Mouchawar, drummed up more than $275m of venture financing from investors including Standard Chartered Private Equity, the World Bank's International Finance Corp, Baillie Gifford, New York's Tiger Global Management and South Africa’s Naspers, in what was said to be the largest financing of an e-commerce business in the Middle East region.
On Tuesday, Dubai Crown Prince Sheikh Hamdan bin Mohammed Al Maktoum, said the Amazon deal highlighted Dubai’s position as "a regional and global hub for the world’s biggest and leading organizations, fostering in its ecosystem that amalgamates the brightest minds, talent, thought leaders, entrepreneurs and investors from around the world".