According to various sources, Amazon.com Inc has agreed “in principle” to buy 100 percent of Dubai-based online retailer Souq.com from its shareholders, on Wednesday. The largest e-commerce site in the Arab world, Souq.com sells consumer electronics, fashion, household items and other goods. Souq.com launched in 2005 as an Internet auction site and has developed into a retailer and marketplace for third-party vendors, serving a number of markets in the region, including UAE, Egypt, Saudi Arabia, Kuwait, Bahrain, Oman and Qatar. Souq.com had according to media reports been valued at $1 billion at the time of a funding round last year.
E-commerce in the Middle East is expanding quickly due to the region’s young and tech-savvy population. Kuwait, Saudi Arabia and the United Arab Emirates are among the top worldwide for mobile phone penetration.
Amazon declined to comment and a spokesperson for Souq.com did not immediately respond to a request for comment. The sources didn’t disclose the price Amazon and Souq.com have agreed on.
According to the Zawya article (below), Amazon seeks a presence in the region without having to address bureaucratic hurdles such as getting regulatory approvals from each region and signing up vendors and suppliers.
For the full scoop, visit http://www.zawya.com/mena/en/story/Amazon_to_buy_Middle_Eastern_online_retailer_Souqcom_sources-TR20170322nL5N1GZ4OWX3/