E-commerce giant Amazon enters in market of UAE by acquiring Souq.com
Source :News Bharati English   Date :30-Mar-2017

Riyadh, March 30: Amazon, the US-based giant e-commerce company has decided to enter the market of UAE. Therefore, Amazon has acquired Souq.com, the Middle East’s largest online retailer. This agreement brings Amazon into a fast-growing market as it expands into a wide range of services.
In a joint statement, Amazon said the acquisition would enable Souq to “continue growing while working with Amazon to bring even more products and offerings to customers worldwide”. "Amazon and SOUQ.com share the same DNA - we're both driven by customers, invention, and long-term thinking", said Russ Grandinetti, Amazon Senior Vice President, International Consumer.

Meanwhile, Souq.com Chief Executive and Co-founder Ronaldo Mouchawar called the agreement “a critical next step in growing e-commerce presence on behalf of customers across the region.” "We are guided by numerous 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", he said.

However, the deal’s specific value was not announced, but according to analysts, it is estimated anywhere between 650 million USD to one billion USD.

Interestingly, The Amazon deal was welcomed by the Dubai government, which is increasingly focusing on technology, as the emirate expands its retail footprint in the region. Dubai's Crown Prince Sheikh Hamdan bin Mohammed bin Rashid al-Maktoum said in a statement it showed the city state's position "as a regional and global hub for the world's biggest and leading organizations."

Notably, Souq.com, based in Dubai is the largest e-commerce platform in the Arab world offering more than 400,000 products such as consumer electronics, fashion products, and household goods. Souq.com, founded in 2005, stocks 8.5 million items on its website and generates about 50 million monthly visits. In 2015, it contributed US$5.3 billion or 0.4 percent to GDP compared to an average 3.0 in parts of Europe, Asia and North America. Souq has regional operations in Saudi Arabia, Egypt and UAE.

Whereas, Amazon, is an American electronic commerce and cloud computing company that was founded on July 5, 1994, by Jeff Bezos and is based in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon has separate retail websites for the United States, the United Kingdom, Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico. Amazon also offers international shipping to certain other countries for some of its products. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization and was in the third quarter of 2016 the fourth most valuable public company.