Dubai’s biggest listed developer Emaar is to sell its online fashion platform Namshi to e-commerce company Noon for US $335.2 million.
Emaar’s Board of Directors have, in principle, approved the sale of its subsidiary Emaar Malls’ e-commerce unit Namshi to Noon.
This is subject to the approval of Noon’s Board of Directors, the company said in a statement.
“Detailed information will be disclosed once the approvals of Noon’s board are received formally,” said Ahmad Al Matrooshi, an Emaar board member.
Emaar first bought a 51 per cent stake in Namshi for US $ 151 million in 2017 from Rocket Internet’s Global Fashion Group. It later acquired the remaining stake in the online fashion retailer for US $ 129.5 million.
Accelerated by the Covid-19 pandemic, UAE has witnessed a significant surge in online shopping with the country’s e-commerce retail market hitting a record US $ 3.9 billion in 2020, growing 53 per cent annually.
The sector accounted for 8 percent of the overall retail market according to the Dubai Chamber of Commerce and Industry.
Namshi is the second largest e-commerce player in the UAE, behind Amazon with US $ 249 million, while Noon, the portal backed by Emaar founder Mohamed Alabbar and Saudi Arabia’s Public Investment Fund, is next with US $ 69 million.
