US-based retail giant Amazon has framed a deal to buy Souq.com, the largest online retailer of the Middle East. Terms of the agreement and amount are yet to be made public. More than 8.4 million products across 31 categories including consumer electronics, fashion, health and beauty, household goods and baby are available on Souq.com founded in 2005.
Souq.com which has its presence in Saudi Arabia, United Arab Emirates and Egypt attracts more than 45 million visits per month. Amazon has wrestled the deal from rival Emaar Malls’ US $ 800 million offer.
If reports are to be believed then Amazon reportedly agreed to pay about US $ 650 million (£ 517 million) for the deal. The deal is seen as Amazon’s latest effort to make its presence felt in overseas where it has shown huge potential to grow in untapped markets.
“Joining the Amazon family will enable us to drive further growth, benefit from their technological investment, offer an even wider product selection through worldwide sourcing, deliver an enhanced customer service experience, as well as continue Amazon’s great track record of empowering sellers locally and globally,” Souq Chief Executive and Co-Founder Ronaldo Mouchawar was quoted as saying in a statement issued by the company.
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“This is a milestone for the online shopping space in the region. As we take this next step in the journey with Amazon, our customers will remain our key focus and we will continue to deliver a seamless online shopping experience. Over time, I’m excited for what this acquisition will mean for every customer across the region,” added Mouchawar.
