E-commerce behemoth Amazon has reached an agreement to acquire SOUQ.com, one of the leading e-commerce players in the Middle East.
“Amazon’s entry into the region reflects the visionary foresight of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of Dubai, who launched Dubai Internet City in 1999 and adopted the e-commerce and online business legislation of 2002,” stresses His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai. “Furthermore, it reiterates Dubai’s position as a regional and global hub for the world’s biggest and leading organisations, fostering in its ecosystem that amalgamates the brightest minds, talent, thought leaders, entrepreneurs and investors from around the world.”
Joining the Amazon family will enable SOUQ.com to continue growing while working with Amazon to bring even more products and offerings to customers worldwide. The acquisition is expected to close this year subject to closing conditions.
“Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention and long-term thinking,” says Russ Grandinetti, Amazon senior vice president, international consumer. “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.”
“We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region,” adds SOUQ.com CEO and co-founder Ronaldo Mouchawar. “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.”
What happens to be one of the most anticipated M&A deals in the region so far this year, which seemed to have fallen through earlier in 2017, Amazon has reportedly made an offer of over $600 million for the acquisition of SOUQ.com. Notably, Emaar Malls had made an $800 million bid to acquire SOUQ.com.