An e-commerce marketplace Souq.com headquartered in Dubai, which was already commonly described as “the Amazon of the Middle East” has been recently acquired by Amazon. The retailer employs more than 3,000 people and sells over 400,000 products, from clothes and perfumes to notebooks and televisions to neighboring Middle Eastern countries such as Kuwait, Oman, Bahrain and Egypt. The well-established player has over 23 million online visits per month.
It is obvious that by this transaction Amazon plans to expand its presence in the Middle East region, which covers over 50 million consumers across several countries. Although Amazon didn’t disclose the price of the sale and other terms officially, reportedly the deal was valued at around $650 million.
The Emirati Souq has been the target of speculative gossips about its future for several months, with a number of potential acquirers interested in either its entire business or a weighty stake. Acquisition by Amazon became the largest of its type in the region. Even though the buying price fell short, this deal makes sense on many levels and is expected to close this year.