Amazon to Purchase Middle East Online Retailer SOUQ.com

Dubai: On Tuesday Internet business mammoth Amazon declared arrangements to extend its nearness in the Middle East. Amazon won the battle to acquire Middle East online retailer, thwarting a last minute bid by Dubai billionaire Mohamed Alabbar’s Emaar Malls EMAA.DU.

Amazon has made its first move into the Middle East in the wake of consenting to purchase the area’s biggest online retailer, Souq.com, for an undisclosed sum.

The esteem and terms of the arrangement were not revealed. The obtaining is relied upon to shut in 2017, as per a joint articulation on Tuesday.

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Souq was propelled in 2005 by Syrian-born entrepreneur Ronaldo Mouchawar and offers more than 8.4 million items.

It sells across 31 categories including consumer electronics, fashion, health and beauty, household goods and baby.

“Amazon and Souq share the same DNA. We’re driven by customers, invention and long-term thinking,” said Amazon senior vice-president Russ Grandinetti.

Mr Grandinetti continued: “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.”

The arrangement was uncovered a day after Emaar Malls, the administrator of Dubai’s greatest shopping center, made an offer of $800m (£636m) for Souq.

The arrangement seemed to get the underwriting of the Dubai government which is progressively concentrating on technology.

The deal appeared to get the endorsement of the Dubai government which is increasingly focusing on technology.

Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid al-Maktoum said Amazon’s entry into the region showed “Dubai’s position as a regional and global hub for the world’s biggest and leading organizations.”

Dubai is a worldwide exchange, transport and tourism center, facilitating provincial home office for some multinational firms.

“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,” Souq.com Co-Founder Ronaldo Mouchawar said in the statement.

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