Amazon bought the Middle East‘s largest internet online vendor Souq.com on Tuesday for an unnamed amount, just one day after a state-backed company disclosed a US $800 million counter-offer.
The purchase was described as growing Amazon’s authority into the Mideast as chairman of the state supported firm Emaar is getting ready to start on his own retail online website in a nation branded more for it’s lavishness of malls than internet shopping.
This might put Seattle-based Amazon in a head to head competitive stance with a powerful firm headed by one of the sheikhdom’s favored industry magnate.
“This is a milestone for the online shopping space in the region,” Souq.com co-founder and CEO Ronaldo Mouchawar stated in a testimonial.
The statement said the 2 companies anticipated the transaction to finalize this year.
“Together, we’ll work hard to provide the best possible service for millions of customers in the Middle-East,” Russ Grandinetti, the senior VP with Amazon, stated.
In acquiring Souq.com, Amazon will definitely jump into the crucial Mid-east markets in Egypt, the United Arab Emirates as well as Saudi Arabia, in which the Dubai-based retailer currently has confined operations.
As a privately owned company, Souq.com has not had to file any type of earning information, even though its website previous year raised over $275 million of financing which the Corporation said would no doubt help fuel its upcoming growth.
Souq.com’s rank as a free zone company furthermore means Amazon is able to operate a 100 % foreign owned business. Amazon’s entry in the UAE arrives shortly after Apple Inc. opened there first store within the Arab world located in the heart of Dubai as well as the UAE capital of Abu Dhabi on October 2015.
The website’s leading investors include Tiger Global Management LLC with Southern Africa based Naspers Ltd.
Rumors however about Amazon’s continued interest in Souq.com have been circulated for several months now. Back in November, Emaar chairman Mr. Mohamed Alabbar apparently met up with Amazon’s CEO Jeff Bezos in the state backed firm’s Dubai Mall, home to the enormous aquarium and within the shadow of Burj Khalifa, the world’s tallest structure which it built.